Bitfarms (BITF) AI Stock Analysis

• Market Cap: $778.35M
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: 30.06%
• EPS Growth: 46.14%
• Country: CA
• Employees: 170
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Capital Markets
• EPS (TTM): -0.10
• Shares Outstanding: 555,961,850
• 10 Day Avg. Volume: 1,909,150
• 30 Day Avg. Volume: 1,328,412
• PEG Ratio: 0.16
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.16
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: -24.94
• Enterprise Value/Ebitda: 3.35
• 1Y Price Target: $4.70
• Price Target Upside: 221.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: C$1.50 ▲(2.74%Upside)

Bitfarms' overall score reflects significant financial challenges due to negative profitability and cash flow issues. However, strategic initiatives and substantial financing for U.S. expansion into HPC and AI sectors provide a positive outlook, supported by recent corporate approvals and market engagement.

Positive Factors

Business Transformation

Bitfarms is rapidly transforming from an international pure-play BTC mining company to a U.S.-focused energy and compute business focused on HPC/AI data center development.

Fleet Efficiency

Transformative fleet upgrades have driven a 45% improvement in Bitfarms’ overall fleet efficiency, enhancing computing power and reducing costs.

Negative Factors

Equity Valuation

The BTC mining business remains significantly undervalued with an implied equity valuation much lower than the group average.

Tenant Acquisition

It could be several quarters before Bitfarms secures an HPC/AI tenant at Panther Creek.

Bitfarms Business Overview & Revenue Model

Company Description

Bitfarms Ltd. is a publicly traded Bitcoin mining company that operates and develops blockchain infrastructure focused on cryptocurrency mining. Established in Canada, Bitfarms provides computing power to cryptocurrency networks such as Bitcoin, securing transactions and earning rewards for its services. The company is known for its vertically-integrated approach, managing all aspects of mining operations from site development and power contracts to mining and maintenance.

How the Company Makes Money

Bitfarms generates revenue primarily through the mining of Bitcoin. The company operates large-scale mining facilities equipped with specialized hardware to solve complex cryptographic puzzles, validating and securing transactions on the Bitcoin network. In return for this service, Bitfarms earns Bitcoin as a reward, which can then be sold on the market to generate revenue. Key revenue streams include the sale of mined Bitcoin and potential appreciation in the value of Bitcoin. Additionally, Bitfarms may engage in strategic partnerships or agreements to enhance its mining operations or reduce costs, such as securing low-cost energy contracts for its facilities, which can significantly impact profitability.

Bitfarms Financial Statement Overview

Summary

Bitfarms faces substantial financial challenges with negative profitability metrics and cash flow issues, despite a stable balance sheet with low leverage and strong equity.

Income Statement

Bitfarms has shown significant volatility in its revenue and profitability. The company experienced a substantial negative gross profit margin of -10.61% TTM, indicating high costs relative to revenue. The net profit margin remains deeply negative at -40.08%, reflecting ongoing losses. Despite a positive EBITDA margin of 22.61% TTM, the EBIT margin is highly negative at -55.51%, showing operational challenges. Revenue growth from 2024 to TTM is 8.58%, but past instability and negative margins weigh heavily on the score.

Balance Sheet

The balance sheet of Bitfarms displays a stable equity base, with a Debt-to-Equity ratio of 0.04 TTM, indicating low leverage which is a positive. The Return on Equity is negative due to net losses, but the Equity Ratio is strong at 85.54% TTM, suggesting financial stability. The company holds a significant amount of cash, enhancing liquidity. Although operational losses are concerning, the low leverage and high equity ratio bolster the balance sheet score.

Cash Flow

Cash flow analysis reveals significant challenges for Bitfarms. Operating cash flow is negative, and free cash flow has deteriorated with a severe decline of -1.41% from 2024 to TTM. The operating cash flow to net income ratio is negative, and the free cash flow to net income ratio is highly negative, indicating poor cash generation relative to losses. These factors result in a low cash flow score.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	192.88M	146.37M	-8.38M	169.20M	34.79M
Gross Profit	-32.36M	-21.50M	-140.29M	110.83M	-1.90M
EBITDA	74.35M	-7.73M	-103.47M	70.53M	1.47M
Net Income	-54.06M	-104.04M	-239.05M	22.13M	-16.29M
Balance Sheet
Total Assets	667.62M	378.73M	343.10M	542.59M	51.70M
Cash, Cash Equivalents and Short-Term Investments	146.84M	84.04M	35.44M	191.30M	5.95M
Total Debt	23.41M	19.87M	65.01M	84.74M	28.37M
Total Liabilities	59.62M	83.96M	87.53M	120.00M	36.26M
Stockholders Equity	608.00M	294.76M	255.57M	422.58M	15.45M
Cash Flow
Free Cash Flow	-480.42M	-47.71M	-158.73M	-230.43M	2.74M
Operating Cash Flow	-140.56M	23.60M	36.25M	-37.17M	7.22M
Investing Cash Flow	-178.39M	-58.34M	-155.01M	-215.15M	-3.60M
Financing Cash Flow	294.46M	87.88M	24.01M	371.99M	185.00K

Bitfarms Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.46 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.33, and below the 200-day MA of 1.97, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BITF.

Bitfarms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HODL	65 Neutral	C$351.98M	117.14	4.09%	―	3189.96%	―
HIVE	62 Neutral	$642.91M	―	-15.83%	―	3.95%	34.55%
Sector *	61 Neutral	C$14.80B	6.52	22.27%	5.47%	30.07%	-22.51%
NDA	56 Neutral	C$204.62M	60.77	5.61%	―	-9.36%	―
HUT	54 Neutral	C$3.51B	3.76	-6.53%	―	15.44%	-134.04%
BITF	54 Neutral	$778.35M	―	-16.30%	―	30.06%	46.14%

Bitfarms Corporate Events

Bitfarms Announces Shareholder Meeting Results and Strategic Approvals

Bitfarms Ltd. announced the results of its annual general and special meeting of shareholders, where all business items were approved, including the election of six directors and the reappointment of PricewaterhouseCoopers LLP as auditors. Shareholders also approved a new omnibus incentive plan and a potential future consolidation of common shares, indicating strategic moves to streamline operations and enhance shareholder value.

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.

Bitfarms Reports Q1 2025 Revenue Growth and Strategic U.S. Expansion

Bitfarms reported a 33% year-over-year increase in revenue for Q1 2025, reaching $67 million, despite a decrease in gross mining margin from 63% to 43%. The company has secured a $300 million private debt facility with Macquarie Group to fund its HPC project at Panther Creek, highlighting its strategic pivot towards HPC and AI data centers in the U.S. This move is expected to bolster Bitfarms’ financial position and operational capabilities, positioning it for growth in the HPC sector while maintaining its Bitcoin mining operations.

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.

Bitfarms to Announce Q1 2025 Financial Results

Bitfarms Ltd. announced it will release its first quarter 2025 financial results on May 14, 2025, before the market opens, followed by a conference call at 8:00 am EST. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

Bitfarms to Engage in Key Industry Conferences

Bitfarms Ltd. has announced its participation in several upcoming investor and industry conferences, including Consensus 2025 in Toronto, AIM Summit London, and BTC 2025 in Las Vegas. This participation underscores Bitfarms’ commitment to engaging with industry stakeholders and investors, potentially enhancing its market presence and fostering new business opportunities.

Bitfarms Secures $300 Million for HPC Expansion at Panther Creek

Bitfarms has secured a $300 million private debt facility from a division of Macquarie Group to fund the development of a high-performance computing (HPC) data center at its Panther Creek location. This strategic financing is expected to accelerate the buildout at Panther Creek and position Bitfarms as a leader in large-scale HPC data center projects amidst growing demand driven by the AI revolution. The company reported an operational hashrate of 19.5 EHuM and a fleet efficiency of 19 w/TH for April 2025, with 268 Bitcoin earned, reflecting a slight decrease from the previous month.