Why Bitfarms Plunged More than 12% Following Earnings

Core Viewpoint - Bitfarms (NASDAQ: BITF) shares declined 12.8% following the release of Q3 earnings, which were perceived negatively by the market despite showing strong revenue growth [1][4]. Financial Performance - Bitfarms reported Q3 revenue of $69 million, a 156% increase year over year, but the loss per share remained at $0.05, consistent with the previous quarter and an improvement from a loss of $0.07 in Q1 [3][4]. - The reported revenue and earnings missed analyst expectations, which were $85 million for revenue and a loss per share of $0.02, indicating concerns about mining margins and profitability outlook [4][7]. Strategic Shift - The company announced a strategic pivot to utilize some compute capacity for digital infrastructure projects in AI and cloud sectors, but the market response has been cautious due to ongoing investments in Bitcoin mining infrastructure and uncertainty regarding future earnings [5][6].