The shift in the cryptocurrency landscape is becoming increasingly clear: while Bitcoin and the broader crypto market have largely stagnated, interest in artificial intelligence is surging. Reflecting this trend, Bitfarms, a publicly traded Bitcoin mining company, is actively liquidating its Bitcoin holdings and pivoting towards AI infrastructure. The move signals a broader reassessment within the mining industry as profitability wanes and alternative opportunities emerge.
Bitfarms began selling off its Bitcoin reserves in 2025, realizing approximately $28.2 million in profits from these transactions, according to the company. As of today, the company holds roughly 1,827 BTC, currently valued at around $124 million, but CEO Ben Gagnon has stated the intention is to eliminate this reserve entirely. “Over time, we will have no Bitcoin,” Gagnon told Yahoo Finance in a recent interview. The company plans to strategically sell during favorable market conditions while continuing to leverage its mining operations to generate cash flow. Hardware is expected to be divested after the Bitcoin holdings are exhausted.
The Rise of AI Infrastructure
This strategic shift is accompanied by a significant investment in artificial intelligence infrastructure. Bitfarms is developing a pipeline of 2.2 gigawatts of capacity in North America, aiming to capitalize on the growing demand for AI computing power. The company anticipates revenue from its AI business as early as 2027. To reflect this transformation, Bitfarms is rebranding as “Keel Infrastructure” and will trade under the new ticker symbol KEEL.
Bitfarms’ move isn’t isolated. The broader Bitcoin mining industry is facing increasing pressure. According to a report by CoinShares, the average cost to produce one Bitcoin for publicly listed miners reached nearly $80,000 by the end of 2025, significantly exceeding the market price. This has prompted many companies to explore more profitable ventures, such as AI data centers, which offer long-term contracts and higher margins. The challenges facing Bitcoin miners are detailed further in this article: MARA, and Co. In the Fight for Survival.
The transition from Bitcoin mining to AI infrastructure represents a fundamental shift in the business model for companies like Bitfarms. While Bitcoin mining relies on solving complex cryptographic puzzles to validate transactions and earn rewards, AI infrastructure provides the computational resources needed to train and run increasingly sophisticated artificial intelligence models. This demand is driven by the rapid advancements in areas like machine learning, natural language processing, and computer vision.
The economics of this shift are compelling. Long-term contracts with AI companies offer a more predictable revenue stream compared to the volatile Bitcoin market. The demand for AI computing power is expected to grow exponentially in the coming years, creating a potentially lucrative market for infrastructure providers. However, the transition also requires significant capital investment and expertise in a new field.
Bitfarms’ decision highlights a growing trend within the crypto mining sector. As the profitability of Bitcoin mining declines, companies are seeking alternative revenue streams to remain competitive. The move towards AI infrastructure represents a strategic bet on the future of computing and a recognition of the evolving demands of the technology landscape.
The company is scheduled to hold an investor call next month to discuss the details of its AI infrastructure development plan and provide further guidance on its financial outlook. Investors will be closely watching for updates on the company’s progress and its ability to successfully navigate this significant transformation.
Disclaimer: Investing in cryptocurrencies and related technologies carries substantial risk. This article is for informational purposes only and does not constitute financial advice.
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