HC Wainwright & Co. Analyst Mike Colonnese added BitFarms stocks to the company’s top pick in the Bitcoin mining sector in 2025.
In a research note following Bitfarms’ fourth quarter 2024 revenue report and conference call, Colonnese said the market is “significantly underestimating” the company’s contraction mining operations and emerging AI strategies.
HC Wainwright has repeatedly reiterated BitFarms purchase ratings with a target of $3.50 per share.
Q4 Summary
BitFarms was reported on March 27th in the fourth quarter of 2024. Revenue of $56.2 million rose 25% quarterly, in line with analyst expectations. Self-employed revenues rose to $54.6 million, as the average Bitcoin (BTC) price was high and the hashrate rolled out by the end of the year increased by 13% to 12.8 EH/s. Total mining profit improved to $25.8 million at a margin of 47.3% from 38.4% in the last quarter.
Bitcoin production was immersed in 654 BTC as the network’s difficulty increased, but the company still recorded net profit of $15.2 million, or $0.03 per share. The adjusted EBITDA nearly tripled to $14.3 million.
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BitFarms increased its hashrate capacity to 18.6 EH/s, tripling its computing power from 6.5 EH/s at the end of 2023. The fleet upgrade has improved overall efficiency by 45%, with hash costs currently averaged between $20-22 per Petahash, below the current market price.
Despite this, Bitfarms stock has fallen 57% since November, compared to a 7% decline in the NASDAQ index over the same period. Colonnese sees the company’s current valuation as a sudden discount to peers trading nearly $85 million per EH, at around $25 million per EH.
Energy assets to promote AI growth
Beyond mining, Bitfarms has established itself as a North American energy and computing company.
Management said there is no immediate plan to buy more ASIC miners, and future growth will focus on building energy infrastructure to support AI and HPC workloads.
This shift includes recent acquisitions of base assets and the sale of the Paraguay-based Yguazu site, which will increase the US share of the energy portfolio from 6% to 33%. BitFarms is currently aiming to grow to 1.4 GW total energy capacity by 2028, with nearly 80% in the US.
Colonnese noted that HPC/AI opportunities have not yet been reflected in current forecasts, and that potential partnerships with HyperScaler can provide meaningful benefits.
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