Why Bitfarms Stock Was Tanking Wednesday

Bitfarms stock dropped 14% as trading volume surged. Discover what is driving this decline in the Bitcoin mining market.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

Social Media Profiles

Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published October 22, 2025 3:45 pm EDT

a person watches a downward arrow crash through the floor — Source: Getty Images

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.