We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bitfarms Soars 428% in 3 Months: Buy, Sell or Hold the Stock?
Read MoreHide Full Article
Key Takeaways
Bitfarms is shifting from Bitcoin mining to AI/HPC to tap high-margin data center growth.
The company secured $300M financing and land deals to expand its U.S. infrastructure.
Strong liquidity and low debt bolster Bitfarms, though profitability and competition pose risks.
Bitfarms (BITF - Free Report) displays an outstanding share price movement over the past three months. The stock has skyrocketed 428.4%, outperforming the industry’s 24.2% rally and the 6.3% rise in the Zacks S&P 500 Composite.
3-Month Price Performance
Image Source: Zacks Investment Research
Investors may be swayed by this massive price hike; however, a hasty move can be brutal for returns. Let us analyze further to find out whether investors should buy this stock now or stay away from it.
BITF’s Strategic Pivot to AI/HPC: Key to Growth
Bitfarms’ strategy to pivot to an Artificial Intelligence and High-Performance Computing (AI/HPC) provider from a pure Bitcoin play provides significant growth leverage in a high-margin AI market. The plans look ambitious as the company’s total energy capacity surpasses 1.3 GW. This is a major U.S. pivot with more than 80% of its multi-year pipeline and 100% of its Megawatts under Active Development, concentrated in the U.S. We expect BITF to gain superior infrastructure to meet the rising demand for data centers in the country.
The company has secured a $300-million debt facility from Macquarie Group for the Panther Creek Campus, hinting at strong institutional support and a pretty easy funding path. BITF has also secured the physical capacity for long-term expansion after it successfully concluded the binding purchase and sale agreement for 180 acres of contiguous land at Panther Creek and Washington campus.
BITF has managed to lower the risks associated with the technical execution of this pivot by partnering with T5 Data Centers, a known leader in data center architecture. AI/HPC data centers demand specialized, high-density designs with advanced liquid cooling, a major change from traditional crypto mining operations. The involvement of T5 Data Centers in pre-construction design and development assures that the facilities will be built effectively to shoulder the demanding AI/HPC workloads.
This combination of secured land, massive funding and execution under expert supervision makes this strategic pivot extremely compelling for long-term growth.
In the second quarter of 2025, BITF recorded a current ratio of 3.11, significantly higher than the industry average of 1.78. The liquidity position has improved 17.8% from the preceding quarter due to a significant surge in cash reserves. It is impressive how the company has maintained its current ratio above 1, signaling that it can cover short-term obligations efficiently.
Image Source: Zacks Investment Research
BITF’s debt management capability looks strong, with current debt of $1 million and long-term debt of $71 million against total assets of $828 million. Furthermore, the proportion of total debt to total equity stands at 7.8% compared with the industry benchmark of 57.4%. It shows how significantly less leverage the company operates compared to its peers. This low debt burden may raise a green flag for investors.
Image Source: Zacks Investment Research
BITF’s Strong Sales Outlook vs. Loss Expectations
The Zacks Consensus Estimate for Bitfarms' 2025 revenues is pegged at $321.1 million, implying a 66.5% year-over-year surge. The consensus estimate for 2026 revenues is pinned at $389.9 million, suggesting 21.4% year-over-year growth.
Despite strong top-line expectations, the bottom-line outlook appears weak. The consensus loss for 2025 is set at 13 cents per share compared with the year-ago loss of 14 cents per share. For 2026, the consensus loss is pinned at a penny per share.
Bitfarms’ Capital Return Warrants Scrutiny
On the capital efficiency front, we have assessed return on equity (ROE) and return on invested capital (ROIC). In the second quarter of 2025, BITF’s ROE of -9.9% underperformed the industry average of 7%. On a similar note, the company’s ROIC stands at -9.5%, compared with the industry average of 3.8%. The losses incurred by the company over the past quarters have resulted in negative returns.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
For investors, it is a major red flag as it raises questions on the sustainability of BITF’s business model and hints at the management’s poor capital allocation strategy.
BITF to Navigate Through a Crowded AI/HPC Market
Marathon Digital (MARA - Free Report) and Riot Platforms (RIOT - Free Report) diversified into the AI/HPC market post Bitcoin Halving in April 2024, stripping off the first-mover advantage from Bitfarms. Both Marathon Digital and Riot Platforms have significantly higher market capitalization than BITF, providing the significant financial leverage required for scalability.
If Marathon Digital and Riot Platforms capture the high-margin and long-duration contracts with tech giants, it will cut off opportunities for Bitfarms. Although BITF actively pursues the AI/HPC strategy, it faces the risk of being out-executed by larger rivals, like MARA and RIOT, who can swiftly develop and equip their facilities with the hardware necessary to serve the AI clients.
The real question that arises is whether Bitfarms can significantly improve its competitive edge. To do what is necessary, the company will have to invest heavily, which will not only affect profitability but also may limit its growth potential, creating an imbalance.
Be Patient & Hold on to Bitfarms
Bitfarms’ AI/HPC move appears to be providing a significant growth opportunity within the AI market. The combination of secured land, the right funding and expert supervision has provided greater optimism on this strategy. On the liquidity front, Bitfarms holds a strong position with an efficient debt management strategy in place. Its top-line outlook appears strong. However, the bottom-line outlook does not provide the same motivation.
Negative capital returns due to losses are a major red flag that cannot be ignored. Furthermore, BITF’s strategy to pivot to AI/HPC will be met with significant competitive pressure from giants like MARA and RIOT.
Weighing the pros and cons, we recommend that investors remain patient and refrain from adding this stock to their portfolio any further. Potential investors are asked to monitor Bitfarms' ability to sail through the AI/HPC market before making any move.
Image: Bigstock
Bitfarms Soars 428% in 3 Months: Buy, Sell or Hold the Stock?
Key Takeaways
Bitfarms (BITF - Free Report) displays an outstanding share price movement over the past three months. The stock has skyrocketed 428.4%, outperforming the industry’s 24.2% rally and the 6.3% rise in the Zacks S&P 500 Composite.
3-Month Price Performance
Investors may be swayed by this massive price hike; however, a hasty move can be brutal for returns. Let us analyze further to find out whether investors should buy this stock now or stay away from it.
BITF’s Strategic Pivot to AI/HPC: Key to Growth
Bitfarms’ strategy to pivot to an Artificial Intelligence and High-Performance Computing (AI/HPC) provider from a pure Bitcoin play provides significant growth leverage in a high-margin AI market. The plans look ambitious as the company’s total energy capacity surpasses 1.3 GW. This is a major U.S. pivot with more than 80% of its multi-year pipeline and 100% of its Megawatts under Active Development, concentrated in the U.S. We expect BITF to gain superior infrastructure to meet the rising demand for data centers in the country.
The company has secured a $300-million debt facility from Macquarie Group for the Panther Creek Campus, hinting at strong institutional support and a pretty easy funding path. BITF has also secured the physical capacity for long-term expansion after it successfully concluded the binding purchase and sale agreement for 180 acres of contiguous land at Panther Creek and Washington campus.
BITF has managed to lower the risks associated with the technical execution of this pivot by partnering with T5 Data Centers, a known leader in data center architecture. AI/HPC data centers demand specialized, high-density designs with advanced liquid cooling, a major change from traditional crypto mining operations. The involvement of T5 Data Centers in pre-construction design and development assures that the facilities will be built effectively to shoulder the demanding AI/HPC workloads.
This combination of secured land, massive funding and execution under expert supervision makes this strategic pivot extremely compelling for long-term growth.
Bitfarm’s Strong Liquidity, Prudent Debt Management
In the second quarter of 2025, BITF recorded a current ratio of 3.11, significantly higher than the industry average of 1.78. The liquidity position has improved 17.8% from the preceding quarter due to a significant surge in cash reserves. It is impressive how the company has maintained its current ratio above 1, signaling that it can cover short-term obligations efficiently.
BITF’s debt management capability looks strong, with current debt of $1 million and long-term debt of $71 million against total assets of $828 million. Furthermore, the proportion of total debt to total equity stands at 7.8% compared with the industry benchmark of 57.4%. It shows how significantly less leverage the company operates compared to its peers. This low debt burden may raise a green flag for investors.
BITF’s Strong Sales Outlook vs. Loss Expectations
The Zacks Consensus Estimate for Bitfarms' 2025 revenues is pegged at $321.1 million, implying a 66.5% year-over-year surge. The consensus estimate for 2026 revenues is pinned at $389.9 million, suggesting 21.4% year-over-year growth.
Despite strong top-line expectations, the bottom-line outlook appears weak. The consensus loss for 2025 is set at 13 cents per share compared with the year-ago loss of 14 cents per share. For 2026, the consensus loss is pinned at a penny per share.
Bitfarms’ Capital Return Warrants Scrutiny
On the capital efficiency front, we have assessed return on equity (ROE) and return on invested capital (ROIC). In the second quarter of 2025, BITF’s ROE of -9.9% underperformed the industry average of 7%. On a similar note, the company’s ROIC stands at -9.5%, compared with the industry average of 3.8%. The losses incurred by the company over the past quarters have resulted in negative returns.
For investors, it is a major red flag as it raises questions on the sustainability of BITF’s business model and hints at the management’s poor capital allocation strategy.
BITF to Navigate Through a Crowded AI/HPC Market
Marathon Digital (MARA - Free Report) and Riot Platforms (RIOT - Free Report) diversified into the AI/HPC market post Bitcoin Halving in April 2024, stripping off the first-mover advantage from Bitfarms. Both Marathon Digital and Riot Platforms have significantly higher market capitalization than BITF, providing the significant financial leverage required for scalability.
If Marathon Digital and Riot Platforms capture the high-margin and long-duration contracts with tech giants, it will cut off opportunities for Bitfarms. Although BITF actively pursues the AI/HPC strategy, it faces the risk of being out-executed by larger rivals, like MARA and RIOT, who can swiftly develop and equip their facilities with the hardware necessary to serve the AI clients.
The real question that arises is whether Bitfarms can significantly improve its competitive edge. To do what is necessary, the company will have to invest heavily, which will not only affect profitability but also may limit its growth potential, creating an imbalance.
Be Patient & Hold on to Bitfarms
Bitfarms’ AI/HPC move appears to be providing a significant growth opportunity within the AI market. The combination of secured land, the right funding and expert supervision has provided greater optimism on this strategy. On the liquidity front, Bitfarms holds a strong position with an efficient debt management strategy in place. Its top-line outlook appears strong. However, the bottom-line outlook does not provide the same motivation.
Negative capital returns due to losses are a major red flag that cannot be ignored. Furthermore, BITF’s strategy to pivot to AI/HPC will be met with significant competitive pressure from giants like MARA and RIOT.
Weighing the pros and cons, we recommend that investors remain patient and refrain from adding this stock to their portfolio any further. Potential investors are asked to monitor Bitfarms' ability to sail through the AI/HPC market before making any move.
BITF carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.