H.C. Wainwright continues to recommend purchasing shares of Bitfarms (BITF, Financial), maintaining a price target of $4 after the company's first-quarter financial report. The firm notes that Bitfarms is transitioning from a global bitcoin mining entity to a U.S.-centered energy and computing enterprise, with a focus on developing artificial intelligence data centers. Despite this shift, Bitfarms continues to operate one of the largest and most efficient mining operations.
Looking to the future, the firm anticipates substantial growth in Bitfarms' bitcoin mining sector by 2025, highlighting that it is currently undervalued. This optimistic outlook suggests potential gains for investors considering the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Bitfarms Ltd (BITF, Financial) is $3.25 with a high estimate of $4.50 and a low estimate of $2.00. The average target implies an upside of 188.89% from the current price of $1.13. More detailed estimate data can be found on the Bitfarms Ltd (BITF) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Bitfarms Ltd's (BITF, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Bitfarms Ltd (BITF, Financial) in one year is $2.18, suggesting a upside of 93.78% from the current price of $1.125. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Bitfarms Ltd (BITF) Summary page.
BITF Key Business Developments
Release Date: March 27, 2025
- Revenue: $56 million in Q4 2024, up 21% from Q3.
- Bitcoin Mined: 654 BTC in Q4 2024.
- Direct Mining Profit: $26 million, representing a 47% margin.
- Net Income: $15 million or $0.03 per share in Q4 2024.
- Adjusted EBITDA: $14 million or 25% of revenue in Q4 2024.
- Cash and Liquidity: Approximately $135 million as of March 26, 2025.
- CapEx Requirements: Reduced to less than $100 million for 2025.
- Hash Rate: 18.6 exahash under management.
- Energy Capacity: Increased by over 90% to 461 megawatts.
- Hash Cost: Reduced to roughly $22 per petahash.
- Operating Loss: $16 million in Q4 2024.
- Direct Mining Cost per Bitcoin: $40,800 in Q4 2024.
- All-in Cash Cost to Mine Bitcoin: $60,800 in Q4 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bitfarms Ltd (BITF, Financial) has significantly increased its hash rate to 18.6 exahash, improving efficiency by 45% and reaching its Q2 2025 efficiency guidance ahead of schedule.
- The company has expanded its energy capacity by over 90% to 461 energized megawatts per day, with a pipeline of over 1.4 gigawatts, primarily based in the US.
- Bitfarms Ltd (BITF) has reduced its hash cost by nearly 50%, providing a foundation for higher profitability and cash flow through 2026.
- The company has completed a transformative acquisition of Stronghold Digital Mining and a strategic sale of its Yguazu site, enhancing its portfolio and capitalizing on US growth opportunities.
- Bitfarms Ltd (BITF) has initiated a new Bitcoin One strategy, building on the success of its synthetic caudal program, which achieved a 135% return in US dollar terms.
Negative Points
- The company faces regulatory challenges in expanding its energy capacity, with approvals potentially taking 12 to 36 months.
- Bitfarms Ltd (BITF) has no immediate plans for large miner purchases in 2025 or 2026, which may limit its ability to quickly scale operations if market conditions change.
- The transition to HPC and AI infrastructure requires significant investment and time, with feasibility studies and customer due diligence processes potentially delaying monetization.
- The company's focus on US-based operations may lead to further divestment of profitable sites in Latin America, impacting its geographic diversification.
- Bitfarms Ltd (BITF) is exposed to potential fluctuations in Bitcoin prices and mining economics, which could affect its profitability and cash flow projections.
