Bitfarms Ltd

Bitfarms Ltd. (NASDAQ: BITF) headquartered in Canada, is a global Bitcoin-focused company that operates vertically integrated data centers. The company provides computational power to one or more mining pools and receives payments in Bitcoin in return. Bitfarms designs, builds, and manages its own mining facilities, with operations fully managed in-house. It also owns and operates its own electrical engineering and installation services, along with multiple on-site technical repair centers. Additionally, the company utilizes a proprietary data analytics platform to optimize performance and ensure high operational uptime.

Business Updates

• Financial Results Highlight Revenue Growth and Margin Compression: In Q1 2025, Bitfarms Ltd. (Nasdaq/TSX: BITF) reported total revenue of USD 67 million, marking a 33% year-over-year increase. Despite the revenue growth, gross mining margin declined to 43% from 63% in Q1 2024, reflecting increased production costs. Adjusted EBITDA came in at USD 16 million, or 23% of revenue, compared to USD 23 million, or 46% of revenue, in the prior year period. The company recorded an operating loss of USD 32 million and a net loss of USD 36 million, or USD 0.07 per basic and diluted share, versus a net loss of USD 6 million, or USD 0.02 per share, in Q1 2024. General and administrative expenses rose to USD 20 million, including USD 2 million in non-recurring transaction-related costs.
• Operational Efficiency and Mining Metrics Show Significant Improvement: Bitfarms’ mining performance improved markedly during the quarter, with its operating hashrate reaching 19.5 EH/s as of March 31, 2025—an increase of 200% from 6.5 EH/s a year earlier. Mining efficiency also improved to 19 watts per terahash (w/TH), a 44% increase from 34 w/TH. The company earned 693 BTC during the quarter at an average direct cost of USD 47,800 per BTC and a total cash cost of USD 72,300 per BTC. Operating capacity expanded to 461 MW, up from 240 MW in Q1 2024. These gains position the mining business as a low-capex, free cash flow-generating foundation for Bitfarms’ future expansion.
• Strategic Shift to the U.S. and High-Performance Computing: Bitfarms executed key strategic moves in line with its shift toward the U.S. and high-performance computing (HPC). The company sold its 200 MW Yguazu data center in Paraguay to HIVE Digital Technologies and completed the acquisition of Stronghold Digital Mining, Inc., securing two high-potential Pennsylvania campuses. These actions significantly lowered Bitcoin mining capex and bolstered liquidity. Bitfarms also completed feasibility assessments for all U.S. sites, with development advancing through partnerships with ASG and World Wide Technology.
• Macquarie Financing Validates HPC Strategy: In April 2025, Bitfarms announced a private debt facility of up to USD 300 million with a division of Macquarie Group to support the initial development of its Panther Creek HPC campus. CEO Ben Gagnon emphasized that Panther Creek offers ideal conditions for HPC operations, including favorable scale, power availability, and connectivity. The financing is intended to minimize shareholder dilution while enabling timely construction. CFO Jeff Lucas noted that Macquarie’s involvement brings significant expertise and affirms the company’s strategy to scale its HPC footprint in the U.S.
• Liquidity Position and Bitcoin Market Operations: As of May 13, 2025, Bitfarms reported a liquidity position of approximately USD 150 million. During Q1 2025, the company sold 428 BTC for USD 37 million and, in April 2025, sold an additional 350 BTC, generating USD 30 million. These proceeds supported capital expenditures and operations under the company’s Bitcoin One market program. Bitfarms also raised USD 24 million through its at-the-market equity offering in January 2025 but did not issue additional shares through the program from late January to mid-May.
• Leadership and Organizational Developments Strengthen HPC Ambitions: Bitfarms enhanced its leadership team to support the strategic pivot, appointing James Bond as SVP of HPC/AI and Craig Hibbard as SVP of Infrastructure. These internal and external hires, combined with ongoing infrastructure and feasibility planning, demonstrate the company's commitment to building a competitive HPC and AI data center business in North America. Bitfarms believes its transformed energy portfolio and strengthened financial foundation position it well to capitalize on growth opportunities in both Bitcoin mining and HPC development.

Technical Observation (on the daily chart):

Bitfarms Ltd. (BITF) appears to be in the early stages of a potential trend reversal after a prolonged downtrend, with the 21-day moving average crossing above the 50-day—an encouraging bullish signal. However, the price has pulled back slightly and is now below the short-term average, indicating short-term weakness or consolidation. The RSI is neutral around 49.7, suggesting indecision in momentum.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is May 23,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.