ECNETNews highlights that an analyst has recognized Bitfarms as a leading player in the Bitcoin mining sector for 2025, attributing this to significant operational enhancements and a strategic pivot towards high-performance computing and artificial intelligence infrastructure.
Following Bitfarms’ fourth-quarter earnings report, the analyst indicated that the market is considerably undervaluing the company’s expanded mining operations and its burgeoning AI initiatives.
ECNETNews reports a Buy rating on Bitfarms with a target price set at $3.50 per share, suggesting a potential increase of over three times from its current price of approximately $0.98.
Q4 Overview
Bitfarms released its Q4 2024 results on March 27, showcasing $56.2 million in revenue—a 25% increase quarter-over-quarter, in line with market expectations. Self-mining revenue climbed to $54.6 million, fueled by higher average Bitcoin (BTC) prices and a 13% rise in deployed hashrate, reaching 12.8 EH/s by year-end. The gross mining profit surged to $25.8 million, reflecting a 47.3% margin, up from 38.4% in the previous quarter.
Although Bitcoin production decreased to 654 BTC due to increased network difficulty, Bitfarms achieved a net income of $15.2 million, or $0.03 per share, marking a robust recovery from a net loss of $36.6 million in Q3. Adjusted EBITDA nearly tripled, reaching $14.3 million.
Bitfarms has significantly boosted its hashrate capacity to 18.6 EH/s, nearly tripling its computing power from 6.5 EH/s at the end of 2023. Upgrades to its fleet have enhanced overall efficiency by 45%, with hash costs averaging between $20 and $22 per petahash, well below the current market price of approximately $50/PH.
Despite these advancements, Bitfarms’ stock has seen a decline of 57% since November, while the Nasdaq index has only dropped by 7% during the same period. Analysts view the company’s valuation of around $25 million per deployed EH as a significant discount compared to peers, who are valued at approximately $85 million per EH.
Strategic Focus on Energy and AI Growth
Looking ahead, Bitfarms is transitioning into a North American energy and computing enterprise.
During a recent conference call, management disclosed that there are no immediate intentions to acquire additional ASIC miners; instead, future growth will concentrate on developing energy infrastructure to support AI and high-performance computing workloads.
This strategic shift includes a recent acquisition of energy assets and the divestiture of its Paraguay-based Yguazu site, which has increased the U.S. share of its energy portfolio from 6% to 33%. Bitfarms is aiming for a total energy capacity of 1.4 GW by 2028, with nearly 80% of this capacity based in the U.S.
Analysts suggest that the potential in high-performance computing and AI opportunities is not currently reflected in forecasts, and a potential partnership with a major hyperscaler could present significant growth potential.
