While Bitfarms (TSE:BITF) has made a name for itself on the back of its cryptocurrency mining operations before, it is considering a move that may make it a name in a whole other way. Bitfarms is looking to make a move to data centers driven by artificial intelligence (AI), and that idea sent Bitfarms shares up nicely, adding nearly 2% in Friday morning’s trading.
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Bitfarms has brought in two consultants, reports note, in a bid to determine how Bitfarms can effectively branch out into AI data centers. More specifically, Bitfarms has engaged World Wide Technology and Appleby Strategy Group, who are analyzing Bitfarms’ North American operations to see how Bitfarms can supply such services with the processing power it already has on hand.
With the demand for such operations on the rise, and Bitcoin approaching a theoretical limit, starting to look at what happens when all the Bitcoin is mined makes a certain amount of sense. Indeed, World Wide and Appleby will also be handling marketing efforts, promoting the Bitfarms facilities for such operations. However, given that the last Bitcoin is expected to be mined sometime in 2140, there is little urgency around making such a pivot.
Selling Off Some Operations
This comes at a particularly odd time for Bitfarms. It recently sold off its partially-completed Paraguay facility to HIVE Digital Technologies (HIVE) for $85 million. The move will allow HIVE to access the growing hydroelectric power market in Paraguay, and also give HIVE more power with which to mine cryptocurrency.
The deal was announced earlier this week, but the binding letter of intent has now been signed and gives Bitfarms some capital to put behind that move into AI data centers as well. The Paraguayan site, meanwhile, will now be developed out by HIVE instead of Bitfarms.
Is Bitfarms Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:BITF stock based on five Buys assigned in the past three months, as indicated by the graphic below. After a 29.13% rally in its share price over the past year, the average TSE:BITF price target of C$6.20 per share implies 183% upside potential.
