Bitfarms Ltd. (NASDAQ: BITF) has recently drawn updated attention from equity analysts at B. Riley, who revised their earnings projections for the cryptocurrency mining firm’s fiscal year 2024. In a research note released on February 12th, analyst N. Giles adjusted the expected earnings per share (EPS) for Bitfarms downward to ($0.22)**, a slight reduction from the prior forecast of **($0.21). This revision positions B. Riley’s estimate just below the current market consensus, which stands at ($0.21) EPS for FY2024.
Beyond the immediate fiscal year, B. Riley also provided forward-looking estimates:
- Q4 2024 EPS: ($0.05)
- FY2025 EPS: ($0.08)
- FY2026 EPS: ($0.06)
These projections reflect ongoing market scrutiny of Bitfarms’ profitability amid fluctuating Bitcoin prices, mining difficulty adjustments, and energy cost dynamics. While the company remains in a net loss position across these forecast periods, the narrowing of expected losses in FY2025 and FY2026 suggests a potential path toward improved operational efficiency.
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Analyst Sentiment and Price Targets
Bitfarms has attracted growing interest from Wall Street analysts, with multiple firms initiating or upgrading coverage over recent months.
- Stifel Canada upgraded Bitfarms from “hold” to “moderate buy” on November 22nd.
- HC Wainwright maintained a “buy” rating and set a $4.00 price target on November 14th.
- Alliance Global Partners initiated coverage on December 4th with a “buy” rating and a more aggressive $6.00 target.
- Keefe, Bruyette & Woods began coverage on January 8th, assigning an “outperform” rating.
Currently, six analysts recommend Bitfarms as a “buy,” while one holds a “hold” rating, resulting in a collective “Moderate Buy” consensus according to MarketBeat data. The average price target sits at $4.05, implying significant upside from current trading levels.
This positive sentiment underscores confidence in Bitfarms’ long-term positioning within the North American crypto mining landscape, despite near-term headwinds related to macroeconomic conditions and sector volatility.
Bitfarms Stock Performance Overview
As of midday Friday trading, Bitfarms’ stock (BITF) dipped $0.02 to close at **$1.41 per share. The intraday volume reached 30,380,635 shares, slightly below its 30-day average volume of 42,312,188. Over the past year, BITF has traded between a low of $1.28** and a high of **$3.91**, reflecting the high-beta nature of crypto-linked equities.
Key financial metrics include:
- Market capitalization: $636.37 million
- P/E ratio: -3.90 (indicating negative earnings)
- Beta: 3.64 (signaling extreme volatility relative to the broader market)
- 50-day moving average: $1.60
- 200-day moving average: $1.92
The company maintains a healthy balance sheet with a debt-to-equity ratio of just 0.04, highlighting minimal leverage risk. Its liquidity position is strong, supported by a current ratio of 3.70 and a quick ratio of 3.68, both well above industry norms.
These fundamentals suggest that while Bitfarms is not yet profitable, it operates with financial discipline and low solvency risk—critical attributes in a capital-intensive industry like Bitcoin mining.
Institutional Investment Trends
Institutional interest in Bitfarms has been evolving across recent quarters:
- Chesapeake Capital Corp IL increased its stake by 27.9% in Q3, now holding 22,000 shares valued at $50,000.
- Gladstone Institutional Advisory LLC grew its position by 3.2%, owning 159,550 shares worth $337,000.
- Lifeworks Advisors LLC boosted holdings by 42.4% in Q4, reaching 24,664 shares.
- Cresset Asset Management LLC expanded exposure by 54.6% in Q4 to 27,735 shares.
- HighTower Advisors LLC established a new position in Q3 worth approximately $25,000.
Currently, institutional investors and hedge funds collectively own 20.59% of Bitfarms’ outstanding shares—an indicator of growing professional market validation.
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Company Operations and Business Model
Bitfarms Ltd. operates as a vertically integrated cryptocurrency mining company with facilities across Canada, the United States, Paraguay, and Argentina. The core of its business involves deploying large-scale server farms to validate transactions on the Bitcoin blockchain, earning revenue through block rewards and transaction fees.
The company emphasizes sustainability and energy efficiency, often leveraging hydroelectric power sources—particularly in Quebec—to reduce operating costs and environmental impact. This strategic focus aligns with increasing regulatory and investor demand for ESG-compliant mining practices.
In addition to mining operations, Bitfarms offers electrical contracting services to commercial and residential clients in Quebec, providing a secondary revenue stream that helps diversify income during periods of crypto market downturns.
This hybrid model enhances resilience, allowing Bitfarms to maintain cash flow even when Bitcoin hash rates or prices create margin pressure on pure-play miners.
Frequently Asked Questions (FAQ)
Q: Why did B. Riley lower its FY2024 EPS estimate for Bitfarms?
A: While the exact rationale wasn't detailed, small downward revisions like this often reflect updated assumptions about Bitcoin prices, electricity costs, or network difficulty—key variables impacting mining profitability.
Q: Is Bitfarms profitable right now?
A: No, Bitfarms is currently unprofitable based on EPS estimates, with projected losses through FY2026. However, improving margins and cost controls suggest progress toward future profitability.
Q: What factors influence Bitfarms’ stock price?
A: Key drivers include Bitcoin’s market price, mining difficulty, energy costs, global regulatory developments, and overall sentiment toward crypto equities.
Q: How does Bitfarms compare to other Bitcoin miners?
A: Compared to peers like Marathon Digital or Riot Platforms, Bitfarms operates at a smaller scale but benefits from lower energy costs due to its hydro-powered facilities in Canada.
Q: Can institutional ownership impact BITF’s stock performance?
A: Yes—rising institutional ownership typically brings greater liquidity and stability, often preceding longer-term price appreciation if fundamentals improve.
Q: What does a beta of 3.64 mean for investors?
A: A beta above 3 indicates that BITF is highly volatile—its price tends to swing much more dramatically than the S&P 500. This makes it suitable primarily for risk-tolerant investors.
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