For investors bullish on Bitcoin (BTC-USD), Bitfarms (NASDAQ:BITF) is an attractive pick. The Bitcoin miner looks undervalued even after a rally of 100% in the last 12 months. With significant expansion plans, the company is positioned for stellar revenue and cash flow growth. To put things into perspective, Bitfarms reported a hash rate capacity of 6.5EH/s as of January. The Company is targeting a capacity of 12EH/s in the first half of the year. Capacity is further expected to expand to 21EH/s by the end of the year. With visibility to triple capacity, the growth outlook is robust. It’s also worth noting that Bitfarms reported a liquidity buffer of $117 million as of December 2023. Further, the company expects to be debt-free this month. Therefore, financial flexibility is high for financing aggressive growth. If Bitcoin trades at new all-time highs this year, Bitfarms will generate ample cash flows to pursue the next leg of expansion in 2025.
I got a amazing pick I will prob invest in next week but this may be a second buy next week love this stock!
Interesting timing because the halvening is happening in April. Block rewards get cut in half, so miners either need to double up on their hash rate, or expect to see smaller mining operation become unprofitable, thus hash rate reducing and making it easier for existing larger miners.
