Bitcoin Mining Company Bitfarms Jumps 8% on Share Buyback Program

Shares of bitcoin mining company Bitfarms (BITF) rose sharply on Tuesday after announcing plans to buy back up to 10% of its outstanding shares.

The Toronto-based company said the buyback program, which begins July 28, will allow it to purchase nearly 50 million shares on the open market through Nasdaq and the Toronto Stock Exchange over the next year. The purchases will be subject to regulatory restrictions and daily trading volume limits. All shares bought back will be cancelled.

BITF shares rose 18% on the news, but have since pulled back somewhat. They have recently gained 8%, even as most other bitcoin mining companies have seen declines, with bitcoin falling back below $118,000.

“We believe that Bitfarms shares are currently undervalued as the market is not pricing in our bitcoin mining business and our high-performance computing potential is essentially worthless,” said CEO Ben Gagnon. “We are confident that our unique and sought-after Pennsylvania energy portfolio will drive long-term, sustainable growth that is financially viable and will allow management to leverage the strength of our balance sheet to drive shareholder value through this buyback program, while pursuing growth opportunities in high-performance computing and artificial intelligence to leverage our significant U.S. energy potential.”

Source: cryptonews.net