As a seasoned analyst with over two decades of experience in the tech and crypto sectors, I have seen my fair share of transformational acquisitions that have made significant waves in the market. The $125 million all-stock deal between Bitfarms and Stronghold Digital Mining certainly qualifies as one such move.
According to H.C. Wainwright analyst Mike Colonesse, the deal for Bitfarms to take over Stronghold Digital Mining is a significant and impactful move.
The analyst commented on the Bitcoin (BTC) miner’s potential to benefit from the Stronghold acquisition in a note shared with crypto.news on Aug. 22. It comes a day after Bitfarms’ announcement on Aug. 21.
As a crypto investor, I see the $125 million all-stock deal for Stronghold as a substantial opportunity for Bitfarms to significantly expand its operations over the next 16 months. If successfully completed in the first quarter of 2025, Stronghold’s power capacity will empower Bitfarms to aim for nearly 1 gigawatt of power by the end of the year.
As a researcher, I’ve found that the integration and growth of Stronghold’s resources will empower Bitfarms to substantially increase its total capacity. By the end of 2025, we can anticipate a triple-fold expansion, bringing our operational capacity up to an impressive 955 MW, as compared to the 310 MW we were running at the close of Q2 2024.
Additionally, it’s projected that this agreement will significantly boost Bitfarms’ U.S. presence, accounting for around 47% of its total holdings compared to the current 6%. Moreover, the potential growth of 35 EH/s by the end of 2025, a target previously set by Bitfarms, could potentially be enhanced by an additional 23 EH/s from Stronghold’s sites in Pennsylvania following their acquisition.
Reiterate buy with $4 price target
As a crypto investor, I find myself drawn to the undervalued Bitfarms stock, according to H.C. Wainwright’s recent analysis. The primary drivers of growth for this mining firm in the coming years are expected to be a substantial upgrade to our mining fleet and organic expansion opportunities. These catalysts could potentially lead to significant returns on investment by 2025.
The analyst has reiterated a buy rating for BITF, with a $4 price target. The Bitfarm stock currently trades around $2.28, which implies a 75.4% upside potential. BITF rose 22% after Bitfarm’s Q2, 2024 results.
Variables that could potentially influence reaching our price goal encompass fluctuations in Bitcoin’s value, possible operational setbacks, modifications in the network hash rate, as well as the possibility of increased share ownership.
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2024-08-22 20:20