Bitfarms (BITF, Financial) has reported a notable pivot in its strategic direction, marked by a Q1 loss of 7 cents per share on revenues of $67 million, surpassing expectations of $64.96 million. This compares to a 2-cent loss per share in the previous year. By mid-May, the company held 1,166 bitcoins.
CEO Ben Gagnon highlighted significant developments, including the profitable sale of its Paraguayan mining site, Yguazu, and the acquisition of two large power campuses in Pennsylvania. These moves have not only optimized Bitfarms' energy portfolio but also positioned it to deepen its U.S. presence and enhance its high-performance computing (HPC) capabilities. The company is building a strong foundation with a focus on free cash flow and low capital expenditure in its mining activities.
H.C. Wainwright reiterated a Buy rating with a $4 price target, noting Bitfarms' strategic shift to focus on energy and computing infrastructure related to AI, while maintaining a leading mining fleet. Alliance Global Partners emphasized a 33% year-over-year revenue increase, driven by an enhanced hash rate and favorable bitcoin pricing, while securing a $300 million loan for its Panther Creek site.
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 $3.28 with a high estimate of $4.50 and a low estimate of $2.00. The average target implies an upside of 199.66% from the current price of $1.10. 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 $2.49, suggesting a upside of 127.4% from the current price of $1.095. 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: May 14, 2025
- Revenue: $67 million, up 33% year over year.
- Bitcoin Mining Revenue: $65 million.
- Gross Mining Profit: $28 million, representing a 43% direct mining margin.
- Net Loss: $36 million or $0.07 per share.
- Adjusted EBITDA: $15 million or 23% of revenue.
- Direct Mining Cost per Bitcoin: $47,800.
- All-in Cash Cost to Mine a Bitcoin: $72,300.
- Revenue per Bitcoin Earned: $92,500.
- Profit per Bitcoin: Just over $20,000.
- Total Liquidity: Approximately $150 million as of May 13th.
- Projected Free Cash Flow from Mining Operations: About $8 million per month.
- Projected CapEx Needs for 2025: Under $100 million, excluding HPC and AI capital needs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bitfarms Ltd (BITF, Financial) is strategically pivoting from solely Bitcoin mining to becoming a leading North American energy and compute infrastructure company, focusing on high-performance computing (HPC) and artificial intelligence (AI).
- The company has secured up to $300 million in financing from Macquarie Group to support the development of its Panther Creek campus, validating its HPC and AI development thesis.
- Bitfarms Ltd (BITF) has made significant progress in rebalancing its portfolio towards the United States, acquiring strategic energy campuses and power generation facilities in Pennsylvania.
- The company has completed a transformative fleet upgrade, improving its Bitcoin mining efficiency and reducing operating costs, with over 94% of its purchased miners now installed.
- Bitfarms Ltd (BITF) has a strong financial foundation with steady mining economics, no plans for additional large miner purchases, and minimal impact expected from potential tariffs.
Negative Points
- The company faces challenges in securing the necessary infrastructure and client commitments for its HPC and AI business, with ongoing development milestones required to access the full $300 million financing.
- Bitfarms Ltd (BITF) reported a net loss of $36 million for the first quarter, including $17 million in impairment charges related to its Argentine operation.
- The company has divested its Iguazu Paraguay Bitcoin mining site, which was misaligned with its new HPC and US-centric strategy, indicating a shift away from certain international operations.
- There is uncertainty regarding the timeline and costs associated with the development of the Panther Creek campus and other US sites, as the company is still finalizing its master site plans.
- Bitfarms Ltd (BITF) has decided to stop publishing monthly Bitcoin production reports, which may reduce transparency for investors focused on its Bitcoin mining operations.
