TLDR
- Bitfarms stock surged 15% in a single trading session, reaching a high of $3.51 and hitting a new 52-week peak of $3.80
- Trading volume exploded to 95 million shares, up 180% from the typical 34 million daily average
- The stock has rallied 88% over the past 12 months, with revenue growing 42% year-over-year
- Analysts maintain a “Moderate Buy” rating with an average price target of $3.69, with five buy ratings and one sell
- Despite missing Q2 earnings estimates, Bitfarms outperformed Bitcoin itself and is expanding into AI data centers
Bitfarms Ltd shares climbed 15% during Monday’s trading session, closing at $3.46 after touching an intraday high of $3.51. The stock opened at $3.01 before the rally began.
Trading volume told an interesting story. Nearly 95.2 million shares changed hands, representing a 180% increase from the company’s average daily volume of 33.9 million shares.
The surge pushed Bitfarms to a new 52-week high of $3.80. That’s a long way from where the stock traded a year ago.
Over the past 12 months, shares have gained 88%. The company’s market cap now sits at $1.95 billion.
Revenue growth has been strong. The company posted 42% year-over-year revenue growth, pulling in $77.8 million in the most recent quarter.
That revenue number actually came in slightly below analyst expectations of $79.78 million. The company also reported a loss of $0.02 per share for the quarter.
Analysts had expected a loss of just $0.01 per share. So Bitfarms missed on both the top and bottom lines.
Analyst Ratings and Price Targets
Despite the earnings miss, Wall Street remains relatively bullish. Five analysts rate the stock a buy, while one maintains a sell rating.
The consensus rating works out to “Moderate Buy.” The average price target sits at $3.69.
Several firms initiated or updated coverage recently. Compass Point jumped in with a buy rating on September 15.
Jones Trading also started coverage in July with a buy rating and a $2 price target. Wall Street Zen upgraded the stock from sell to hold in mid-September.
Weiss Ratings stands as the lone bear, maintaining a sell rating as of late September.
Expansion Into AI Data Centers
H.C. Wainwright maintained its buy rating with a $4 price target. The firm highlighted Bitfarms’ push into high-performance computing and AI data centers.
This move into AI infrastructure could explain why investors are excited despite the Q2 results. The expansion represents a potential new revenue stream beyond traditional crypto mining.
The company called Q2 results “underwhelming” themselves. Yet shares still outperformed Bitcoin, which hit a new high of $118,761.
That outperformance is unusual for crypto mining stocks. They typically track closely with Bitcoin’s price movements.
Institutional ownership stands at 20.59%. Several new positions were opened in recent quarters, with investments ranging from $39,000 to $59,000.
The company maintains a debt-to-equity ratio of 0.11. It has a quick ratio of 3.03 and current ratio of 3.11.
Analysts project Bitfarms will post a loss of $0.21 per share for the full fiscal year. The company is expected to turn profitable next year based on current forecasts.
The stock’s 50-day moving average sits at $1.84, while the 200-day moving average is $1.27. Both averages remain well below the current trading price.
