Bitfarms Ltd.
- Open
- 3.47
- Day high
- 3.67
- Day low
- 3.35
- Prev close
- 3.54
- Volume
- 20.8M
- Mkt cap
- $1.2B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 2.1
- P/S
- 5.2
- Yield
- —
- Per share
- —
Bitfarms Ltd. (BITF) is a Financial Services company listed on NASDAQ. The stock is up 166% over the past year. Drillr has 2 published research articles covering BITF.
Bitfarms Ltd. (BITF) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
BITF earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Mar 31, 2026 | $-0.04 | $0.03 | +175.0% | $15M | -75.7% |
| Nov 13, 2025 | $-0.02 | $-0.02 | +0.0% | $69M | +12.0% |
| Aug 12, 2025 | $-0.01 | $-0.02 | -100.0% | $78M | -4.0% |
| May 14, 2025 | $-0.04 | $-0.04 | +0.0% | $67M | -11.9% |
| Mar 27, 2025 | $-0.04 | $0.03 | +175.0% | $56M | -11.0% |
| Aug 8, 2024 | $-0.11 | $-0.07 | +36.4% | $42M | -20.6% |
| May 15, 2024 | $-0.02 | $-0.02 | -20.0% | $50M | +12.3% |
| Mar 7, 2024 | $-0.01 | $-0.06 | -605.1% | $48M | -1.7% |
| May 15, 2023 | $-0.03 | $-0.01 | +66.7% | $31M | +3.5% |
| Mar 21, 2023 | $-0.08 | $-0.07 | +12.5% | $-2M | -106.0% |
| Nov 14, 2022 | $-0.00 | $-0.08 | -2896.3% | $-11M | -129.5% |
| Aug 15, 2022 | $0.05 | $-0.05 | -200.0% | $-36M | -174.7% |
BITF research & analysis
China-Taiwan PLA Drills: TSM, NVDA Face Supply Risk — LMT Outperforms Again
The CFTC's settlement with ex-FTX exec Nishad Singh highlights enduring regulatory risks for public crypto firms, with exchanges like COIN most exposed while miners pivoting to AI (MARA, CLSK) offer relative safety. Financials show robust revenue growth across the board but persistent losses and high valuations. Ranked conviction favors diversified miners over pure-play exchanges.
COINMSTRRIOTBitcoin at $66K: MSTR Holds Firm While MARA Faces the Real Risk
Bitcoin's drop to $66,000 tests corporate BTC treasuries, with MicroStrategy and low-leverage miners like RIOT and CLSK best positioned via strong growth and balance sheets. High-debt sellers like MARA face outsized risks. Ranked conviction favors HODLers with operational edges.
MSTRMARARIOT
Bitfarms Ltd. company profile
Overview
Bitfarms Ltd. (NASDAQ:BITF) is a Canadian cryptocurrency mining company founded in 2017 and headquartered in Toronto, Canada. The company went public in 2019 and has evolved from a small-scale Bitcoin mining operation into one of North America's largest cryptocurrency mining companies. Bitfarms operates server farms that validate transactions on the Bitcoin blockchain, earning cryptocurrency rewards through this process. The company has undergone significant strategic transformation in recent years, shifting its focus from international operations to North American energy infrastructure and exploring opportunities beyond traditional Bitcoin mining into high-performance computing and artificial intelligence applications.
Business
Bitfarms operates in the cryptocurrency mining industry, which involves using specialized computer hardware to solve complex mathematical problems that validate transactions on blockchain networks. The company's primary business is Bitcoin mining, where it operates large-scale data centers filled with Application-Specific Integrated Circuit (ASIC) miners that compete to solve cryptographic puzzles. When successful, miners are rewarded with newly minted Bitcoin and transaction fees from the network. Bitcoin mining is essentially a distributed computing process that secures the Bitcoin network. Miners use electricity to power specialized computers that process and verify Bitcoin transactions, bundling them into "blocks" that are added to the blockchain ledger. This process requires enormous computational power and electricity, making access to low-cost energy sources critical for profitability. The company generates revenue through three main segments: 1. Bitcoin Mining Operations (approximately 95% of revenue): Bitfarms operates mining facilities across North America and South America, with a total energy capacity of 461 megawatts. The company has strategically focused on locations with access to low-cost electricity, particularly hydroelectric power sources. As of Q4 2024, the company operates at 18.6 exahash per second of computing power and maintains an average electricity cost of $0.047 per kilowatt-hour. 2. Electrical Services (approximately 3% of revenue): The company provides electrical contractor services to commercial and residential customers in Quebec, Canada, leveraging its technical expertise in power infrastructure. 3. Third-Party Hosting Services (approximately 2% of revenue): Bitfarms offers hosting services for other companies' mining hardware at its facilities, generating revenue through hosting fees while utilizing excess capacity. The company is also developing capabilities in High-Performance Computing (HPC) and Artificial Intelligence infrastructure, representing a potential fourth business segment that could diversify revenue streams beyond cryptocurrency mining.
Revenue model
Bitfarms generates revenue primarily through Bitcoin mining rewards, earning cryptocurrency when its mining operations successfully validate transaction blocks on the Bitcoin network. The company receives both newly minted Bitcoin (block rewards) and transaction fees paid by users. With Bitcoin's current reward structure, successful miners receive 6.25 Bitcoin per block (reduced from 12.5 in 2020 due to "halving"), plus variable transaction fees. The company's customers are essentially the Bitcoin network itself, as miners are compensated automatically by the blockchain protocol. Revenue fluctuates based on Bitcoin's market price, network difficulty (competition from other miners), and the company's share of total network computing power. In Q4 2024, Bitfarms earned 654 Bitcoin with a cash profit of $22,600 per Bitcoin mined. The business model faces several margin-influencing factors: Positive margin drivers include rising Bitcoin prices, which directly increase revenue without proportionally increasing costs. Lower electricity costs through strategic site selection and power purchase agreements provide competitive advantages, as electricity typically represents 60-80% of mining costs. Operational efficiency improvements through newer, more energy-efficient mining hardware can reduce the watts per terahash ratio. The company has improved from 35 watts per terahash to 21 watts per terahash through fleet upgrades. Negative margin pressures include increasing network difficulty as more miners join the Bitcoin network, reducing individual miners' share of rewards. Bitcoin's programmed "halving" events, which occur approximately every four years, cut block rewards in half, directly reducing revenue. Rising electricity costs, equipment depreciation, and increased competition from other mining operations also compress margins. Regulatory changes in jurisdictions where the company operates could impact profitability through taxation or operational restrictions. The company is exploring diversification into HPC and AI infrastructure services, which would create a subscription or usage-based revenue model with enterprise customers, potentially providing more stable cash flows compared to the volatile cryptocurrency mining business.
Competitive moat
Bitfarms possesses a moderate competitive moat primarily built around its access to low-cost energy sources and operational scale, though this moat faces ongoing challenges from industry dynamics and technological changes. The company's strongest defensive position comes from its strategic energy partnerships and geographic diversification. Bitfarms has secured long-term power purchase agreements in regions with abundant low-cost electricity, particularly hydroelectric power in Quebec, Paraguay, and other locations. With electricity costs averaging $0.047 per kilowatt-hour compared to industry averages often exceeding $0.06-0.08, this cost advantage provides meaningful competitive protection. The company's 461 megawatts of secured energy capacity and pipeline of 1.4 gigawatts represents significant barriers to replication. Operational expertise and infrastructure provide additional moat elements. The company has developed proprietary mining management software, established relationships with equipment manufacturers, and built technical capabilities in power infrastructure development. This expertise becomes increasingly valuable as the company pivots toward HPC and AI infrastructure, where specialized knowledge of power, cooling, and data center operations creates higher barriers to entry. However, the moat faces significant structural challenges. Bitcoin mining remains largely commoditized, with success primarily determined by electricity costs and equipment efficiency rather than proprietary technology or network effects. New entrants with access to cheaper power sources or more efficient hardware can quickly erode competitive advantages. The industry's cyclical nature, driven by Bitcoin price volatility and network difficulty adjustments, means that competitive positions can shift rapidly. Emerging threats include potential regulatory restrictions on cryptocurrency mining due to environmental concerns, technological disruptions in mining hardware, and the long-term transition of Bitcoin from proof-of-work to potentially more energy-efficient consensus mechanisms. Large technology companies and institutional investors entering the mining space with superior capital resources also pose competitive risks. The company's strategic pivot toward HPC and AI infrastructure could strengthen its moat by diversifying into markets with higher barriers to entry and more stable demand patterns, though this transition remains in early stages and faces execution risks.
Risks & safety
Bitfarms demonstrates a strong margin of safety from a balance sheet perspective, though operational cash flow volatility presents some concerns. Liquidity and Solvency: - Strong liquidity position with $59.5 million in cash and short-term investments - Total liquidity of approximately $135 million including credit facilities - Current ratio of 5.89, indicating excellent short-term debt coverage - Minimal debt burden with debt-to-equity ratio of only 0.039 - No significant solvency risk given strong balance sheet position Operational Cash Flow: - Negative operating cash flow of -$154.7 million in Q4 2024, primarily due to expansion investments - Free cash flow of -$229.3 million reflects significant capital expenditures for growth - Monthly cash generation from mining operations of $8-12 million provides baseline cash flow - High capital intensity during expansion phases creates temporary cash flow pressures Valuation Metrics: - Trading at 11.8x trailing earnings, reasonable for a cyclical growth company - EV/EBITDA of 5.7x appears attractive relative to growth prospects - Price-to-book ratio of 1.17x suggests limited downside risk - Graham number of 0.95 indicates potential undervaluation Other Considerations: - Bitcoin holdings of approximately 1,000+ coins provide additional asset backing - Significant expansion in energy capacity (461 MW operational, 1.4 GW pipeline) creates option value - Exposure to Bitcoin price volatility creates earnings uncertainty but also upside potential
Recent development
Bitfarms has undergone significant strategic transformation over the past two years, evolving from a primarily international Bitcoin mining operation to a North American energy and computing infrastructure company. The most significant development has been the company's geographic rebalancing toward North America. Through the acquisition of Stronghold Digital Mining and the divestiture of its 200-megawatt Yguazu data center, Bitfarms has increased its U.S. exposure from minimal levels to 33% of its portfolio, with plans to reach 80% U.S. exposure. This shift positions the company in more favorable regulatory environments and closer to potential HPC and AI customers. Operational efficiency improvements have been dramatic, with the company upgrading its mining fleet to achieve 45% better energy efficiency, reducing from 35 watts per terahash to 21 watts per terahash. Hash costs have decreased to $22 per terahash while hashrate capacity has grown to 18.6 exahash per second. These improvements have resulted in direct mining profit margins of 47% and cash profit per Bitcoin of $22,600. The company has initiated a strategic diversification beyond Bitcoin mining into high-performance computing and artificial intelligence infrastructure. Key hires include a Senior Vice President of HPC and AI (James Bond) and a Senior Vice President of Infrastructure (Craig Hibbard). The company has engaged strategic advisors for HPC feasibility studies and is targeting Q4 2025 or Q1 2026 for meaningful integration of HPC services. Financial strategy evolution includes the launch of the "Bitcoin One" treasury management program, which implements a more sophisticated approach to Bitcoin holdings and trading. The company has also improved its capital efficiency, projecting 2025 capital expenditures under $100 million while maintaining strong liquidity of $135 million. Energy infrastructure development has accelerated, with the company building a pipeline of 1.4 gigawatts of potential energy capacity. This infrastructure development creates optionality for both expanded Bitcoin mining and alternative applications in HPC and AI services, positioning Bitfarms as an energy infrastructure company rather than purely a cryptocurrency miner.
BITF company profile · for informational purposes only — not investment advice.
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