In this paper we study the equations of flow and heat transfer in a magnetic fluid with internal rotations, when the fluid is subjected to the action of an external magnetic field. The system of equations is a combination of the Navier-Stokes equations, the magnetization relaxation equation of Bloch type, the magnetostatic equations and the temperature equation. We prove the local-in-time existence of the unique strong solution to the system equipped with initial and boundary conditions and establish a blow-up criterium for strong solutions. We then prove the global-in-time existence of strong solutions, under smallness assumptions on the initial data and the external magnetic field.