GICS Sector : Financial Services
Bitfarms Ltd.engages in the mining of cryptocurrency coins and tokens in North America.It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees.
In Q3 2025, Bitfarms reported revenue of $84 million, with $69 million from continuing operations, representing a 156% year-over-year increase. The company's gross mining profit was $21 million, with a gross mining margin of 35%. The actual EPS came out at -$0.11142, missing estimates of -$0.02985. Analysts had estimated a revenue growth rate of -6.6% for the next year, indicating a challenging environment for the company.
Publication Date: Nov -20
Bitfarms has over $1 billion in capital for HPC/AI growth initiatives, comprised of $820 million in cash and Bitcoin and $200 million available from the Macquarie facility. The company expects to fully finance the build-out of its Washington site and initial phases of construction at other sites. With a robust balance sheet, Bitfarms is well-positioned to execute on its investment thesis in 2026 and 2027.
Bitfarms' current valuation metrics indicate a challenging environment, with a P/E Ratio of -11.1, P/B Ratio of 2.37, and EV/EBITDA of -353.68. The company's ROE and ROIC are also negative, at -20.47% and -14.73%, respectively. These metrics suggest that investors are pricing in significant growth challenges for the company.
Bitfarms is pivoting to HPC and AI infrastructure, with a focus on executing its existing pipeline. The company has a unique portfolio of energy assets to convert to HPC and AI infrastructure, including its 170 megawatts of low-cost hydropower in Quebec and 350 megawatts of secured power at its Panther Creek campus in Pennsylvania. CEO Ben Gagnon noted that lease rates depend on factors like timeline, location, and risk factors, and that even small increases in dollar per kilowatt per month can lead to significant increases in revenue and profit margin.
The company sees significant growth potential in HPC and AI, but also acknowledges the risks associated with GPU demand and supply chain constraints. Bitfarms is exploring GPU as a service or cloud at its Moses Lake site and is in conversations with leading GPU manufacturers to secure attractive financing options. The company's management believes that bringing forward estimated free cash flow from mining operations and reinvesting it in HPC and AI is the best opportunity for growth.
Bitcoin mining stock prices surge as firms ink major AI deals
Oct -15
Bitfarms Announces Proposed Offering of US$300 Million of Convertible Senior Notes
Oct -15
BITF's HPC & AI Pivot: Can Success Be Fetched Beyond Bitcoin?
Oct -15
Strength Seen in Bitfarms (BITF): Can Its 9.3% Jump Turn into More Strength?
Oct -15
Bitfarms Soars 428% in 3 Months: Buy, Sell or Hold the Stock?
Oct -14
Bitfarms Ltd. (BITF) Hits New High on Bullish Rating, PT
Oct -14
Bitfarms CFO Jeff Lucas to retire as Jonathan Mir named successor
Oct -14
Bitfarms Announces the Retirement of Jeff Lucas, Chief Financial Officer, and the Appointment of Jonathan Mir as Successor
Oct -14
Increasing adoption of cryptocurrencies, growing demand for energy-efficient mining solutions, and expansion of Bitfarms' data center capacity drive growth in cryptocurrency mining.
Bitfarms Ltd. operates a large-scale cryptocurrency mining operation, utilizing state-of-the-art computing equipment to mine popular cryptocurrencies such as Bitcoin and Ethereum.
Bitfarms provides blockchain infrastructure solutions, including node operation, blockchain development, and decentralized application (dApp) hosting.
Bitfarms offers secure and reliable hosting solutions for cryptocurrency-related projects, including wallet hosting, node hosting, and blockchain-based applications.
Bitfarms operates a network of data centers, providing colocation, cloud, and managed services to support a range of industries, including cryptocurrency mining and blockchain development.
Bitfarms provides blockchain consulting services, including strategy development, implementation, and integration of blockchain technology for various industries.
The threat of substitutes for Bitfarms Ltd. is medium, as there are some alternatives to cryptocurrency mining, but they are not yet widely adopted.
The bargaining power of customers for Bitfarms Ltd. is low, as individual customers do not have significant influence over the company's operations.
The bargaining power of suppliers for Bitfarms Ltd. is medium, as the company relies on a few key suppliers for its mining equipment and infrastructure.
The threat of new entrants for Bitfarms Ltd. is high, as the cryptocurrency mining industry is relatively easy to enter, and there are many new companies entering the market.
The intensity of rivalry for Bitfarms Ltd. is high, as the cryptocurrency mining industry is highly competitive, and there are many established players competing for market share.
| Value | |
|---|---|
| Debt Weight | 6.32% |
| Debt Cost | 20.59% |
| Equity Weight | 93.68% |
| Equity Cost | 20.59% |
| WACC | 20.59% |
| Leverage | 6.74% |
Value: 6.0
Growth: 4.3
Quality: 3.5
Yield: 5.0
Momentum: 9.0
Volatility: 0.3
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