H.C. Wainwright analyst Mike Colonnese reiterated a Buy rating on Bitfarms (BITF – Research Report) yesterday and set a price target of $3.50.
Mike Colonnese has given his Buy rating due to a combination of factors that highlight Bitfarms’ potential in the BTC mining sector. The company has significantly enhanced its mining operations, scaling its total operating capacity to 18.6 EH/s, which marks a substantial increase from the previous year. This expansion, coupled with transformative fleet upgrades, has improved the overall efficiency of Bitfarms’ operations, reducing hash costs by approximately 45%. These advancements have positioned Bitfarms as one of the most attractively valued miners, especially considering the market’s undervaluation of its operations compared to its peers.
Additionally, Bitfarms is strategically shifting its focus towards developing energy infrastructure in the U.S. to leverage the growing demand in the HPC/AI market. With recent acquisitions and strategic sales, the company is transforming into a North American energy and compute entity. The expansion of its energy portfolio, particularly in Pennsylvania, is expected to support AI workloads, offering potential upside not yet factored into current models. This strategic pivot, along with recent key hires and industry engagements, suggests promising developments in the AI sector, further supporting the Buy rating.
Colonnese covers the Financial sector, focusing on stocks such as HIVE Digital Technologies, Cleanspark, and Coinbase Global. According to TipRanks, Colonnese has an average return of 24.0% and a 37.61% success rate on recommended stocks.