It wasn’t long ago when we first heard about cryptocurrency stock Bitfarms’ (TSE:BITF) plans to upgrade its capacity for mining Bitcoin. Now, however, we discover that its ability is somewhat on the decline ahead of those upgrades, and investors are oddly pleased about it. Bitfarms shares were up nearly 2.5% in Monday afternoon’s trading despite the revelation that mining is actually down.
The latest report noted that Bitfarms generated 286 Bitcoin in March 2024. However, back in February—a month that was two days shorter, no less—Bitfarms generated 300 Bitcoin. That’s down 5% on a month-to-month basis, reports note, and down a full third from the March 2023 figures. Of the 286, Bitfarms kept two of them and sold the rest as part of “treasury management” operations, bringing in a hefty $19.2 million payday for the company. The issue? A set of “facility upgrades” that hampered operations for a little while, as well as a 4.8% increase in “network difficulty” as the upcoming halving approaches.
Expansion Efforts Carrying On
While this isn’t exactly the best news, it’s clear that the problems are likely temporary, and Bitfarms is prepared to carry on. The declines are fairly visible—back in February we saw a drop in production from 357 in January to just 300 in February—so bringing in some new hardware should go a long way toward stemming the tide of the drops we’re seeing. As long as Bitcoin prices remain as high as they are—or simply don’t retract too far—the end result should be a positive outcome for investors.
Is Bitfarms a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:BITF stock based on four Buys assigned in the past three months, as indicated by the graphic below. After a 138.76% rally in its share price over the past year, the average TSE:BITF price target of C$6.17 per share implies 99.48% upside potential.
