Bitfarms (NASDAQ:BITF) Hits 1-Year Low: Reasons Behind the Decline

On December 30, 2024, the stock price of Bitfarms Ltd. (NASDAQ:BITF) reached a new 52-week low during midday trading. The shares dropped to as low as $1.50 before closing at $1.53. This was a significant decline from its previous closing price of $1.63, with a trading volume of over 7.8 million shares.

Analysts’ Perspectives

Recent comments from various brokerage firms shed light on the company's performance. Alliance Global Partners recently started coverage on Bitfarms, giving it a "buy" rating along with a price target of $6.00. HC Wainwright maintained a "buy" rating as well, with a target set at $4.00. Cantor Fitzgerald echoed this sentiment by rating the stock as "overweight" while setting a price objective of $5.00. Additionally, Stifel Canada upgraded Bitfarms from a "hold" to a “moderate buy” rating. Currently, one analyst has a hold rating, while five have issued buy ratings. The average rating from analysts is categorized as a “Moderate Buy,” with a consensus price target of $4.05.

Performance Overview

Bitfarms' stock saw a decline of 6.1% recently. The company possesses a low debt-to-equity ratio of 0.04, alongside a quick ratio of 3.68 and a current ratio of 3.70. Its 50-day simple moving average stands at $2.04, while the 200-day simple moving average is $2.23. The market capitalization of Bitfarms is approximately $693.53 million, with a price-to-earnings ratio of -4.25 and a beta of 3.59, indicating high volatility.

Institutional Investors' Activity

Several institutional investors have adjusted their stakes in Bitfarms recently. For example, 272 Capital LP acquired a new stake valued around $222,000 in the third quarter. Barclays PLC also entered a new position worth approximately $161,000. Meanwhile, Geode Capital Management LLC increased its holdings by 4.5%, now owning nearly 1.88 million shares valued at about $3.97 million after acquiring additional shares. Other investors, including the Public Employees Retirement System of Ohio and XTX Topco Ltd, also purchased new stakes. Overall, 20.59% of Bitfarms' stock is held by institutional investors.

About Bitfarms

Bitfarms Ltd. is a cryptocurrency mining company based in Canada, with operations also in the United States, Paraguay, and Argentina. The company primarily focuses on mining Bitcoin and validating transactions on the Bitcoin blockchain, which generates earnings from block rewards and transaction fees. Additionally, Bitfarms offers electrician services to commercial and residential sectors in Quebec, Canada.

Bitfarms, Stocks, Low