H.C. Wainwright reiterates Buy rating on Bitfarms stock, citing HPC/AI potential

Investing.com - H.C. Wainwright has reiterated its Buy rating and $4.00 price target on Bitfarms Ltd. (NASDAQ:BITF), highlighting the cryptocurrency miner’s expansion into high-performance computing and artificial intelligence data centers. According to InvestingPro data, the stock appears undervalued at its current price of $1.27, with analysts setting targets between $2.00 and $4.00.

The research firm noted that Bitfarms shares outperformed Bitcoin on Tuesday, gaining 3.3% compared to Bitcoin’s 1% increase, as investors focused on the company’s HPC/AI initiatives despite what it described as "underwhelming" second-quarter 2025 results. InvestingPro data shows the company’s revenue grew by 25.7% in the last twelve months, with analysts expecting 65% growth this fiscal year.

Bitfarms plans to begin construction on its first 50 MW tier 3 HPC/AI data center project at its Panther Creek campus in Pennsylvania in early 2026, following completion of civil works in the coming months, with management reporting strong demand from prospective tenants.

The company is currently generating over $8 million in monthly free cash flow from its Bitcoin mining operations and has repurchased 4.9 million shares under its 49.9 million share buyback authorization.

H.C. Wainwright characterized Bitfarms as "one of the most underappreciated stories" in its coverage universe, suggesting the stock could rise as the valuation discount on its mining operations narrows and as it makes progress on its HPC/AI data center business, which is not yet generating revenue.

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 $0.02 loss. Revenue for the quarter was $66.85 million, falling short of the projected $70.41 million. Additionally, H.C. Wainwright maintained a Buy rating on Bitfarms stock with a $4.00 price target, highlighting the company’s ongoing transition towards the U.S. energy and compute sector, particularly in high-performance computing and AI data center development.

In the broader cryptocurrency market, stocks linked to digital currencies experienced fluctuations. Cryptocurrency-exposed stocks initially climbed as Bitcoin surged past $118,000, marking a new high. However, these stocks later experienced declines following Moody’s downgrade of the U.S. credit rating, reflecting increased risk aversion. Companies such as Coinbase, MicroStrategy, Hive Digital, and Bitfarms itself saw declines in premarket trading. Despite these challenges, Bitfarms continues to lay the groundwork for its expansion into the high-performance computing sector, with strategic hires and partnerships.

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