HC Wainwright & Co. analyst Mike Colonnes included Bitfarms shares in his list of favorite bitcoin mining stocks for 2025, highlighting significant operational improvements and a shift toward high-performance computing and artificial intelligence infrastructure.
In a research note following Bitfarms' Q4 2024 earnings release and conference call, Colonnes noted that the market is “significantly undervaluing” the company's ability to scale its mining operations and its new AI strategy.
HC Wainwright reiterated his Buy rating on Bitfarms shares with a price target of $3.50 per share, implying more than three times the current price of around $0.98.
4th Quarter Review
Bitfarms released its Q4 2024 results on March 27. Revenue was $56.2 million, up 25% from the previous quarter and in line with analyst estimates. Revenue from self-mining increased to $54.6 million, driven by higher average Bitcoin (BTC) prices and a 13% increase in deployed hashrate to 12.8 EH/s by the end of the year. Gross mining profit increased to $25.8 million, with a margin of 47.3%, up from 38.4% in the previous quarter.
Although Bitcoin production dropped to 654 BTC due to increased network difficulty, the company still reported net income of $15.2 million, or $0.03 per share, a significant increase from a net loss of $36.6 million in the third quarter. Adjusted EBITDA nearly tripled to $14.3 million.
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Bitfarms has increased its computing power to 18.6 EH/s, nearly tripling it from 6.5 EH/s at the end of 2023. The hardware upgrade has also increased overall efficiency by 45%, with hashing costs now averaging around $20–$22 per petahash, significantly lower than current market hashing prices of around $50 per petahash.
Despite this, Bitfarms shares have fallen 57% since November, while the Nasdaq has fallen 7% over the same period. Colonnes considers the company’s current valuation of ~$25 million per deployed EH a significant discount compared to peers that trade close to $85 million per EH.
Energy assets to support AI development
Moving beyond mining, Bitfarms positions itself as an energy and computing company in North America.
The company's management said on the call that it has no immediate plans to purchase more ASIC miners, and that future growth will focus on building out power infrastructure to support AI and high-performance computing workloads.
This transition includes the recent purchase of Stronghold assets and the sale of its Paraguayan Yguazu facility, which increases the U.S. share of its energy portfolio from 6% to 33%. Bitfarms now aims to reach 1.4 GW of total energy capacity by 2028, with nearly 80% of the capacity located in the U.S.
Colonnes noted that HPC/AI capabilities are not yet reflected in current forecasts, and a potential partnership with a hyperscale vendor could provide significant growth.
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Source: cryptonews.net
