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Tag: Bitfarms Ltd.

  • Bitfarms (BITF) Shares Rise On Riot Platforms’ Acquisition Proposal

    Bitfarms (BITF) Shares Rise On Riot Platforms’ Acquisition Proposal

    In response to a takeover proposal made today, shares of Bitfarms Ltd. (NASDAQ: BITF) are experiencing a notable rise on the US stock charts. As of the last check during the pre-market session, BITF stock was observed trading at $2.22, reflecting an increase of 9.90%.

    Riot Platforms’ Acquisition Offer

    The Bitfarms Board of Directors has received a formal proposal from Riot Platforms to purchase all outstanding shares at a price of US$2.30 per common share. Riot Platforms also made revelation of having a 9.25% share in Bitfarms, making it the company’s largest stakeholder. The proposal is priced at a 24% premium over the company’s one-month volume-weighted average share price as of May 24, 2024. The proposal places Bitfarms’ overall stock worth at around US$950 million.

    Up to 17% of the merged company may be owned by Bitfarms shareholders as a consequence of the offer, which combines cash and Riot common shares. This arrangement is designed to provide Bitfarms shareholders with immediate cash value and the opportunity for future value creation through a stake in a financially robust and strategically sound company led by experienced management.

    Financial Strength And Market Position

    Bitfarms is expected to gain significant financial advantages from Riot’s strong balance sheet, which includes minimal corporate debt, over US$700 million in cash, and 8,872 unencumbered Bitcoin as of April 30, 2024. Riot’s financial strength, approximately ten times that of Bitfarms, would support Bitfarms’ growth initiatives and enhance its access to public equity markets.

    Despite the initial rejection of Riot’s proposal by the Bitfarms Board and the ongoing legal concerns involving Bitfarms’ former CEO, Riot remains committed to pursuing this acquisition. Riot has disclosed its intentions directly to Bitfarms shareholders and plans to call a Special Meeting post Bitfarms’ Annual General and Special Meeting on May 31, 2024, to introduce new, independent directors to the Bitfarms Board.

    This strategic move underscores Riot’s confidence in the synergistic potential and future success of the combined company, promising substantial benefits to shareholders of both organizations.

  • Bitfarms (BITF) Stock Is Up 16%, How Is That Happening?

    Bitfarms (BITF) Stock Is Up 16%, How Is That Happening?

    Bitfarms Ltd. (NASDAQ: BITF) shares are exhibiting an upward trajectory on the US market today, experiencing a notable surge of 16.92% to attain a valuation of $2.50 in the current session. The ascent in Bitfarms stock value, despite the absence of immediate news, prompts an examination of recent developments to glean a more comprehensive understanding of the recent momentum in BITF stock.

    In its latest monthly update for November 2023, Bitfarms (BITF) disclosed a robust performance amidst escalating network difficulty stemming from increased miner participation. This trend is particularly noteworthy as the company approaches the 2024 Halving, prompting BITF to instigate a comprehensive fleet upgrade plan.

    A decisive move in this direction was the firm’s acquisition of 35,888 high-performance Bitmain T21 miners through a firm purchase order, slated for delivery between March and May 2024. BITF strategically deployed these newly acquired miners across seven of its eight existing farms in Quebec, concurrently with the development of the new Paso Pe site in Paraguay.

    The anticipated outcome of these initiatives is a projected 29% augmentation in operational capacity to 310 MW and an 88% boost in hashrate to 12 EH/s by the first half of 2024. Bitfarms’ strategic upgrade path positions the company for a substantial surge in hashrate during the first half of 2024, as it undertakes the installation of one of the largest fleets of air-cooled miners presently available.

    The meticulous alignment of capital allocation with a strategic miner deployment schedule not only ensures readiness for the upcoming Halving but also places the company in a favorable position to capitalize significantly on the anticipated Bitcoin bull market.

    While the production of 392 BTC in November represents a 1.5% decline from October, this decrease is attributed to a 19.0% increase in network difficulty, underscoring the persistent strong demand for miners leading up to the 2024 Halving.

    Over the eleven months concluding on November 30th, network difficulty surged by 92.2%, while the BTC price experienced a notable uptick of approximately 128.4%, resulting in a commendable 33.9% enhancement in production economics measured by USD/TH/day.

  • Bitfarms Ltd. (BITF) Stock Soaring in Premarket Despite any Visible Reason.

    Bitfarms Ltd. (BITF) Stock Soaring in Premarket Despite any Visible Reason.

    Bitfarms Ltd. (BITF) is an international Bitcoin self-mining firm. It utilizes onsite technical repair, exclusive data analytics along vertically integrated mining programs to bring high operational performance and uptime. The company has five industrial-level localities and each locality is driven 99% with eco-friendly hydropower.

    The price of BITF stock during the regular trading on February 4, 2022, was $3.81 with a 12.06% increase. At last check in the premarket on February 7, 2022, the stock further rocketed by 7.61%.

    BITF: CEO Comments

    On February 01, 2022, BITF updated about its Bitcoin production and mining programs for January 2022. Speaking at the occasion, Emiliano Grodzki, CEO of BITF stated that in January 2022 manufacture of 301 bitcoins showed a strong year-over-year incline of 51%. He further added that by bringing the company’s operations to Paraguay, the company expanded its aim of achieving 3 exahash per second by Q1 2022.

    BITF: Events and Happenings

    BITF announced on January 04, 2022, that its Executive management participated at the 24th Annual Needham Growth Virtual Conference on January 14, 2022. On December 31, 2021, BITF secured with Galaxy Digital LLC, a $100 million credit facility. On November 29, 2021, BITF updated about its Executive management’s presence at the B. Riley Securities Crypto Conference on December 8, 2021.

    BITF: Key Financials

    On November 15, 2021, BITF released its financial results for the quarter that ended September 30, 2021. Some of the focal points are as follows.

    Revenue

    Total revenues in the quarter were recorded to be $44.8 million compared to $6.7 million in the same period of 2020. The company observed a $37.9 million or 559% increase in revenue over the year. The company missed the estimated revenue by $1.83 million.

    EPS

    Diluted net income per share in Q3 2021 was reported to be $23.7 million, or $0.13 versus a net loss of $4.7 million, or $0.06 in the same period of 2020. The company missed the estimated EPS by -$0.13.

    Conclusion

    BITF stock is 18% up the past year and 42% down the past six months. The current hike in stock price is the result of uncertain factors as there is no recent SEC filing or event scheduled on the company’s calendar. As the company is approaching its quarterly revenue date, the analysts are expecting a $62.6 million revenue and $0.13 EPS from the company.