Bitfarms (BITF) AI Stock Analysis

• Market Cap: $2.15B
• Dividend Yield: N/A
• Average Volume (3M): 6.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.83
• Revenue Growth: 51.69%
• EPS Growth: 28.00%
• Country: CA
• Employees: 170
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.11
• Shares Outstanding: 565,625,400
• 10 Day Avg. Volume: 5,111,137
• 30 Day Avg. Volume: 6,170,166
• PEG Ratio: 0.17
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 3.18
• P/FCF Ratio: -1.28
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 7.06
• Enterprise Value/Gross Profit: -253.49
• Enterprise Value/Ebitda: 99.58
• 1Y Price Target: $8.27
• Price Target Upside: 117.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -0.33
• Revenue Forecast (FY): $380.41M

• Rating: 48 Neutral
• Price Target: C$4.00 ▲(5.26% Upside)

Bitfarms' overall score is primarily impacted by its poor financial performance, with consistent losses and negative cash flows. While technical analysis and valuation scores are moderate, the company's strategic shift towards HPC and AI infrastructure, supported by strong corporate events, provides some optimism for future growth.

Positive Factors

Strategic Transition

Bitfarms' shift from Bitcoin mining to HPC and AI infrastructure positions it to capitalize on growing data center demand, enhancing long-term growth prospects.

Financial Flexibility

Strong financial flexibility allows Bitfarms to invest in strategic initiatives and weather industry volatility, supporting sustainable growth.

Revenue Growth

Significant revenue growth indicates successful business strategies and market expansion, contributing to long-term financial health.

Negative Factors

Operating Losses

Persistent operating losses highlight inefficiencies and cost management challenges, potentially hindering profitability and growth.

High Production Costs

High production costs reduce margins and profitability, posing a risk to financial sustainability in a competitive mining industry.

Negative Cash Flows

Negative cash flows limit Bitfarms' ability to reinvest in growth and manage debt, affecting long-term financial stability.

Bitfarms Business Overview & Revenue Model

Company Description

Bitfarms Ltd. is a leading cryptocurrency mining company primarily focused on Bitcoin mining. Headquartered in Canada, Bitfarms operates several mining facilities equipped with state-of-the-art technology to optimize efficiency and reduce costs. The company is vertically integrated, managing its own infrastructure and energy resources to ensure operational sustainability. Bitfarms is committed to maintaining a low environmental impact while contributing to the decentralized economy through its mining operations.

How the Company Makes Money

Bitfarms generates revenue primarily through the mining of Bitcoin, which involves using computational power to solve complex mathematical problems, thereby validating transactions on the Bitcoin network and earning block rewards and transaction fees. The company's revenue model is significantly influenced by the price of Bitcoin, as higher Bitcoin prices lead to increased earnings per mined coin. Additionally, Bitfarms benefits from its strategic partnerships with energy providers, allowing it to secure lower electricity rates, which is a critical factor in maintaining profitability in the competitive mining sector. The company may also explore revenue streams through the sale of Bitcoin holdings, as well as potential ventures into other cryptocurrency mining or blockchain-related services.

Bitfarms Financial Statement Overview

Summary

Bitfarms is facing substantial financial challenges, with consistent losses and negative cash flows. Despite revenue growth, inefficiencies and high operational costs overshadow financial performance. The balance sheet is stable with low leverage, but profitability and cash flow issues need addressing.

Income Statement

Bitfarms shows a negative trend in profitability with significant losses in net income and gross profit margins over the TTM period. Despite a revenue growth rate of 9.93% in the TTM, the company struggles with negative EBIT and EBITDA margins, indicating operational inefficiencies and challenges in cost management.

Balance Sheet

The balance sheet reflects a relatively low debt-to-equity ratio of 0.12, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is stable, but the overall financial health is weakened by persistent losses.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is positive, suggesting some cash flow efficiency, but overall cash flow performance is poor, with declining free cash flow growth and negative operating cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	270.06M	192.88M	146.37M	142.43M	169.49M	34.70M
Gross Profit	-7.52M	-32.36M	-21.50M	10.52M	111.12M	2.87M
EBITDA	19.14M	74.35M	-7.73M	-106.42M	70.53M	1.47M
Net Income	-130.32M	-54.06M	-104.04M	-175.64M	22.13M	-16.29M
Balance Sheet
Total Assets	801.28M	667.62M	378.73M	343.10M	542.59M	51.70M
Cash, Cash Equivalents and Short-Term Investments	258.23M	146.84M	84.04M	35.44M	191.63M	5.95M
Total Debt	73.68M	23.41M	19.87M	65.01M	84.74M	28.37M
Total Liabilities	189.92M	59.62M	83.96M	87.70M	183.58M	36.26M
Stockholders Equity	611.36M	608.00M	294.76M	255.40M	359.01M	15.45M
Cash Flow
Free Cash Flow	-458.46M	-480.42M	-177.02M	-317.40M	-230.43M	2.74M
Operating Cash Flow	-307.61M	-140.56M	-105.71M	-122.42M	-37.17M	7.22M
Investing Cash Flow	210.66M	-178.39M	70.97M	3.66M	-215.15M	-3.60M
Financing Cash Flow	135.88M	294.46M	87.88M	24.01M	371.99M	185.00K

Bitfarms Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BITF, the sentiment is Negative. The current price of 3.8 is below the 20-day moving average (MA) of 4.09, below the 50-day MA of 5.08, and above the 200-day MA of 2.56, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 12.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BITF.

Bitfarms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HODL	65 Neutral	C$88.73M	-22.25	-6.67%	―	―	-90.34%
NDA	56 Neutral	C$78.80M	―	―	―	-20.75%	-84.00%
HUT	56 Neutral	C$7.16B	35.55	18.75%	―	7.46%	-4.30%
HIVE	55 Neutral	$1.00B	―	-7.18%	―	60.71%	-52.29%
BIGG	52 Neutral	C$26.26M	―	-63.28%	―	36.80%	9.34%
BITF	48 Neutral	$2.15B	―	-17.06%	―	51.69%	28.00%

Bitfarms Corporate Events

Bitfarms Advances AI Infrastructure with Strong Financial Backing

Bitfarms reported a revenue of $69 million from continuing operations and successfully closed a $588 million convertible notes offering. The company is converting its Washington site to support advanced liquid cooling for GB300s and plans to lead the industry in developing infrastructure for Nvidia’s Vera Rubin GPUs. With substantial financial flexibility and a strong energy portfolio, Bitfarms is well-positioned to advance its HPC/AI infrastructure across North America. The company has also made executive team updates, including the appointment of Jonathan Mir as CFO and Wayne Duso to the Board of Directors, and initiated a corporate share buyback program.

Bitfarms to Transform Washington Site for AI and HPC by 2026

Bitfarms Ltd. announced plans to convert its Washington State Bitcoin mining facility to support high-performance computing and AI workloads, targeting completion by December 2026. The conversion will feature advanced liquid cooling and support for Nvidia GB300 GPUs, with a fully funded agreement of $128 million to secure critical IT equipment. This strategic shift is expected to provide a strong cash flow foundation, potentially generating more net operating income than Bitcoin mining, as the company transitions away from Bitcoin mining in 2026 and 2027.

Bitfarms to Announce Q3 2025 Financial Results and Host Conference Call

Bitfarms Ltd. has announced it will release its third quarter 2025 financial results on November 13, 2025, before the market opens, followed by a conference call at 8:00 am EST. This announcement highlights Bitfarms’ ongoing commitment to transparency and engagement with stakeholders, as it continues to expand its digital infrastructure footprint in the U.S., which could further strengthen its position in the high-performance computing and Bitcoin mining industry.

Bitfarms Secures $588 Million in Convertible Notes to Boost Infrastructure Development

Bitfarms Ltd. has successfully closed a US$588 million offering of convertible senior notes, including an $88 million option exercised by initial purchasers. This capital raise strengthens Bitfarms’ balance sheet, providing over US$1 billion in financial resources, which will support the company’s infrastructure developments in North America. The offering introduces high-quality institutional partners to Bitfarms’ capital structure, enhancing its market positioning and operational flexibility.

Bitfarms Upsizes Convertible Notes Offering to $500 Million

Bitfarms Ltd. has announced the pricing of its upsized offering of US$500 million in convertible senior notes, which will mature in 2031. The capital raised will be used for general corporate purposes and to purchase cash-settled capped calls to mitigate economic dilution. This strategic financial move enhances Bitfarms’ liquidity and positions it to better manage its capital structure, potentially increasing its competitiveness in the digital infrastructure sector.

Bitfarms Announces $300 Million Convertible Notes Offering

Bitfarms Ltd. has announced a proposed offering of US$300 million in convertible senior notes due 2031, with an option for initial purchasers to acquire an additional US$60 million. The proceeds from this offering are intended for general corporate purposes and to fund capped call transactions aimed at mitigating economic dilution, with a cap set at a 125% premium to the last reported sale price of Bitfarms’ common shares. This strategic financial move is expected to enhance Bitfarms’ market positioning by potentially reducing economic dilution and stabilizing share prices, thereby benefiting stakeholders.

Bitfarms Appoints New CFO as Part of Strategic Growth Plan

Bitfarms Ltd. has announced the retirement of its Chief Financial Officer, Jeff Lucas, and the appointment of Jonathan Mir as his successor. Jonathan Mir, with over 25 years of capital markets experience in energy infrastructure, will join Bitfarms as CFO effective October 27, 2025, bringing invaluable expertise to support the company’s transition to a North American HPC/AI infrastructure company. CEO Ben Gagnon expressed gratitude for Jeff Lucas’s contributions, highlighting his role in transforming Bitfarms from a Bitcoin miner to a digital infrastructure leader. The leadership change is expected to bolster Bitfarms’ growth strategy in Pennsylvania, Quebec, and Central Washington, with a strong financial position and significant capital available for future projects.