Bitfarms, a Bitcoin mining company, recently hosted a virtual fireside chat featuring their newly appointed CEO Ben Gagnon and CFO Jeff Lucas. Analysts at H.C. Wainwright believe that despite recent takeover attempts and staff changes, Bitfarms’ future looks promising. The discussion covered key topics such as the company’s strategic direction, expansion plans, and management’s perspective on the valuation disconnect with the company’s fundamentals. The analysts believe that Bitfarms is undervalued and recommend buying the stock as they are making progress towards achieving their hash rate goals.
H.C. Wainwright analysts stated that Bitfarms 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. The analysts believe that yesterday’s discussion further solidified their view that Bitfarms is one of the most attractively valued public miners and that shares are poised to deliver outsized performance as the market progresses through the bull market cycle for Bitcoin. They also mentioned that the company’s current value is about 40% lower than its peers, presenting a great investment opportunity.
CEO Ben 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, mentioning 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.
Bitfarm’s management also highlighted the company’s exploration of new businesses, including artificial intelligence, to diversify revenue streams. They 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. Despite challenges such as Riot Blockchain’s hostile takeover attempt and CEO transition, Bitfarms remains optimistic about growth and is committed to executing their growth plans to improve power costs and operating efficiency by 2024.
In conclusion, despite recent challenges, analysts at H.C. Wainwright believe that Bitfarms’ future looks bright. The company is making good progress towards achieving its hash rate goals and exploring new revenue streams through opportunities in BTC mining and AI. With the company’s undervaluation compared to its peers, now may be a great time to consider investing in Bitfarms. Despite challenges such as a hostile takeover attempt and CEO transition, Bitfarms remains committed to its growth plans and improving efficiency to drive success in the future.
