TLDR
- B. Riley analyst raised Bitfarms price target to $7 from $3, maintaining a Buy rating
- The firm updated estimates for high performance computing companies, lifting price targets by an average of 78%
- Bitfarms closed a $588 million convertible senior notes offering due in 2031
- The notes carry a 1.375% interest rate with a conversion price of $6.86 per share
- After the offering, Bitfarms holds over $1 billion in cash, Bitcoin, and available funds
B. Riley analyst Nick Giles increased the price target on Bitfarms from $3 to $7. The firm kept its Buy rating on the shares.
The analyst updated estimates and valuations for high performance computing-focused companies. This update resulted in price targets rising by an average of 78%. The firm also raised 2026 forecasts by 5%.
Despite recent pullbacks in the stock price, shares remain higher since midyear. The gains are supported by strong AI-related power and data center demand. B. Riley pointed to new deals like the reported cloud partnership between Google and Anthropic as potential drivers of further upside.
The price target increase follows Bitfarms’ successful completion of a $588 million convertible senior notes offering. The company closed the deal on October 21, 2025. This marked Bitfarms’ first entry into the convertible bond market.
The offering included the full exercise of an $88 million option. After deducting initial purchasers’ discounts and expenses, Bitfarms received net proceeds of approximately $568 million.
Financial Structure of the Deal
The notes carry an interest rate of 1.375% per annum. They mature in 2031. Bitfarms plans to use the funds for general corporate purposes, including purchasing capped calls to reduce economic dilution.
The initial conversion rate is 145.6876 common shares per $1,000 principal amount. This equals a conversion price of approximately $6.86 per share. The conversion price represents a 30% premium over the last reported sale price of $5.28.
CEO Ben Gagnon said the upsizing of the deal strengthened Bitfarms’ balance sheet. The company now holds over $1 billion in cash, Bitcoin, and available funds from the Macquarie project facility.
Bitfarms structured a capped call transaction with an initial cap price of $11.88 per common share. This represents a 125% premium over the recent sale price. The strategy aims to preserve shareholder value while minimizing potential dilution.
Regulatory Compliance and Future Plans
The convertible notes and corresponding shares are not registered under the U.S. Securities Act of 1933. Sales were limited to qualified institutional buyers. Bitfarms used exemptions from prospectus requirements under Canadian securities laws.
The company is focusing on U.S. expansion. Bitfarms is developing its 1.3 GW energy pipeline. Most of this pipeline is located in data center hubs with strong power and fiber infrastructure.
The notes were sold only to qualified institutional buyers. This complies with regulatory standards in both the United States and Canada.
Shares have performed well since midyear despite some recent declines. The stock benefits from growing demand for AI infrastructure and data center capacity.
The analyst community appears optimistic about companies in the high performance computing space. B. Riley’s across-the-board price target increases reflect this view.
Bitfarms operates advanced data centers across the Americas. The company has been publicly traded on both the Nasdaq and Toronto Stock Exchange since its founding in 2017.
The convertible notes offering gives Bitfarms financial flexibility for infrastructure projects. The company is targeting high-performance computing and artificial intelligence applications.
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