Bitfarms (NASDAQ:BITF) Shares Rise 8.4% - Is It Worth Buying?

Bitfarms Ltd. (NASDAQ:BITF) saw its share price increase by 8.4% on Wednesday. The stock reached a peak of $1.08 before settling at $1.10. Around 12,844,589 shares were traded during the day, which is a significant drop of 56% compared to the average trading volume of 28,988,753 shares. The previous closing price was $1.01.

Expert Opinions on Bitfarms

Several research analysts have recently shared their views on Bitfarms. Stifel Canada upgraded the company's rating from "hold" to "moderate buy" on November 22nd. Alliance Global Partners initiated coverage on Bitfarms on December 4th, assigning a "buy" rating and setting a target price of $6.00. Keefe, Bruyette & Woods also began their coverage on January 8th, giving it an "outperform" rating. Overall, one analyst ranked the stock as a hold, while six have given it a buy rating. According to MarketBeat data, the consensus holds a rating of "Moderate Buy" with a price target of $4.05.

Assessing Bitfarms Stock Performance

Currently, Bitfarms has a market capitalization of $515.28 million, a negative price-to-earnings ratio of -3.01, and a beta of 3.68. The company's quick ratio is 3.68, the current ratio stands at 3.70, and it maintains a low debt-to-equity ratio of 0.04. The stock’s 50-day simple moving average is $1.37, while the 200-day average is $1.77.

Institutional Investment Trends

Hedge funds and institutional investors have recently adjusted their stakes in Bitfarms. Van ECK Associates Corp raised its holdings in the company by 106.6% in the fourth quarter, now owning 12,553,729 shares valued at $18,705,000 after acquiring an additional 6,477,985 shares. Geode Capital Management LLC grew its position by 4.5% during the third quarter and now holds 1,879,454 shares worth $3,965,000. Barclays PLC also entered the scene with a new stake valued at around $161,000 in the third quarter. State Street Corp increased its holdings by 1.3%, owning 4,917,729 shares worth $10,376,000. Additionally, Baader Bank Aktiengesellschaft boosted its stake by an impressive 245.8% in the fourth quarter, now holding 700,300 shares worth $1,043,000. Approximately 20.59% of the company's stock is held by institutional investors.

Overview of Bitfarms

Bitfarms Ltd. specializes in mining cryptocurrency coins and tokens across Canada, the United States, Paraguay, and Argentina. The company operates server farms primarily focused on validating transactions on the Bitcoin blockchain, earning cryptocurrency through block rewards and transaction fees. Additionally, it offers electrical services to residential and commercial clients in Quebec, Canada.

Investment Considerations

Before making any investment decision related to Bitfarms, it is advisable to consider the current market ratings. While Bitfarms holds a Moderate Buy rating among analysts, top-rated analysts have identified five alternative stocks that they believe present better buying opportunities. It is essential to do thorough research and consider diverse opinions when investing in volatile sectors such as cryptocurrency mining.

Bitfarms, Stocks, Investment