Bitfarms’ Strategic Shift to U.S. Energy and Computing Business Drives Buy Rating

H.C. Wainwright analyst Mike Colonnese reiterated a Buy rating on Bitfarms (BITF – Research Report) today and set a price target of $4.00.

Mike Colonnese has given his Buy rating due to a combination of factors that highlight Bitfarms’ strategic transformation and growth potential. The company is shifting from being solely a Bitcoin mining entity to becoming a U.S.-focused energy and computing business, emphasizing the development of high-performance computing (HPC) and AI data centers. This transition is supported by significant progress in laying the groundwork for future expansion, including key executive hires with relevant experience, partnerships with domain experts, and feasibility studies confirming the suitability of their U.S. sites for HPC/AI operations.
Moreover, Bitfarms has secured a substantial $300 million debt facility to fund the initial development of their Panther Creek data center, which is expected to enhance their capacity to meet the growing demand for data center services. While the company is not currently expanding its Bitcoin mining operations, its existing mining business remains undervalued compared to peers. The potential for high-margin contracted revenues from HPC/AI colocation services further strengthens the investment case, leading to the reiterated Buy rating.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BITF in relation to earlier this year.