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On Thursday, H.C. Wainwright analyst Mike Colonnese confirmed a Buy rating with a $4.00 price target on Bitfarms Ltd. (NASDAQ:BITF), currently trading at $1.09. According to InvestingPro data, analyst consensus is strongly bullish, with price targets ranging from $2.00 to $4.50. The company is transitioning its focus towards the U.S. energy and compute sector, specifically in high-performance computing (HPC) and artificial intelligence (AI) data center development. The company is also noted for operating one of the most efficient cryptocurrency mining fleets in the industry.
Bitfarms has been actively laying the foundation for its expansion into the HPC/AI data center market. The firm has taken several steps, including hiring executives with relevant experience, partnering with experts in the field, and completing feasibility studies that demonstrate the suitability of its U.S. sites for HPC/AI operations. These sites were selected based on their immediate power capacity, fiber access, and proximity to major metropolitan areas. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 2.64, though it’s currently experiencing rapid cash burn - one of 12 key insights available to Pro subscribers.
To finance the initial development of its Panther Creek Data Center, Bitfarms secured a $300 million debt facility with Macquire. Of this, $50 million has already been drawn, and an additional $250 million tranche will become available after the completion of the master site plan, which is expected in the second quarter of 2025. The company’s management is concentrating on developing and monetizing Bitfarms’ 1 GW+ U.S.-based multi-year expansion pipeline to secure long-term, high-margin contracted HPC/AI colocation revenues.
While the company does not currently plan to expand its Bitcoin mining operations, H.C. Wainwright remains positive about this aspect of Bitfarms’ business for the year 2025. The analyst pointed out that Bitfarms’ Bitcoin mining business is significantly undervalued, with an implied equity valuation of approximately $30 million per exahash (EH) deployed, compared to the group average of around $120 million per EH. With a market cap of $606 million and revenue growth of 25.67% in the last twelve months, InvestingPro’s comprehensive analysis suggests the stock is currently undervalued, with analysts expecting profitability this year.
In summary, H.C. Wainwright’s endorsement of Bitfarms reflects confidence in the company’s strategic shift and potential for growth in the data center capacity market, as well as the value found in its existing Bitcoin mining operations.
In other recent news, Bitfarms Ltd. reported first-quarter results that did not meet analyst expectations. The company posted a loss of $0.07 per share, which was wider than the anticipated loss of $0.02 per share. Revenue for the quarter was $66.85 million, falling short of the consensus estimate of $70.41 million. Despite the earnings miss, Bitfarms experienced a 33% year-over-year increase in revenue, reaching $66.8 million, up from $50.3 million in Q1 2024. This growth was attributed to an increase in the average Bitcoin hashrate and higher average Bitcoin prices. However, the company mined 693 Bitcoin in the quarter, a 27% decrease from the previous year’s 943 Bitcoin. CEO Emiliano Grodzki highlighted the acquisition of Stronghold and the sale of their Paraguay facility as strategic moves to enhance their North American growth prospects. Bitfarms concluded the quarter with 1,492 Bitcoin on its balance sheet, valued at approximately $123.2 million as of March 31, 2025.
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