- Bitfarms’ shares rose nearly 14% after announcing a $64 million, 10% share buyback plan.
- The company is leveraging its mining infrastructure to expand into AI, highlighted by the recent Stronghold Digital Mining acquisition.
- With 15 global data centres, Bitfarms is cementing its position as a leader amid challenges in the Bitcoin mining sector.
Shares of Bitfarms, a Nasdaq- and Toronto-listed Bitcoin mining company, rose nearly 14% Tuesday following the announcement of a major share buyback program.
The Toronto-based firm has been authorised to repurchase up to 49,943,031 shares—representing about $64 million at current prices, or 10% of its public float—signalling management’s confidence in the company’s future.
CEO Ben Gagnon described Bitfarms’ shares as “undervalued,” citing the market’s underappreciation of its Bitcoin business and the company’s high-performance computing capabilities.
Share buybacks, in which companies purchase their stock to reduce supply and potentially boost share price, are often interpreted as a bullish signal by investors.
The boost comes as Bitfarms is increasingly pivoting toward artificial intelligence (AI) alongside mining.
In March, the company acquired Stronghold Digital Mining to leverage synergies between energy-intensive mining data centres and AI, given both industries’ similar infrastructure needs.
Bitcoin mining remains a volatile and competitive industry due to the fluctuating price of Bitcoin and rising difficulty in minting new coins, factors that frequently squeeze miners’ margins.
Despite these challenges, Bitfarms stands out with 15 data centres across Canada, the U.S., Argentina, and Paraguay—making it one of the largest Bitcoin miners globally.
Edited by Annette George
