Bitfarms (BITF) AI Stock Analysis

• Market Cap: $611.56M
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 30.06%
• EPS Growth: 46.14%
• Country: CA
• Employees: 170
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Capital Markets
• EPS (TTM): -0.10
• Shares Outstanding: 555,961,850
• 10 Day Avg. Volume: 1,021,488
• 30 Day Avg. Volume: 1,288,072
• PEG Ratio: <0.01
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.54
• Enterprise Value/Market Cap: 0.20
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: -3.71
• Enterprise Value/Ebitda: 1.03
• 1Y Price Target: $4.46
• Price Target Upside: 309.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: C$1.00 ▼(-8.26%Downside)

Bitfarms' overall stock score is led by its strategic initiatives and positive sentiment from its earnings call, despite financial and technical challenges. The company's transformation into HPC and AI sectors is promising, but financial instability and bearish technical indicators weigh heavily on the score.

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.

Strategic Positioning

Bitfarms is strategically focusing on building energy infrastructure in the U.S. to capitalize on the growing demand from the HPC/AI market.

Negative Factors

Market 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 blockchain infrastructure company that operates one of the largest cryptocurrency mining operations globally. Based in Canada, the company is primarily engaged in the mining of Bitcoin, leveraging its proprietary data centers and advanced computing technology to validate transactions on the Bitcoin network. Bitfarms focuses on sustainable and efficient mining practices, utilizing renewable energy sources to power its facilities.

How the Company Makes Money

Bitfarms makes money primarily through the mining of cryptocurrencies, particularly Bitcoin. The company generates revenue by solving complex cryptographic puzzles that validate transactions on the Bitcoin network, a process known as mining. In return for this computational work, Bitfarms earns newly minted Bitcoins and transaction fees. The value of these Bitcoins is then realized when they are sold on the open market. Additionally, the company benefits from its strategic location in Quebec, Canada, where it has access to low-cost renewable energy, improving its profitability margins. Bitfarms also occasionally engages in selling excess mining capacity or providing hosting services to third parties as supplementary revenue streams.

Bitfarms Financial Statement Overview

Summary

Bitfarms faces significant financial challenges with negative margins and high variability in revenue and earnings. While the balance sheet shows a stable equity position, profitability remains a key issue. Cash flow reveals dependency on external financing and negative free cash flow, posing risks to sustainability.

Income Statement

Bitfarms has experienced significant volatility in its income statement. The gross profit margin is negative, indicating inefficiency in generating profits from its revenues. The net profit margin is also negative, resulting from substantial net losses over recent years. Revenue growth is inconsistent, with a large increase in 2024 following a decline in 2023. EBIT and EBITDA margins are negative, highlighting operational challenges and significant costs relative to revenue.

Balance Sheet

Bitfarms maintains a relatively high equity ratio, reflecting a strong capital base compared to its total assets. The debt-to-equity ratio is low, suggesting a conservative use of debt. However, negative return on equity indicates that the company is struggling to generate profits from its equity investments, impacting overall financial stability.

Cash Flow

The cash flow situation is concerning, with negative free cash flow growth and substantial capital expenditures outweighing operating cash inflows. The company is heavily reliant on financing activities to support its cash needs. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting earnings into cash.

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: Negative
• Last Price: 1.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1.09 is below the 20-day moving average (MA) of 1.16, below the 50-day MA of 1.32, and below the 200-day MA of 2.06, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 49.61 is Neutral, 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 *	67 Neutral	$16.51B	11.23	9.71%	3.96%	11.61%	-10.70%
HODL	65 Neutral	C$381.87M	131.43	4.09%	―	3189.96%	―
NDA	56 Neutral	C$177.93M	54.23	5.61%	―	-9.36%	―
HIVE	50 Neutral	$441.75M	―	-15.83%	―	27.99%	90.99%
HUT	48 Neutral	C$2.50B	3.76	-6.53%	―	15.44%	-134.04%
BITF	47 Neutral	$611.56M	―	-16.30%	―	30.06%	46.14%

Bitfarms Corporate Events

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.

Bitfarms Secures $300 Million Funding for Panther Creek Data Center Development

Bitfarms has entered into an initial agreement with Macquarie Equipment Capital, Inc. for a private debt facility of up to $300 million to fund the development of its Panther Creek data center in Pennsylvania. This partnership with Macquarie, a major infrastructure investor, is expected to accelerate Bitfarms’ project development and strengthen its position in the HPC market, particularly in light of the growing demand for AI-related infrastructure.

Bitfarms Expands U.S. Presence with Strategic Acquisition and Operational Efficiency Gains

Bitfarms Ltd., a global energy and compute infrastructure company, reported a productive March 2025, marked by the acquisition of Stronghold Digital Mining and the sale of its Yguazu data center in Paraguay. These strategic moves aim to rebalance its portfolio towards the U.S., enhance operational efficiency, and diversify into high-performance computing and artificial intelligence. The company also appointed new executives to advance its HPC/AI strategy and reported a 21% increase in operational hashrate, achieving its Q2 efficiency target ahead of schedule. These developments are expected to strengthen Bitfarms’ market position and growth potential in the U.S.

Bitfarms’ Strategic Shift: Q4 2024 Results and Future Plans

Bitfarms reported a 21% year-over-year increase in revenue for Q4 2024, reaching $56 million, despite a decrease in gross mining margin. The company has significantly improved its efficiency and expanded its capacity, highlighted by the acquisition of Stronghold Digital Mining and the sale of its Yguazu data center. These strategic moves are part of Bitfarms’ efforts to diversify its revenue streams, reduce dependency on Bitcoin price volatility, and capitalize on the growing demand for AI computing. The company aims to secure long-term cash flows and enhance shareholder value through its focus on U.S. energy and HPC infrastructure.