TLDR
- Bitfarms shares jumped 28.3% to $5.39 on Monday after Trump reversed his 100% China tariff threat over the weekend.
- Trading volume exploded 307% above average as Bitcoin mining stocks recovered from Friday’s historic $19 billion crypto liquidation.
- Wall Street Zen upgraded Bitfarms from “sell” to “hold” while Northland Securities set a $7.00 price target.
- The tariff scare resulted from Trump misunderstanding China’s rare earth export controls announced October 10th.
- Treasury Secretary Scott Bessent confirmed the proposed tariffs “don’t have to happen” during Monday’s trading session.
Bitfarms stock soared 28.3% on Monday, closing at $5.39 after President Trump walked back his China tariff threats. The Bitcoin mining company led a sector-wide recovery following a brutal Friday selloff.
Trading volume hit 150 million shares, up 307% from the 36.8 million daily average. The stock had closed Friday at $4.20 before Trump’s weekend clarification.
The rally reversed Friday’s panic when Trump announced plans for 100% tariffs on Chinese imports. The threat sent Bitcoin mining stocks tumbling as investors feared an escalating trade war.
Over the weekend, Trump changed course on Truth Social. He called President Xi “highly respected” and admitted he “just had a bad moment.”
Treasury Secretary Scott Bessent added clarity Monday morning. He told markets the proposed 100% tariffs “don’t have to happen,” easing concerns about US-China relations.
Tariff Confusion Sparked Selloff
The entire crisis stemmed from a misunderstanding. China expanded export controls on rare earth minerals for defense and semiconductor use on October 10th.
Trump interpreted these routine trade measures as aggressive action. Market commentator The Kobeissi Letter confirmed Trump had misread China’s standard export policy.
Friday’s flash crash liquidated $19 billion in leveraged crypto positions. This exceeded the FTX collapse as the largest liquidation event in crypto history.
Hyperliquid accounted for $10.3 billion in wiped positions. Binance and Bybit also reported heavy liquidations during the selloff.
Analysts Raise Ratings
Wall Street Zen upgraded Bitfarms from “sell” to “hold” on September 13th. Northland Securities issued a $7.00 price target in Monday’s report.
Six analysts now rate the stock as “buy” with one “sell” rating. The consensus target price stands at $4.35 according to MarketBeat.
Compass Point started coverage with a “buy” rating September 15th. Jones Trading assigned a “buy” rating with a $2.00 target in July.
Bitfarms reported earnings August 12th that missed expectations. The company posted a $0.02 per share loss versus the $0.01 loss forecast.
Revenue reached $77.80 million, below the $79.78 million estimate. The company maintains a 3.03 quick ratio and 0.11 debt-to-equity ratio.
Institutional investors have been accumulating shares. Vident Advisory increased holdings 70% in Q2 to 11.4 million shares worth $9.5 million.
Invesco grew its position 40.4% to 13.2 million shares valued at $11.1 million. Charles Schwab boosted holdings 52.2% to 3.8 million shares.
Mining Sector Recovers
Other mining stocks joined the rally. Cipher Mining gained 20% while Bitdeer, IREN and MARA Holdings each rose roughly 10%.
AI infrastructure news helped lift sentiment. OpenAI partnered with Broadcom to develop custom AI chips.
Bloom Energy signed a $5 billion deal with Brookfield for AI data center fuel cells. Mining companies have been pivoting toward AI computing services.
Binance faced scrutiny after token prices briefly showed zero. The exchange blamed a user interface bug that didn’t affect actual trades.
Crypto.com CEO Kris Marszalek urged regulators to investigate exchange operations during the crash. He questioned whether platforms maintained proper controls during extreme volatility.
Ethena’s USDe stablecoin lost its peg during the chaos. Founder Guy Young said the issue was isolated to Binance due to orderbook problems and deposit restrictions.
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