Key Points
- Despite a 15% stock price drop and delays to expansion targets, H.C. Wainwright & Co. analysts maintain a “Buy” rating on Bitfarms.
- Bitfarms has upgraded its mining machines, improving efficiency and is exploring expansion beyond Bitcoin mining.
Analysts from H.C. Wainwright & Co. have maintained their “Buy” rating for Bitfarms, a prominent company involved in Bitcoin mining.
This decision comes in the wake of a 15% drop in the company’s stock price. Bitfarms recently announced that it would be delaying its expansion targets for the end of 2024.
Expansion Delays and Positive Q3 Results
Despite reporting a positive third quarter with an 8% revenue growth, reaching $44.9 million, Bitfarms revealed delays in its hash rate goal.
The company’s hash rate goal, a measure of its computing power in Bitcoin mining, was moved from late 2024 to early 2025. Bitfarms also withdrew its 2025 hash rate projection of 35 exahashes per second (EH/s), citing logistical issues.
These issues included construction setbacks, delays in miner shipments, and the need for warranty services for underperforming equipment. Currently, Bitfarms operates at a hash rate of 11.9 EH/s.
Future Plans and Upgrades
Analysts highlighted Bitfarms’ significant upgrades despite these challenges. The company replaced 50,000 older mining machines with newer, more efficient models across ten data centers.
These upgrades have boosted the company’s hash rate capacity by 83% this year and improved fleet efficiency by 40%. Bitfarms is now assessing options beyond Bitcoin mining, including potential expansion into high-performance computing and artificial intelligence operations.
The company has recently acquired new sites in Pennsylvania, positioning itself for further growth in the U.S. Despite increasing direct costs for Bitcoin mining due to seasonal and regional energy price fluctuations, Bitfarms managed to reduce its electricity cost per terahash, indicating gains in mining efficiency.
For 2024, analysts have increased their revenue forecast for Bitfarms to $190.7 million, driven by a positive Bitcoin price trend. However, their 2025 estimate was lowered to $388.9 million, anticipating a slower hash rate expansion than expected.
Despite these challenges, the analysts remain confident in Bitfarms’ long-term position and maintain a $4 price target.
