Bitcoin mining analyst on Bitfarms: ‘CEO overhang now lifted’

Despite recent acquisition attempts and personnel changes, HC Wainwright analysts believe Bitfarms has a bright future.

On Wednesday, Bitcoin mining company Bitfarms hosted a virtual fireside chat featuring newly appointed CEO Ben Gagnon and CFO Jeff Lucas. The event marked Mr. Gagnon’s first public appearance since assuming the CEO role.

The meeting covered key issues such as the company’s strategic direction, expansion plans, and management’s perspective on the disconnect between valuation and the company’s fundamentals.

HC Wainwright analysts believe the company is making good progress toward achieving its hash rate targets. Bitfarms (BITF) is exploring both organic and inorganic growth opportunities for BTC mining and other applications that leverage high-quality energy assets to create new revenue streams for the company, including artificial intelligence.

Analysts therefore consider BITF to be undervalued and recommend buying the stock.

“Yesterday’s discussion further reinforced our view that BITF is one of the most attractively valued public miners and that the stock is poised to deliver outstanding performance as the bull market cycle for BTC progresses,” the analysts wrote.

According to analysts, the company’s current valuation is around 40% lower than its peers, which presents a great investment opportunity as the company makes progress on its strategic plans and benefits from positive market conditions for Bitcoin (BTC).

Hash rate targets

Gagnon shared his vision for Bitfarms, highlighting his hash rate targets for the next few quarters. He aims to reach 21 EH/s and 21 J/TH throughput by the end of this year, and 35 EH/s by the end of 2025.

The company is currently operating at 12 sites in four countries with a fleet efficiency of 10.4 EH/s and 25 J/TH. Management is confident that the targets will be met. They mentioned that 70% of the recently purchased rigs will replace old equipment and the remaining 30% will be used in Paraguay, where construction times are much shorter than in the US

Expansion and artificial intelligence

Bitfarm management emphasized that the company is turning to new business areas, including artificial intelligence, in order to diversify its revenue streams.

It was also mentioned that the company recently purchased a 120 MW facility in Sharon, Pennsylvania, as part of its bid to expand into the US market. This was achieved by taking advantage of the unregulated grid and skilled workforce in the area.

Takeover attempt

Despite challenges such as Riot Blockchain’s hostile takeover attempt and CEO transition, Bitfarms remains optimistic about growth. They are committed to executing on their growth plans and improving power costs and operating efficiency by 2024.