Bitfarms Stock: The Underdog Ready to Roar in AI and Energy!

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In the dusty corners of the Bitcoin mining world, where fortunes are made and lost faster than a tumbleweed in a windstorm, H.C. Wainwright & Co. analyst Mike Colonnese has taken a shine to Bitfarms. He’s tossed this stock into the ring of top contenders for 2025, claiming it’s as undervalued as a rusty old tractor in a shiny new dealership. 🚜💰

After sifting through the ashes of Bitfarms’ Q4 2024 earnings report, Colonnese declared that the market is “significantly undervaluing” this company’s mining operations, which are scaling up like a beanstalk in a fairy tale, and its budding AI strategy. Who knew Bitcoin mining could be so… futuristic? 🤖✨

With a Buy rating firmly in hand and a price target of $3.50 per share, Colonnese is betting on a comeback that could see the stock soar more than three times its current price of around $0.98. It’s like finding a dollar in your old coat pocket—unexpected but oh-so-sweet! 💵

Q4 Recap

On March 27, Bitfarms unveiled its Q4 2024 results, revealing a revenue of $56.2 million—a 25% increase quarter-over-quarter, which is about as exciting as finding out your favorite diner is still open. Self-mining revenue climbed to $54.6 million, thanks to higher Bitcoin prices and a 13% boost in deployed hashrate, now sitting pretty at 12.8 EH/s by year-end. Gross mining profit? A hearty $25.8 million with a 47.3% margin, up from 38.4% in the previous quarter. Not too shabby! 🍔📈

Sure, Bitcoin production dipped to 654 BTC due to network difficulty, but the company still managed to post a net income of $15.2 million, or $0.03 per share. That’s a strong rebound from a net loss of $36.6 million in Q3. Adjusted EBITDA nearly tripled to $14.3 million—talk about a glow-up! 🌟

Bitfarms has cranked its hashrate capacity up to 18.6 EH/s, nearly tripling its computing power from 6.5 EH/s at the end of 2023. Fleet upgrades have improved efficiency by 45%, with hash costs now averaging around $20–$22 per petahash. That’s a steal compared to the current market hash prices of ~$50/PH. It’s like finding a gourmet meal at a fast-food price! 🍔💸

But hold your horses! Despite all this progress, Bitfarms’ stock has taken a nosedive, down 57% since November, while the Nasdaq index only slipped 7%. Colonnese sees the company’s current valuation of ~$25 million per deployed EH as a steep discount compared to peers, who are trading closer to $85 million per EH. It’s like buying a luxury car for the price of a used bicycle! 🚲💔

Energy Assets to Power AI Growth

Looking beyond the dusty mining rigs, Bitfarms is setting its sights on becoming a North American energy and compute powerhouse. Management has made it clear that they’re not rushing to buy more ASIC miners. Instead, they’re focusing on building energy infrastructure to support AI and HPC workloads. Because who doesn’t want to be the cool kid on the block? 😎⚡

This shift includes a recent acquisition of Stronghold assets and a sale of its Paraguay-based Yguazu site, boosting the U.S. share of its energy portfolio from 6% to 33%. Bitfarms now aims to grow to 1.4 GW of total energy capacity by 2028, with nearly 80% located in the U.S. It’s like they’re planting seeds for a future garden of tech! 🌱🌍

Colonnese noted that the HPC/AI opportunity is still hiding in the shadows of current projections, and a potential partnership with a hyperscaler could provide a meaningful upside. It’s like waiting for the sun to rise after a long, dark night. 🌅

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2025-03-27 23:37