H.C. Wainwright & Co. analyst Mike Colonnese has added Bitfarms inventory to the agency’s high picks within the Bitcoin mining sector for 2025, citing robust operational enhancements and a shift towards high-performance computing and AI infrastructure.
In a analysis word following Bitfarms’ This autumn 2024 earnings report and convention name, Colonnese stated the market is “considerably undervaluing” the corporate’s scaled-up mining operations and rising AI technique.
H.C. Wainwright reiterated its Purchase score on Bitfarms with a $3.50 per share worth goal, implying upside potential of greater than thrice from its present worth of round $0.98.
This autumn recap
Bitfarms reported on March 27 This autumn 2024 outcomes. Income of $56.2 million was up 25% quarter-over-quarter and consistent with analyst expectations. Self-mining income rose to $54.6 million, pushed by greater common Bitcoin (BTC) costs and a 13% improve in deployed hashrate to 12.8 EH/s by year-end. Gross mining revenue improved to $25.8 million with a 47.3% margin, up from 38.4% within the earlier quarter.
Whereas Bitcoin manufacturing dipped to 654 BTC as a consequence of rising community problem, the corporate nonetheless posted web revenue of $15.2 million, or $0.03 per share, a robust rebound from a web lack of $36.6 million in Q3. Adjusted EBITDA practically tripled to $14.3 million.
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Bitfarms has grown its hashrate capability to 18.6 EH/s, practically tripling its computing energy from 6.5 EH/s on the finish of 2023. Fleet upgrades have additionally improved total effectivity by 45%, with hash prices now averaging round $20–$22 per petahash, notably under the present market hash costs of ~$50/PH.
Regardless of this, Bitfarms’ inventory is down 57% since November, in comparison with a 7% decline within the Nasdaq index over the identical time interval. Colonnese sees the corporate’s present valuation of ~$25 million per deployed EH as a steep low cost to friends, who commerce nearer to $85 million per EH.
Power belongings to energy AI progress
Wanting past mining, Bitfarms is positioning itself as a North American power and compute firm.
Administration stated on the decision that there are not any instant plans to buy extra ASIC miners, and that future progress will give attention to constructing power infrastructure to assist AI and HPC workloads.
This shift features a latest acquisition of Stronghold belongings and a sale of its Paraguay-based Yguazu website, rising the U.S. share of its power portfolio from 6% to 33%. Bitfarms now goals to develop to 1.4 GW of whole power capability by 2028, with practically 80% positioned within the U.S.
Colonnese famous that the HPC/AI alternative will not be but mirrored in present projections, and a possible partnership with a hyperscaler might present significant upside.
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