Analyst: Bitfarm’s stock is unjustifiably discounted, sees 75% upside

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As a researcher with a background in technology and finance, I find the H.C. Wainright analysts’ report on Bitfarms intriguing. The potential for significant growth and cost savings in Bitcoin mining operations is an area of great interest to me, given the current market dynamics and the increasing importance of energy efficiency in the industry.

According to analysts at H.C. Wainright, Bitfarm’s expansion plan looks promising, potentially leading to a 75% increase in the company’s stock value.

Analysts are bullish about Bitfarms’ ability to increase its market presence and decrease production costs by 2024. This confidence stems from Bitfarms’ plans for a fleet upgrade and growth initiative, as well as expectations of lower electricity expenses.

Bitfarms is a globally operating Bitcoin mining company that boasts 12 mining sites situated around the world.

In the face of possible short-term fluctuations caused by economic and geopolitical factors, H.C. Wainright analysts remain optimistic about Bitcoin’s value in the future. They consider the investment an enticing opportunity, assigning it a Buy recommendation and setting a $4 price objective. This target suggests a potential increase of 75% from the present value due to Bitcoin’s expansion strategies and strong operational execution.

At the time of writing, Bitfarm shares are trading at $2.40 a share.

Energy efficiency

According to the report, Bitfarms intends to bring down its production costs for each Bitcoin (BTC) significantly by upgrading to a more energy-efficient mining fleet. This upgrade is projected to lead to a cost savings of approximately 30%. Consequently, the company’s gross margins are expected to improve as a result.

As a researcher examining mining industry trends, I’ve come across a noteworthy prediction: Bitfarms is projected to boost its hashrate by an impressive 100% quarter over quarter in 2024, resulting in a yearly increase of approximately 223%. This growth trajectory positions Bitfarms as a leading contender among public miners in terms of scale.

Faster operations and a new CEO 

As a crypto investor, I’m impressed by Bitfarms’ commitment to sustainability. With over 75% of our mining facilities powered by renewable hydropower, we’ve managed to achieve almost uninterrupted uptime, around 100%. In the competitive year of 2023, we outperformed our peers by reaching the highest utilization rate among miners with over 4 EH/s. This achievement translated into an estimated 11% higher BTC earnings per EH/s for us compared to our competitors.

Bitfarms is currently in the process of finding a new CEO, with Co-Founder and Chairman Nico Bonta stepping up as interim CEO in place of Geoff Morphy, who was terminated on May 13. The identification of a successor is anticipated within the coming weeks. During this transition period, Bitfarms’ experienced management team should continue to drive growth initiatives. However, this leadership change could create uncertainty for potential new investors.

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2024-06-04 19:34