Education
About Us
Working with TipRanks
Follow Us
Bitfarms (TSE:BITF)
TSX:BITF
Top Page
Bitfarms
(TSX:BITF)
Select Model
Select Model
Rating:60Neutral
Price Target:
C$2.50
▼(-40.48% Downside)
Bitfarms' stock score is driven by strong technical momentum and positive earnings call highlights, including revenue growth and strategic expansions. However, significant financial performance challenges and valuation concerns weigh on the overall score.
Positive Factors
Negative Factors
Bitfarms (BITF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$2.32B
Dividend YieldN/A
Average Volume (3M)5.19M
Price to Earnings (P/E)―
Beta (1Y)1.76
Revenue Growth46.65%
EPS Growth44.91%
CountryCA
Employees170
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.07
Shares Outstanding552,599,600
10 Day Avg. Volume9,051,597
30 Day Avg. Volume5,190,286
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.19
Enterprise Value/Revenue1.80
Enterprise Value/Gross Profit-26.90
Enterprise Value/Ebitda17.68
Forecast
1Y Price Target
$4.75Price Target Upside13.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Bitfarms Business Overview & Revenue Model
Company DescriptionBitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in North America. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is headquartered in Toronto, Canada.
How the Company Makes MoneyBitfarms generates revenue primarily through the mining of Bitcoin, which involves using powerful computers to solve complex mathematical problems that validate transactions on the Bitcoin blockchain. For each block mined, the company receives a block reward in Bitcoin, which is a significant revenue stream. Additionally, Bitfarms may generate income from the sale of mined Bitcoin, which can be influenced by market conditions and price fluctuations. The company also benefits from partnerships with energy providers to secure low-cost electricity, further enhancing its profit margins. Furthermore, Bitfarms strategically invests in expanding its mining capabilities and infrastructure to scale operations and increase its output, thereby boosting its overall revenue potential.
Bitfarms Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in revenue growth and strategic expansions in the North American market. However, it also acknowledged challenges, particularly in Argentina and the need for regulatory approvals in Quebec. The company's proactive measures, such as infrastructure investments and a stock buyback program, reflect a strong position despite the setbacks.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Second quarter revenue reached $78 million, up 87% year-over-year, demonstrating significant growth in the company's financial performance.
Strong Cash Flow from Bitcoin Mining
The company generated approximately $8 million per month in free cash flow from mining operations, significantly contributing to funding operations and strategic initiatives.
Expansion of North American Energy Portfolio
Bitfarms operates a total of 17.7 exahash across their data centers, with a strong focus on expanding their North American presence, particularly in Pennsylvania and Washington.
Successful Stock Buyback Program
The company launched its first-ever stock buyback program, repurchasing 5 million shares, demonstrating confidence in its undervaluation and financial strength.
HPC and AI Expansion Plans
Advancements in the HPC and AI sectors are underway, with significant investments in infrastructure and strategic partnerships established to capitalize on market opportunities.
Negative Updates
Shutdown of Argentina Operations
Bitfarms decided to shut down its mining operations in Argentina due to rising energy costs and unreliable electricity supply, impacting their hash rate.
Operating Loss and Impairment Charges
The company reported an operating loss of $40 million in the quarter, including $15 million of impairment charges attributable to the Argentina operation.
Challenges in Regulatory Approval for Quebec
The conversion of megawatts in Quebec from crypto mining to data center usage requires regulatory approval, which currently lacks a clearly defined path.
Company Guidance
During Bitfarms' Second Quarter 2025 Earnings Call, significant guidance metrics were shared, highlighting the company's strategic moves and financial performance. The quarter saw Bitfarms install over 12,000 miners, achieving a Bitcoin mining output of 718 BTC at a direct cost of $48,200 per Bitcoin, while generating revenues of $98,000 per Bitcoin. The shutdown of operations in Argentina was announced, expected to result in $18 million proceeds, equivalent to over two years of free cash flow from the site. Key performance improvements included a 1% increase in energy efficiency, a 2% improvement in average electricity price, a 5% reduction in direct hash costs, and a 2% increase in uptime. Bitfarms reported operating 17.7 exahash at 17 watts per terahash across 14 data centers, generating approximately $8 million in monthly free cash flow. The company also enhanced its Bitcoin holdings by 25% from year-end 2024, now valued at $145 million with Bitcoin priced at $119,000. Additionally, Bitfarms launched a stock buyback program for up to 49.9 million shares, repurchasing 5 million shares in the first two weeks, reflecting 10% of the total planned buyback.Bitfarms Financial Statement Overview
Summary
Bitfarms is experiencing revenue growth but faces substantial profitability and cash flow challenges. The low leverage is positive, but negative margins and cash flows indicate operational inefficiencies and financial instability.Income Statement
Bitfarms has shown some revenue growth, with a 17.31% increase in the TTM period. However, the company is struggling with profitability, as indicated by negative gross profit and net profit margins. The EBIT and EBITDA margins also reflect operational challenges, with EBIT being significantly negative. Overall, while there is revenue growth, the lack of profitability is a major concern.30
Negative
Balance Sheet
The company's balance sheet shows a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting poor profitability. The equity ratio is relatively stable, suggesting a solid asset base. Despite the low leverage, the negative ROE highlights significant profitability issues.45
Neutral
Cash Flow
Cash flow analysis reveals significant challenges, with negative operating and free cash flows. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income to cash. Although there is a slight improvement in free cash flow growth, the overall cash flow situation remains concerning.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 245.66M | 192.88M | 146.37M | -8.38M | 169.20M | 34.79M |
| Gross Profit | -16.42M | -32.36M | -21.50M | -140.29M | 110.83M | -1.90M |
| EBITDA | 25.00M | 74.35M | -7.73M | -103.47M | 70.53M | 1.47M |
| Net Income | -86.20M | -54.06M | -104.04M | -239.05M | 22.13M | -16.29M |
Balance Sheet | ||||||
| Total Assets | 827.95M | 667.62M | 378.73M | 343.10M | 542.59M | 51.70M |
| Cash, Cash Equivalents and Short-Term Investments | 144.47M | 146.84M | 84.04M | 35.44M | 191.30M | 5.95M |
| Total Debt | 74.91M | 23.41M | 19.87M | 65.01M | 84.74M | 28.37M |
| Total Liabilities | 165.46M | 59.62M | 83.96M | 87.53M | 120.00M | 36.26M |
| Stockholders Equity | 662.49M | 608.00M | 294.76M | 255.57M | 422.58M | 15.45M |
Cash Flow | ||||||
| Free Cash Flow | -514.16M | -480.42M | -47.71M | -158.73M | -230.43M | 2.74M |
| Operating Cash Flow | -261.60M | -140.56M | 23.60M | 36.25M | -37.17M | 7.22M |
| Investing Cash Flow | 47.48M | -178.39M | -58.34M | -155.01M | -215.15M | -3.60M |
| Financing Cash Flow | 186.04M | 294.46M | 87.88M | 24.01M | 371.99M | 185.00K |
Bitfarms Technical Analysis
Positive
4.20
Price Trends
1.89
Positive
1.61
Positive
1.79
Positive
Market Momentum
0.51
Negative
92.37
Negative
93.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BITF, the sentiment is Positive. The current price of 4.2 is above the 20-day moving average (MA) of 2.27, above the 50-day MA of 1.89, and above the 200-day MA of 1.79, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 92.37 is Negative, neither overbought nor oversold. The STOCH value of 93.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BITF.
Bitfarms Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | 190.15M | -48.08 | 0.00% | ― | 0.00% | -90.34% | |
60 Neutral | $2.32B | ― | -15.17% | ― | 46.65% | 44.91% | |
60 Neutral | 5.49B | 27.26 | 33.98% | ― | 2.40% | 27.15% | |
56 Neutral | 156.32M | -267.39 | 0.00% | ― | -20.75% | -84.00% | |
51 Neutral | 1.24B | -17.16 | 5.13% | ― | 7.57% | 40.56% | |
46 Neutral | 43.76M | -1.61 | -147.31% | ― | 34.56% | -161.07% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
TSE:BITF
Bitfarms
4.20
1.52
56.72%
TSE:HODL
Sol Strategies
8.62
7.14
482.43%
HIVE
HIVE Digital Technologies
3.88
0.89
29.77%
TSE:NDA
Neptune Digital Assets
1.23
0.98
392.00%
TSE:HUT
Hut 8
52.04
37.04
246.93%
BBKCF
BIGG Digital Assets
0.09
-0.01
-10.00%
Bitfarms Corporate Events
Business Operations and StrategyExecutive/Board Changes
Bitfarms Strengthens Board with Former AWS Executive to Boost HPC/AI Expansion
Positive
Aug 18, 2025
Bitfarms has appointed Wayne Duso, a former AWS executive with extensive experience in enterprise technologies and cloud storage systems, to its Board of Directors. This strategic move aligns with Bitfarms’ focus on expanding its high-performance computing and AI business across North America, leveraging Duso’s expertise to capitalize on the growing demand for HPC/AI infrastructure, thereby driving sustainable growth and value for the company and its stakeholders.
The most recent analyst rating on (TSE:BITF) stock is a Buy with a C$6.00 price target. To see the full list of analyst forecasts on Bitfarms stock, see the TSE:BITF Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.