Overview of Bitfarms Ltd
Bitfarms Ltd. (Canada) engages in cryptocurrency mining, specializing in validating transactions on the Bitcoin blockchain. Founded in 2017 by Emiliano Joel Grodzki and Nicolas Bonta, the company operates server farms and is headquartered in Toronto.
Core Business Focus:
- Cryptocurrency Mining: Primary revenue driver.
- Blockchain Validation: Ensures transaction integrity.
- Strategic Expansion: Focus on high-performance computing (HPC) and AI opportunities.
Recent Performance Highlights
Stock Detail & Financial Metrics (as of latest data):
| Metric | Value |
|---|---|
| Market Cap | $567.08M |
| Enterprise Value | $430.99M |
| P/E Ratio | - |
| EPS (TTM) | -$0.19 |
| Revenue (TTM) | $209.41M |
| Insider Ownership | 13.72% |
| Short Float | 9.19% |
Weekly Performance: +28.16%
YTD Performance: -31.54%
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Key Financial Ratios and Growth Indicators
Profitability & Efficiency:
- ROA: -13.95%
- ROE: -16.30%
- Gross Margin: -10.61%
Liquidity Ratios:
- Quick Ratio: 2.58
- Current Ratio: 2.64
Debt Metrics:
- Debt/Equity: 0.04
- LT Debt/Equity: 0.03
Strategic Developments
- HPC/AI Expansion: Bitfarms is pivoting toward high-performance computing to diversify revenue streams.
- Stronghold Digital Mining Acquisition: Completed in March 2025, enhancing U.S. operational footprint.
- Private Debt Facility: Secured up to $300M with Macquarie Group for Panther Creek HPC project.
Peer Comparison
Major Competitors:
- MARA, RIOT, HUT, CLSK
Comparative Advantage: Lower debt ratios and higher liquidity.
FAQs
Q1: What is Bitfarms’ primary revenue source?
A: Cryptocurrency mining, contributing over 90% of total revenue.
Q2: Why is Bitfarms expanding into AI/HPC?
A: To mitigate crypto volatility and leverage existing infrastructure for scalable growth.
Q3: What risks does BITF stock face?
A: Bitcoin price fluctuations, regulatory changes, and operational costs.
Q4: When is Bitfarms’ next earnings call?
A: May 14, 2025 (Q1 2025 results).
Investment Thesis
Strengths:
- Strong balance sheet with low debt.
- Strategic shift toward AI/HPC.
Challenges:
- Negative profit margins.
- High short interest (9.19%).
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Final Thoughts
Bitfarms remains a speculative play with high growth potential but significant risks. Investors should monitor its HPC transition and Bitcoin market trends closely.
Last updated: May 2025