Analyst reiterates ‘Buy’ rating on Bitfarms stock despite selloff

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

This note follows a 15% drop in 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 results in the third quarter, with revenue growth reaching 8% to $44.9 million, the company announced that it would postpone its hashrate target, which measures computing power in Bitcoin (BTC) mining, to 21 exahashes per second (EH/s). From late 2024 to early 2025. It also withdrew its 2025 hashrate projection of 35 EH/s, citing logistical disruptions.

Management attributed the delays to construction disruptions, miner shipping delays and the need for warranty services for underperforming equipment.

According to the analyst note, Bitfarms is currently operating at a hashrate of 11.9 EH/s.

Analyst: Latest updates will positively affect future plans

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

The upgrade increased the company’s hashrate capacity by 83% this year and increased fleet efficiency by 40% to 21 joules per terahash, a measure of energy efficiency in mining.

Looking ahead, Bitfarms is evaluating options beyond Bitcoin mining, including potential expansion into high-performance computing and artificial intelligence operations.

The company is positioning itself for further growth in the US by recently acquiring new fields in Pennsylvania. Analysts also noted that although direct costs for Bitcoin mining increased due to seasonal and regional energy price fluctuations, Bitfarms achieved a reduction in electricity cost per terahash, reflecting gains. in mining efficiency.

Driven by the positive Bitcoin price trend, analysts increased Bitfarms’ 2024 revenue estimates to $190.7 million. However, they lowered their 2025 forecast to $388.9 million, predicting a slower-than-expected hashrate increase.

Analysts remain confident in Bitfarms’ long-term position and reiterate the $4 price target.