Analyst Mike Colonnese has included Bitfarms stock among his top choices in the Bitcoin mining industry for 2025, highlighting notable operational advancements and a pivot toward high-performance computing (HPC) and artificial intelligence (AI) infrastructure.
In a research update following Bitfarms’ Q4 2024 earnings release and conference call, Colonnese remarked that the market is “considerably undervaluing” the company’s expanded mining operations and its nascent AI strategy.
The firm has maintained its Buy rating on Bitfarms with a price target of $3.50 per share, suggesting potential growth of over threefold from its current price of approximately $0.98.
Q4 Summary
On March 27, Bitfarms disclosed its Q4 2024 results. Its revenue of $56.2 million increased by 25% quarter-over-quarter, meeting analyst expectations. Self-mining revenue climbed to $54.6 million, fueled by higher average Bitcoin (BTC) prices and a 13% rise in deployed hashrate to 12.8 EH/s by year-end. Gross mining profit rose to $25.8 million, achieving a margin of 47.3%, up from 38.4% in the prior quarter.
Although Bitcoin production fell to 654 BTC due to heightened network difficulty, the company still recorded a net income of $15.2 million, or $0.03 per share, a robust recovery from a net loss of $36.6 million in Q3. Adjusted EBITDA surged to $14.3 million, nearly tripling.
Bitfarms has increased its hashrate capacity to 18.6 EH/s, nearly tripling its computing power from 6.5 EH/s at the end of 2023. Fleet upgrades have also led to an overall efficiency boost of 45%, with hash costs averaging around $20–$22 per petahash, significantly lower than the current market hash prices of about $50/PH.
Despite these advancements, Bitfarms’ stock has dropped 57% since November, in contrast to a 7% decline in the Nasdaq index during the same timeframe. Colonnese notes that the company’s current valuation of around $25 million per deployed EH is a considerable discount compared to peers, which trade closer to $85 million per EH.
Energy Assets to Fuel AI Expansion
Looking ahead, Bitfarms is positioning itself as an energy and computing company in North America.
Management indicated during the call that there are no immediate plans to buy additional ASIC miners, with future growth oriented towards enhancing energy infrastructure for AI and HPC workloads.
This strategic shift includes a recent acquisition of Stronghold assets and the sale of its Yguazu site in Paraguay, boosting the U.S. portion of its energy portfolio from 6% to 33%. Bitfarms plans to expand to a total energy capacity of 1.4 GW by 2028, with nearly 80% located in the U.S.
Colonnese mentioned that the HPC/AI potential is not yet accounted for in existing projections, and a prospective partnership with a hyperscale company could offer substantial upside.