🌎 Analyst Reaffirms Buy Rating, Sees Bitfarms Stock as Undervalued

HC Wainwright has reiterated a buy rating with a target price of $4 for Bitfarms (NASDAQ:BITF) stock. According to HC Wainwright analyst Mike Colonnese, Bitfarms is currently one of the most attractively valued stocks in Bitcoin mining.

The company’s openness to a sale that maximizes shareholder value suggests that any successful bid could come at a premium compared to where BITF currently trades. Colonnese, who initiated coverage for the Bitcoin mining firm’s stock early this month, issued the optimistic forecast for BITF in a research note published on Monday, June 17.

Analysts Reiterate Buy Rating for Bitfarms Stock

HC Wainwright analyst Mike Colonnese states that Bitfarms is one of the most undervalued publicly traded Bitcoin miners. The analyst highlights Bitfarms’ recent agreement for a $3.7 million deal in an all-stock transaction for 120 MW of power as an indicator of the company’s strong growth initiatives.

Shares of Bitfarms rose 15% when the company announced its expansion efforts last week. The miner’s agreement will enable it to bring up to 120 MW of power online via the new site in Sharon, Pennsylvania. This agreement will see Bitfarms add 0.6 EH/s to its capacity in the fourth quarter of 2024 and a total of 8 EH/s in the second half of 2025. Another 6 EH/s will come online in 2025 via the recently announced 100 MW expansion at Yguazu. Bitfarms’ end-of-year projection for 2024 is 21 EH/s, with management’s guidance for 35 EH/s by the end of 2025.

“Owned and operated infrastructure is expected to grow to approximately 650 MW in 2025. Factoring in the new development site in Sharon, PA, we estimate Bitfarms is now poised to increase total power capacity by 170% to 648 MW in 2025, up from 240 MW operating today,” the analyst wrote.

Risks

Despite recent market upheavals and the Riot takeover saga, Bitfarms’ stock price is up 30% in June and nearly 24% in the past five days. Year-to-date, BITF is up 5.7%. However, HC Wainwright suggests that there are risks to BITF hitting the $4 price target. These risks include volatility in Bitcoin prices, delays at Bitfarms’ new mining facilities, and potential impacts from shareholder dilution resulting from equity capital raises.