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 praises the company’s operational improvements and its move towards high-performance computing (HPC) and AI.
Colonnese believes the market is undervaluing Bitfarms. He reiterated a buy rating with a $3.50 price target, suggesting a meaningful upside from its current price. In Q4 2024,Bitfarms reported $56.2 million in revenue, up 25% from the previous quarter. Self-mining revenue reached $54.6 million, thanks to higher bitcoin prices and increased hashrate. Gross mining profit improved to $25.8 million,with a 47.3% margin. Despite a dip in Bitcoin production, the company posted net income of $15.2 million, a strong rebound from a Q3 loss. Adjusted EBITDA nearly tripled to $14.3 million. The company’s hashrate capacity grew to 18.6 EH/s, nearly tripling from 6.5 EH/s in 2023.Fleet upgrades boosted efficiency by 45%, lowering hash costs.
Despite these achievements,Bitfarms’ stock has fallen 57% since November. Colonnese sees this as a steep discount compared to peers. The company is also expanding into energy infrastructure to support AI and HPC workloads. This includes acquiring Stronghold assets and selling its Paraguay site, increasing its U.S. energy portfolio to 33%. By 2028, Bitfarms aims for 1.4 GW of energy capacity, with 80% in the U.S. A potential partnership with a hyperscaler could provide further upside.
