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Bitfarms (TSXV:BITF) stock tanked 14% on Wednesday, topping the TSX trading volume charts with 10.45 million shares exchanging hands. The stock is continuing its downtrend that began on October 15, 2025, falling 40% in five days, after rallying 397% in 45 days from September 1, to October 14, 2025.
Other Bitcoin mining stocks, like Hut 8 Corp and Hive Digital Technologies, have also been in a downtrend. The above stocks fell as the Bitcoin price corrected 14% from its all-time high of $175,909 on October 6.
In the case of Bitfarms, investors have been more bearish as the company raised US$588 million in 1.375% convertible senior notes due 2031 on October 21, just after completing a US$300 million issue on October 15. This back-to-back capital raise will be used for general corporate purposes. This capital raising will significantly increase its debt from just $50 million as of June 30, 2025, raise interest costs, and dilute equity shareholding.
Debt raising by a company that reported an operating loss of US$72 million in the first half of 2025 raises an eyebrow. Until its shift to artificial intelligence/high-performance computing starts generating revenue, the stock may be speculative, moving on Bitcoin prices and AI enthusiasm.
