Bitfarm’s stock is unjustifiably discounted, sees 75% upside

Analysts from HC Wainright believe Bitfarm’s growth strategy is promising and the stock could rise 75%.

In a recent market report, analysts expressed optimism about Bitfarms’ potential to expand market share and reduce production costs in 2024. Analysts cited Bitfarm’s actions in launching a fleet upgrade and growth strategy and anticipating a decline in electricity costs.

Bitfarms is a fully integrated worldwide Bitcoin mining company with 12 mining facilities worldwide.

Despite short-term fluctuations due to macro and geopolitical concerns, HC Wainright analysts are optimistic that the Bitcoin price will rise in the medium to long term. They view the shares as an attractive investment with a Buy rating and a $4 price target; This means a 75% upside potential from current levels due to its growth plans and operational performance.

At the time of this writing, Bitfarm shares are trading at $2.40 per share.

Energy efficiency

According to the report, Bitfarms aims to significantly reduce direct production costs through an upgraded and more energy-efficient mining fleet. They estimate there will be a 30% reduction in direct production costs per Bitcoin (BTC) mined, resulting in improved gross margins.

According to the report, Bitfarms will increase its hash rate by 223% year-on-year in 2024, making it one of the largest public miners by scale.

Faster operations and a new CEO

Bitfarms owns and operates mining facilities with over 75% renewable hydroelectric energy, providing almost 100% uptime. In 2023, the company achieved the highest usage rate among miners at over 4 EH/s, earning an estimated 11% more BTC per EH/s compared to its peers.

Bitfarms also began its search for a new CEO following the dismissal of Geoff Morphy on May 13. Meanwhile, Co-Founder and Chairman Nico Bonta will serve as interim CEO until a successor is identified, which is expected within the next few years. weeks. Despite the CEO change, the expertise and capacity of Bitfarms’ management team will help the company continue its growth initiatives in the near term, although this transition could raise concerns for potential new investors.