H.C. Wainwright & Co. analysts have reiterated their “Buy” rating on Bitfarms, a Bitcoin mining company, despite a recent 15% decline in the stock price. This drop came after Bitfarms announced delays in reaching its year-end 2024 expansion targets. The company shared this information with crypto.news.
Although Bitfarms reported positive third-quarter results with revenue growth of 8% to $44.9 million, it disclosed that it would be postponing its hash rate goal of 21 exahashes per second (EH/s) from late 2024 to early 2025. Additionally, Bitfarms withdrew its 2025 hash rate projection of 35 EH/s due to logistical setbacks related to construction delays, miner shipment delays, and the need for warranty services on underperforming equipment.
Currently, Bitfarms operates at a hash rate of 11.9 EH/s. Despite the challenges faced, analysts highlighted that the company has made significant upgrades by replacing 50,000 older mining machines with newer, more efficient models across ten data centers. This upgrade led to an 83% increase in the company’s hash rate capacity this year and improved fleet efficiency by 40%, achieving a measure of energy efficiency in mining at 21 joules per terahash.
In addition to focusing on Bitcoin mining, Bitfarms is exploring other options for the future, such as expanding into high-performance computing and artificial intelligence operations. The company recently acquired new sites in Pennsylvania to facilitate further growth in the U.S. Despite rising direct costs for Bitcoin mining due to seasonal and regional energy price fluctuations, Bitfarms managed to reduce its electricity cost per terahash, showcasing gains in mining efficiency.
Looking ahead, analysts have adjusted their revenue forecasts for Bitfarms. They raised the 2024 estimate to $190.7 million due to a positive trend in Bitcoin prices. However, they lowered the 2025 projection to $388.9 million, anticipating a slower hash rate expansion than initially expected. Despite these changes, the analysts maintain confidence in Bitfarms’ long-term prospects and have reiterated a $4 price target for the company.
