$Bitfarms Ltd.(BITF)$ is scheduled to report its first quarter 2025 financial results on Wednesday, 14 May 2025, before the market opens. Management will also host a conference call on the same day at 8:00 a.m. ET to discuss the results.
EPS (Earnings Per Share): According to Zacks Investment Research, based on 3 analysts' forecasts, the consensus EPS forecast for Q1 2025 is $-0.04. This compares to a reported EPS of $-0.02 for the same quarter last year (Q1 2024). Tipranks could not provide any consensus EPS forecast.
Bitfarms (BITF) Last Positive Earnings Call Saw Share Price Increase By 9.09%
Bitfarms had a positive earnings call on 27 March 2025 which saw its share price increased by 9.09% since.
The earnings call reflects a positive transformation with strong revenue growth, strategic transactions, and expansion in energy capacity. The company is advancing its HPC and AI strategy, although regulatory uncertainties and high expansion costs pose challenges.
Bitfarms (BITF) Guidance
During the Bitfarms Fourth Quarter 2024 Earnings Conference Call, significant progress was highlighted, including a nearly threefold increase in hashrate to 18.6 Exahash Under Management since January 1, 2024. The company improved its efficiency by 45%, achieving a Q2 2025 efficiency guidance of 19 watts per terahash ahead of schedule. Bitfarms expanded its energy capacity by over 90% to 461 energized megawatts, reducing the expected average power price to $0.043 per kilowatt-hour. The strategic acquisition of Stronghold Digital Mining and sale of the Yguazu data center were key transformative moves, aligning Bitfarms as a US-focused company, with 33% of its energized megawatts now in the US and plans to increase this to nearly 80%.
The company also introduced its new Bitcoin One strategy, which generated a 135% return in US dollar terms from its Synthetic HODL program, and outlined its focus on diversifying into HPC and AI sectors. Bitfarms reported a direct mining profit of $26 million, a direct mining margin of 47%, and a net income of $15 million in Q4 2024.
If we looked at how Bitcoin’s on-chain volume have been increasing at an encouraging rate, this would probably sit well with BITF Bitcoin One strategy. If BITF could have a much better direct mining profit then it could be used to fund their diversification into HPC and AI sectors.
Key Recent Developments Leading into Q1 2025
Q4 2024 revenue was $56 million, up 21% from Q3. Net income for the fourth quarter was $15 million, compared to a net loss of $37 million in Q3.
Production and Operations: In its March 2025 update, Bitfarms reported an operational hashrate of 19.5 EH/s (Exahashes per second) and a fleet efficiency of 19 w/TH (watts per terahash). The company earned 280 Bitcoin on a proforma basis in March. The company also noted the successful closing of its acquisition of Stronghold Digital Mining and the strategic sale of its Yguazu, Paraguay data center.
These transactions are aimed at rebalancing Bitfarms' portfolio towards the U.S. with expectations of greater yields per megawatt, reduced power costs, and minimized 2025 capital expenditure requirements.
Completed acquisition of Stronghold Digital Mining and sale of Yguazu site in Paraguay. These moves enhanced portfolio size and improved operating economics.
Energy capacity increased by over 90% to 461 megawatts. Growth pipeline includes over 1.4 gigawatts, with 80% based in the US.
Engaged two new advisors and hired SVP of Infrastructure and SVP of HPC and AI to bolster HPC and AI capabilities.
Strategic Moves into High-Performance Computing (HPC) / AI: Bitfarms secured a private debt facility of up to $300 million from a division of Macquarie Group to fund high-performance computing (HPC) data center development at its Panther Creek site. 1 An initial draw of $50 million was expected at closing.
The company appointed James Bond as Senior Vice President of High-Performance Computing and Craig Hibbard as SVP of Infrastructure to advance its HPC/AI strategy. Initial studies reportedly confirmed that three Pennsylvania sites are well-suited for potential HPC conversion.
Bitfarms transformed from an international Bitcoin miner to a North American energy and compute company. Hashrate nearly tripled to 18.6 Exahash, and efficiency improved by 45%.
Generated a trading profit of approximately $18 million, achieving a 135% return in US dollar terms since its inception in Q4 2023.
Analyst Sentiment: Despite share price volatility, some analysts have maintained a bullish outlook on Bitfarms, with average 12-month price targets above $3 and a consensus rating of 'Strong Buy' noted in one source (though the number of analysts for this specific consensus isn't always clear across snippets). However, it's also noted that for the fiscal quarter ending March 2025, the consensus EPS forecast has decreased over the past month from $-0.03 to $-0.04.
Regulatory Uncertainty : Regulatory approvals needed for full utilization of power at Panther Creek and Scrubgrass sites, which may take 12 to 36 months.
High Cost of Expansion : Estimated savings of $325 million by selling Yguazu, highlighting high costs associated with infrastructure expansion.
HPC and AI Market Challenges : Long due diligence process with potential HPC/AI customers, adding complexity and time to monetization efforts.
Bitfarms (BITF) Price Target
Based on 8 analysts from Tiger Brokers offering 12 month price targets for Bitfarms in the last 3 months. The average price target is $3.25 with a high forecast of $4.50 and a low forecast of $2.00. The average price target represents a 200.93% change from the last price of $1.08.
Technical Analysis - Exponential Moving Average (EMA)
If we looked at how BITF have been trading, the bulls are not able to take control, as investors are still not convinced that BITF could diversify into HPC and AI, so this earnings could be important to show investors where BITF is at their strategic move.
RSI is not showing any potential momentum, so there are still volatilty for this stock, as investors might decide to take profit if there is any significant increase in its share price. I would think we could continue to watch this stock as the Bitcoin One program could be a potential profit generator for BITF in the long term.
Summary
BITF reporting period for its upcoming earnings report has seen significant operational changes and strategic initiatives by Bitfarms, particularly its focus on U.S. expansion and diversification into HPC/AI.
With Bitcoin price rising in the recent weeks ahead of BITF earnings, how would this improve BITF direct mining profits that it could actually use it to make strategic diversification into HPC and AI.
I think it would be important to watch the management's commentary on 14 May for details on financial performance and progress on these strategies.
Appreciate if you could share your thoughts in the comment section whether you think BITF would be able to report that its strategic initiatives on Bitcoin One could support its U.S. expansion and diversification into HPC and AI .
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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