Bitfarms is making waves on Wall Street after H.C. Wainwright analyst Mike Colonnese labeled the stock “significantly undervalued” due to its operational strength and strategic pivot toward high-performance computing (HPC) and artificial intelligence infrastructure. In a recent research note, Colonnese added Bitfarms to the firm’s top Bitcoin mining stock picks for 2025. Following the release of Bitfarms’ Q4 2024 earnings, the firm reiterated a Buy rating and set a $3.50 price target—more than triple the current market value of around $0.98. Colonnese argued that the market is underestimating both the company’s scale in Bitcoin mining and its entry into adjacent tech sectors.

Strong Q4 Performance Supports Bullish Case

Revenue and profit margins saw major improvements despite market pressure

Bitfarms reported $56.2 million in Q4 revenue, a 25% quarter-over-quarter increase. Self-mining revenue reached $54.6 million, thanks to a rise in average Bitcoin prices and a 13% jump in deployed hashrate, which hit 12.8 EH/s by year-end. The company posted $15.2 million in net income and a notable improvement in gross mining margin to 47.3%.

Adjusted EBITDA nearly tripled to $14.3 million, while the efficiency of operations increased sharply. Hash costs now average $20–$22 per PH, significantly under current market rates of around $50. These gains come despite a drop in Bitcoin production due to higher network difficulty.

Strategic Shift to Energy and AI Compute

Bitfarms transitions from pure mining to diversified infrastructure player

Looking beyond Bitcoin, Bitfarms is reshaping itself into a broader energy and compute company focused on North America. Recent moves include the acquisition of Stronghold assets and the sale of its Paraguay-based Yguazu site, raising its U.S. energy footprint from 6% to 33%.

The company plans to grow its total capacity to 1.4 GW by 2028, with nearly 80% based in the U.S. Bitfarms’ strategy involves halting new ASIC purchases and redirecting capital to build out energy infrastructure for AI and HPC workloads. Colonnese suggested that this pivot is not yet reflected in projections and that a partnership with a hyperscaler could unlock substantial upside.

Valuation Lags Behind Peers Despite Upside Potential

Analyst sees current valuation as a major disconnect

Bitfarms currently trades at a valuation of about $25 million per EH, well below peers averaging $85 million per EH. Despite increasing hashrate and profitability, Bitfarms stock is down 57% since November, compared to just a 7% dip in the Nasdaq over the same time frame.

The analyst views this valuation gap as an opportunity, especially as Bitfarms accelerates into emerging sectors. With market sentiment still tethered to Bitcoin volatility, the company’s pivot to energy and AI could serve as a stabilizing force and growth engine.

From Crypto Miner to Infrastructure Leader

Long-term transformation sets the stage for new investor interest

Bitfarms is positioning itself for a post-mining future where compute power and energy infrastructure become critical assets. The shift appeals not only to crypto investors but also to those looking for exposure to AI and green energy solutions.

Analysts see Bitfarms’ evolving business model as aligning with broader macro trends in data center demand, AI acceleration, and decentralized energy systems. If executed well, this transformation could elevate Bitfarms far beyond its Bitcoin mining roots.

Bitfarms Q4 2024 Earnings Summary

| Metric | Value | | ------------ | ------------- | | Revenue | $56.2 Million | | Gross Margin | 47.3% | | Net Income | $15.2 Million | | Hashrate | 12.8 EH/s |