Analyst Sees Bright Future for Bitfarms in Bitcoin Mining and AI
H.C. Wainwright & Co. analyst Mike Colonnese has named Bitfarms as a top pick for 2025 in the Bitcoin mining sector. He believes the market is undervaluing the company’s mining operations and its move into AI infrastructure.
Following Bitfarms’ Q4 2024 earnings report, Colonnese reiterated a Buy rating with a $3.50 price target. This suggests a potential threefold increase from the current price of $0.98.
Bitfarms reported Q4 revenue of $56.2 million, up 25% from the previous quarter. Self-mining revenue reached $54.6 million, thanks too higher Bitcoin prices and a 13% increase in hashrate to 12.8 EH/s.
Despite a slight dip in Bitcoin production, the company posted a net income of $15.2 million, a significant improvement from a $36.6 million loss in Q3. Adjusted EBITDA nearly tripled to $14.3 million.
Bitfarms has expanded its hashrate capacity to 18.6 EH/s, nearly tripling its computing power from 2023. Fleet upgrades have also improved efficiency by 45%, with hash costs now averaging around $20–$22 per petahash.
Despite these improvements, Bitfarms’ stock has fallen 57% as November. Colonnese believes the company’s valuation is a steep discount compared to peers.
Bitfarms is also shifting focus to become a North american energy and compute company. The company plans to build energy infrastructure to support AI and high-performance computing (HPC) workloads.
Recent acquisitions and sales have increased the U.S.share of its energy portfolio from 6% to 33%. Bitfarms aims to reach 1.4 GW of total energy capacity by 2028, with nearly 80% in the U.S.
Colonnese notes that the HPC/AI opportunity is not yet reflected in current projections. A potential partnership with a hyperscaler could provide significant upside.
