Analyst reiterates ‘Buy’ rating on Bitfarms stock despite selloff



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H.C. Wainwright & Co. analysts reiterated their “Buy” rating on Bitcoin mining company Bitfarms. 

This rating follows a 15% decline in the stock price after Bitfarms announced delays to its year-end 2024 expansion targets, according to a note shared with crypto.news.

While Bitfarms reported positive third-quarter results with revenue growth of 8% to $44.9 million, the company announced it would delay its hash rate goal—measuring its computing power in Bitcoin (BTC) mining — of 21 exahashes per second (EH/s) from late 2024 to early 2025. It also withdrew its 2025 hash rate projection of 35 EH/s, citing logistical setbacks.

Management attributed the delays to construction setbacks, miner shipment delays, and the need for warranty services on underperforming equipment.

According to the analyst note, Bitfarms currently operates at a hash rate of 11.9 EH/s.

Analyst: recent upgrades will positively impact future plans

Despite these issues, analysts noted that Bitfarms has achieved significant upgrades, swapping 50,000 older mining machines with newer, more efficient models across ten data centers.

This upgrade boosted the company’s hash rate capacity by 83% this year and improved fleet efficiency by 40%, reaching 21 joules per terahash, a measure of energy efficiency in mining.

Looking to the future, Bitfarms is assessing options beyond Bitcoin mining, including potential expansion into high-performance computing and artificial intelligence operations.

The company recently acquired new sites in Pennsylvania, positioning itself for further growth in the U.S. Analysts also noted that, despite increasing direct costs for Bitcoin mining due to seasonal and regional energy price fluctuations, Bitfarms achieved a reduction in electricity cost per terahash, reflecting gains in mining efficiency.

For 2024, analysts raised their revenue forecast for Bitfarms to $190.7 million, driven by a positive Bitcoin price trend. However, they lowered their 2025 estimate to $388.9 million, anticipating a slower hash rate expansion than expected.

The analysts remain confident in Bitfarms’ long-term position, reiterating a $4 price target.



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