Bitfarms Ltd

Bitfarms Ltd. (NASDAQ: BITF) is a Canada-based global Bitcoin and vertically integrated data center company that sells its computational power to one or more mining pools from which it receives payment in Bitcoin. It develops, owns, and operates vertically integrated mining facilities with in-house management and Company-owned electrical engineering, installation service, and multiple onsite technical repair centers. Its proprietary data analytics system delivers operational performance and uptime.

Key Business and Financial Updates:

• Bitfarms Q2 2025 Financial Performance and Strategic Positioning: Bitfarms Ltd. (NASDAQ: BITF), reported a robust financial performance for the second quarter of 2025, with revenue reaching USD 78 million, an impressive 87% year-over-year increase. Despite a decline in gross mining margin from 51% to 45% due to rising operational costs, the company achieved an adjusted EBITDA of USD 14 million (18% of revenue), up from USD 11 million, and maintained a strong liquidity position of USD 230 million, comprising USD 85 million in cash and USD 145 million in unencumbered Bitcoin. CEO Ben Gagnon emphasized the strategic pivot toward high-performance computing (HPC) and AI infrastructure, leveraging a 1.3 GW multi-year energy pipeline, with the Panther Creek campus in Pennsylvania poised to capture significant market share in an emerging AI hub.
• Expansion of HPC/AI Infrastructure and Energy Portfolio: Bitfarms is advancing its HPC/AI growth strategy through key partnerships, including a collaboration with T5 Data Centers to develop the Panther Creek campus, supported by a USD 300 million debt facility from Macquarie Group, with a master site plan submitted and a binding purchase agreement for 180 acres of contiguous land. The company’s energy portfolio expanded to 410 MW under management, with 82% in North America, and increased its Megawatts under Active Development (MWuD) to 430 MW, all in the U.S., while confirming a total pipeline exceeding 1.3 GW, with over 80% in the U.S., enhancing its scalability. This strategic move, coupled with the acquisition of additional land in Washington and energy capacity projections of 50 MW in 2026 and 300 MW by 2027 at Panther Creek, positions Bitfarms to meet surging AI infrastructure demand, supported by proximity to major clients like Amazon and CoreWeave.
• Corporate Initiatives and Operational Adjustments: Bitfarms demonstrated financial discipline with the initiation of a share buyback program on July 28, 2025, repurchasing 4.9 million shares (10% of the authorized float) at an average price of USD 1.24 by August 8, 2025, signaling confidence in its undervalued stock, alongside a commitment to transition to U.S. GAAP by year-end and establish a second principal executive office in New York City. The company plans to discontinue its Argentina mining operations by November 11, 2025, due to energy supply halts since May 12, 2025, expecting USD 18 million in proceeds from asset sales and liability reductions, which offsets a USD 15 million impairment charge and supports a net loss reduction to USD 29 million from USD 27 million year-over-year. With no further miner purchases planned and over USD 25 million in miners marketed for sale, Bitfarms is reallocating resources to HPC/AI, maintaining an operating hash rate of 17.7 EH/s and improving fleet efficiency to 17 w/TH.
• Financial Outlook and Investor Considerations: The company’s Q2 2025 financials reflect a net loss of USD 0.05 per share, improved from USD 0.07, despite an operating loss of USD 40 million, driven by non-cash charges, while Bitcoin production averaged USD 98,000 per BTC with a direct cost of USD 48,200, showcasing operational efficiency as of August 12, 2025. Bitfarms sold 1,052 BTC in Q2 for USD 100 million and holds 1,402 BTC, with USD 11 million in profits from the Bitcoin One program under review, providing liquidity to fund growth initiatives. Investors should view the company’s strong revenue growth, strategic U.S. pivot, and robust balance sheet as positive drivers, though risks from mining margin declines, Argentina closure costs, and market valuation perceptions warrant cautious optimism as Bitfarms transitions to a diversified infrastructure leader.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 82.87, upward trending and currently overbought, with expectations of a consolidation or an upward momentum if the stock price breaks the important resistance of USD 2.50-USD 2.70. Additionally, the stock's current positioning is above both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support levels. 

As per the above-mentioned price action, important resistance near USD 2.50-USD 2.70, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given for Bitfarms Ltd. (NASDAQ: BITF) at the closing price of USD 2.04, as of September 11, 2025. 

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 September 11, 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.