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

Despite recent takeover attempts and staff changes, analysts at H.C. Wainwright believe that Bitfarms’ future is bright. 

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

The discussion covered key topics, including the company’s strategic direction, expansion plans, and management’s perspective on the valuation disconnect with the company’s fundamentals.

Analysts at H.C. Wainwright believe the company is making good progress toward achieving its hash rate goals. Bitfarms (BITF) is exploring both organic and inorganic growth opportunities for BTC mining and other applications that use high-quality energy assets to create new revenue streams for the company, including AI. 

As a result, the analysts believe BITF is undervalued and recommend buying the stock.

“Yesterday’s discussion further solidified our view that BITF is one of the most attractively valued public miners and that shares are poised to deliver outsized performance as we progress through the bull market cycle for BTC,” the analysts wrote. 

According to the analysts, the company’s current value is about 40% lower than its peers. This presents a great investment opportunity because the company is making progress with its strategic plans and taking advantage of the positive market conditions for Bitcoin (BTC).

Hash rate goals 

Gagnon shared his vision for Bitfarms, highlighting hash rate goals over the next couple of quarters. He aims to achieve 21 EH/s with 21 J/TH efficiency by the end of this year and 35 EH/s by the end of 2025. 

The company currently operates 10.4 EH/s across 12 sites in four countries, with a fleet efficiency of 25 J/TH. Management is confident about meeting the targets. They mentioned that 70% of the recently acquired rigs will replace old equipment, and the remaining 30% will be used in Paraguay, where construction timelines are much shorter than in the U.S.

Expansion and artificial intelligence 

Bitfarm’s management highlighted the company’s exploration of new businesses, including AI, to diversify revenue streams. 

They also mentioned the recent acquisition of a 120 MW facility in Sharon, Pennsylvania, as part of the company’s expansion into the U.S. market, leveraging the deregulated 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 their growth plans and improving power costs and operating efficiency by 2024.