Analyst Anticipates 75% Upside for Bitfarm’s Undervalued Stock
H.C. Wainright analysts are optimistic about Bitfarm’s growth strategy and believe that the stock could potentially increase by 75%. In a recent market report, they expressed confidence in Bitfarm’s ability to expand its market share and reduce production costs by 2024. The analysts noted that Bitfarm has taken steps to upgrade its mining fleet and implement a growth strategy, which they expect will lead to a decrease in electricity costs.
Bitfarm is a global Bitcoin mining company that operates 12 mining facilities worldwide. Despite concerns about macro and geopolitical factors causing short-term volatility, the H.C. Wainright analysts have a positive outlook on Bitcoin’s price in the medium and long term. They consider Bitfarm shares to be an attractive investment opportunity and have given them a “Buy” rating, with a price target of $4. This implies a potential upside of 75% from the current trading price of $2.40. The analysts believe that Bitfarm’s growth plans and operational performance justify this optimistic projection.
Bitfarm aims to improve its energy efficiency and reduce direct production costs through an upgraded and more energy-efficient mining fleet. The report estimates that this could result in a 30% decrease in direct production costs per Bitcoin mined, leading to improved gross margins. Additionally, Bitfarm plans to increase its hash rate by 223% year over year in 2024, with the goal of becoming one of the largest public miners in terms of scale.
The company currently operates its mining facilities using over 75% renewable hydropower, ensuring nearly 100% uptime. In 2023, Bitfarm achieved the highest utilization rate among miners, with over 4 EH/s, and earned an estimated 11% more BTC per EH/s compared to its peers.
Following the termination of Geoff Morphy on May 13, Bitfarm has begun the search for a new CEO. In the meantime, Co-Founder and Chairman Nico Bonta will serve as the interim CEO until a successor is found, which is expected to happen in the next few weeks. The transition in leadership may raise concerns for potential new investors, but the analysts believe that Bitfarm’s management team’s expertise and capability will help maintain the company’s growth initiatives in the near term.
