Bitfarms (BITF) Stock Surges as Price Target Doubles on AI Power Demand

TLDR

• Bitfarms stock jumped 12% on Friday, reaching $4.61 as analysts raised price targets to $7 from $3.
• The company converted $300M in debt for its Panther Creek campus development and drew an additional $50M for construction.
• B. Riley and Northland increased price targets due to high demand in AI-related power and data center sectors.
• The stock has climbed from a 50-day average of $2.75, showing strong momentum in recent trading sessions.
• Analysts maintain a “Moderate Buy” rating with potential partnerships with tech companies like Google being discussed.

Bitfarms shares climbed 12% on Friday, closing at $4.61. The move came after two major analyst firms doubled their price targets on the cryptocurrency mining company.

Bitfarms Ltd., BITF

B. Riley analyst Nick Giles raised his price target to $7 from $3. He cited growing demand in AI-related power and data center sectors as the primary driver.

Northland also bumped its target to $7. The upgrade followed Bitfarms’ announcement of a $300M debt conversion tied to its Panther Creek campus project.

The company drew an additional $50M to speed up construction. This funding will help purchase equipment needed for the facility’s completion.

Trading volume hit 100 million shares on Friday. That’s more than double the typical daily average of 42 million shares.

The stock reached an intraday high of $4.77. Pre-market trading showed a 9.2% gain, continuing momentum from Thursday’s 9.3% increase.

Converting Debt Into Development

Bitfarms restructured $588M in convertible notes as part of its Panther Creek strategy. The campus aims to serve high-performance computing and AI workloads.

Analysts see potential partnerships with major tech companies. Google has been mentioned as a possible collaborator for the facility.

The company’s 50-day moving average sits at $2.75. Its 200-day average is $1.61, showing the stock’s recent surge.

Bitfarms reported $192.88M in revenue. However, the company posted a negative profit margin of 35.09% in its latest earnings.

The firm lost $0.02 per share last quarter. That missed analyst expectations by a penny.

Revenue came in at $77.80M for the quarter. Analysts had projected $79.78M, making it a slight miss on the top line.

The company maintains strong liquidity ratios. Its current ratio stands at 3.11, with a quick ratio of 3.03.

Debt levels remain manageable with a debt-to-equity ratio of 0.11. This gives Bitfarms flexibility as it expands infrastructure.

Analyst Ratings Show Confidence

Seven analysts rate Bitfarms as a buy. One analyst maintains a sell rating on the stock.

The consensus rating is “Moderate Buy” with an average price target of $4.35. Current trading above that level suggests the market sees more upside.

Wall Street Zen upgraded Bitfarms from sell to hold in September. Jones Trading initiated coverage with a buy rating and $2 price target in July.

Macquarie reaffirmed its outperform rating earlier this month. Weiss Ratings maintains a sell rating on the shares.

Implied volatility jumped 4.8 points to 168.08. This suggests traders expect larger price swings in coming weeks.

The expected daily move based on options pricing is $0.48. Put-call skew steepened, showing increased demand for downside protection.

Options volume tracked near average levels with 69,000 contracts traded. Calls dominated puts with a ratio of 0.1, compared to the typical 0.18 level.

Jonathan Mir serves as CFO, bringing financial experience to guide the company’s expansion plans. His appointment could provide stability during this growth phase.

Institutional investors own 20.59% of Bitfarms stock. Several hedge funds opened new positions in recent quarters, including Arkadios Wealth Advisors and WINTON GROUP Ltd.

The company’s beta of 3.73 indicates high volatility compared to the broader market. Its market cap reached $2.59 billion following the recent price surge.

Analysts project Bitfarms will post -$0.21 earnings per share for the full year. The Panther Creek facility represents a key part of the company’s pivot toward AI and high-performance computing infrastructure.

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