HC Wainwright & Co. Analyst Mike Colonnese added BitFarms shares to the corporate’s high decide within the Bitcoin mining sector in 2025.
In a analysis word following Bitfarms’ fourth quarter 2024 income report and convention name, Colonnese stated the market is “considerably underestimating” the corporate’s contraction mining operations and rising AI methods.
HC Wainwright has repeatedly reiterated BitFarms buy scores with a goal of $3.50 per share.
This fall Abstract
BitFarms was reported on March twenty seventh within the fourth quarter of 2024. Income of $56.2 million rose 25% quarterly, in step with analyst expectations. Self-employed revenues rose to $54.6 million, as the common Bitcoin (BTC) value was excessive and the hashrate rolled out by the top of the yr elevated by 13% to 12.8 EH/s. Complete mining revenue improved to $25.8 million at a margin of 47.3% from 38.4% within the final quarter.
Bitcoin manufacturing was immersed in 654 BTC because the community’s issue elevated, however the firm nonetheless recorded web revenue of $15.2 million, or $0.03 per share. The adjusted EBITDA practically tripled to $14.3 million.
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BitFarms elevated its hashrate capability to 18.6 EH/s, tripling its computing energy from 6.5 EH/s on the finish of 2023. The fleet improve has improved general effectivity by 45%, with hash prices at the moment averaged between $20-22 per Petahash, beneath the present market value.
Regardless of this, Bitfarms inventory has fallen 57% since November, in comparison with a 7% decline within the NASDAQ index over the identical interval. Colonnese sees the corporate’s present valuation as a sudden low cost to friends buying and selling practically $85 million per EH, at round $25 million per EH.
Power belongings to advertise AI development
Past mining, Bitfarms has established itself as a North American power and computing firm.
Administration stated there isn’t a speedy plan to purchase extra ASIC miners, and future development will deal with constructing power infrastructure to assist AI and HPC workloads.
This shift contains current acquisitions of base belongings and the sale of the Paraguay-based Yguazu web site, which can enhance the US share of the power portfolio from 6% to 33%. BitFarms is at the moment aiming to develop to 1.4 GW whole power capability by 2028, with practically 80% within the US.
Colonnese famous that HPC/AI alternatives haven’t but been mirrored in present forecasts, and that potential partnerships with HyperScaler can present significant advantages.
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