Bitcoin mining analyst on Bitfarms: ‘CEO overhang now lifted’

by

As a seasoned crypto investor with a keen interest in Bitcoin mining, I’ve been closely following the developments at Bitfarms (BITF) with great anticipation. After attending their virtual fireside chat with newly appointed CEO Ben Gagnon and CFO Jeff Lucas, my optimism for this company has only grown stronger.

In spite of recent attempts to acquire the company and personnel shifts, analysts at H.C. Wainwright remain optimistic about Bitfarms’ future prospects.

On Wednesday, Bitfarms held a virtual conversation with their new CEO, Ben Gagnon, and CFO, Jeff Lucas. This was Mr. Gagnon’s inaugural public engagement since assuming the CEO position.

During the conversation, we delved into significant areas such as the business strategy, growth initiatives, and the viewpoint of management regarding the disparity between the company’s market valuation and its underlying financials.

As a researcher studying the cryptocurrency sector, I’ve come across some intriguing developments at Bitfarms (BITF). According to my analysis of their recent progress, the team is making significant strides in reaching their hash rate targets. The company is actively pursuing both organic and strategic growth opportunities for Bitcoin mining as well as other applications that utilize high-quality energy assets. These initiatives aim to generate new revenue streams for Bitfarms, such as artificial intelligence (AI) projects.

As a result, the analysts believe BITF is undervalued and recommend buying the stock.

In yesterday’s conversation, our perspective regarding BITF being an exceptionally undervalued publicly traded miner became even stronger. We believe that BITF’s shares are primed to yield substantial returns as we advance in the growth phase of the bitcoin market cycle.

Based on the analysis of industry experts, the company’s value currently stands at approximately 40% less than that of its peer group. However, this undervaluation offers a promising investment prospect as the company is actively advancing with its strategic initiatives and profiting from the favorable market trends for Bitcoin (BTC).

Hash rate goals 

Gagnon outlined his plans for Bitfarms, focusing on hash rate targets in the upcoming quarters. His objective is to hit a hash rate of 21 exahashes per second (EH/s) with a jaw-dropping energy efficiency of 21 just terajoules per terahash (J/TH) by year’s end. By 2025, he aims to boost that figure to an impressive 35 EH/s.

The business now manages a total computing power of 10.4 exahashes per second (EH/s) spread over 12 locations in four different countries. The fleet’s efficiency stands at 25 joules per terahash (J/TH). Management remains optimistic about achieving set goals. Approximately 70% of the newly acquired rigs are slated to replace outdated equipment, while the remaining 30% will be deployed in Paraguay due to significantly shorter construction periods compared to the U.S.

Expansion and artificial intelligence 

Bitfarm’s top brass underscored their intention to expand into fresh business domains such as artificial intelligence, aiming to broaden the company’s income sources.

In addition, they highlighted the purchase of a 120 MW power plant in Sharon, Pennsylvania, which is contributing to the firm’s growth in the US market. They are capitalizing on the region’s deregulated electrical grid system and profiting from its highly skilled labor force.

Takeover attempt 

In the face of obstacles like Riot Blockchain’s unwelcome takeover bid and leadership change, Bitfarms stays hopeful about expansion. They remain steadfast in implementing their development strategies and are aiming to reduce power expenses and enhance operational productivity by the year 2024.

Read More

2024-07-18 19:24