Analysts at H.C. Wainwright & Co. have identified Bitfarms as a top pick in the Bitcoin mining sector for 2025, highlighting its substantial operational improvements and notable shift towards high-performance computing and artificial intelligence (AI) infrastructure. According to a recent research note, Mike Colonnese, the leading analyst at the firm, asserts that the market is currently significantly undervaluing Bitfarms’ enhanced mining capabilities and strategic transition into the AI field.
In its fourth quarter earnings report for 2024, Bitfarms reported impressive results, showcasing a revenue increase of 25% quarter-over-quarter, culminating in a total of $56.2 million. Key performance indicators included:
- Self-mining revenue reaching $54.6 million, buoyed by rising average Bitcoin (BTC) prices.
- Increased deployed hashrate, which rose by 13% to a total of 12.8 EH/s.
- Gross mining profit soaring to $25.8 million, yielding a robust 47.3% margin.
Despite a slight dip in Bitcoin production, the company has demonstrated resilience with a net income of $15.2 million—a stark contrast to the $36.6 million net loss recorded in the previous quarter. Additionally, Bitfarms’ adjusted EBITDA nearly tripled, reaching $14.3 million, indicating strong operational efficiency.
Looking forward, the company has ambitious goals, intending to expand its energy assets to support AI and high-performance computing workloads. Management has shifted focus from acquiring more ASIC miners to building robust energy infrastructure—a critical pivot for scaling operations. The recent acquisition of Stronghold assets and divestiture of the Paraguay-based Yguazu site have shifted Bitfarms’ energy portfolio significantly, increasing its U.S. energy assets share from 6% to 33%. By 2028, Bitfarms aims to achieve a total energy capacity of 1.4 GW, with approximately 80% located in the U.S.
Despite the promising outlook, Bitfarms’ stock has declined by 57% since November 2024, contrasting sharply with a modest 7% decline in the Nasdaq index during the same timeframe. Colonnese highlights this disparity, noting that the company’s current valuation of ~$25 million per deployed EH represents a steep discount compared to its peers trading closer to ~$85 million per EH. As the HPC/AI market potential becomes more pronounced, a strategic partnership with a hyperscaler could unlock significant value, further amplifying the upside for Bitfarms.
In conclusion, Bitfarms stands on the brink of a transformational year as it navigates the dual realms of Bitcoin mining and AI energy solutions. Investors looking for an undervalued asset in the cryptocurrency landscape may find Bitfarms to be a compelling opportunity.
