Bitfarms Ltd. (BITF): A Bull Case Theory

We came across a bullish thesis on Bitfarms Ltd. on wallstreetbets subreddit by checazzo01. In this article, we will summarize the bulls’ thesis on BITF. Bitfarms Ltd. 's share was trading at $2.0400 as of September 11th. BITF’s trailing and forward P/E were 28.31 and 84.03 respectively according to Yahoo Finance.

Bitfarms Inc. (BITF), a company traditionally known for Bitcoin mining, is emerging as a speculative but potentially high-reward play in the AI and high-performance computing (HPC) infrastructure space. While historically BITF has focused on mining, achieving nearly 50% margins per BTC with $48.2k direct cost versus $98k revenue per Bitcoin, the company is now pivoting toward AI infrastructure development, leveraging its proven operational capabilities and strong cash generation.

BITF’s Panther Creek data center campus in Pennsylvania exemplifies this shift, offering 350–410 MW capacity by 2027, backed by abundant, low-cost energy from natural gas, nuclear, and coal, favorable permitting, and the PJM Interconnection grid serving 13 states. The campus will be built by T5 Data Centers, a reputable operator with over 3 GW managed and a flawless uptime record. BITF is also expanding its footprint with additional prime land in Moses Lake, Washington, located within the largest West Coast data center cluster.

The company is well-capitalized for this pivot, with $230 million in liquidity, $300 million in dedicated infrastructure financing from Macquarie, and consistent free cash flow of approximately $8 million monthly, providing a strong runway for the high CapEx requirements of AI/HPC infrastructure. While BITF currently lacks committed contracts or long-term backlogs, management has shown a willingness to invest in growth and reposition the business, potentially unlocking significant value.

Valuation remains compelling, with BITF trading at 2.9x TEV/Revenue LTM and 1.65x TEV/Revenue NTM, materially below peers such as CoreWeave, CLSK, and IREN. While speculative and execution risk remains, including permitting, power procurement, and talent acquisition, BITF offers a unique combination of proven operational success, strategic expansion into AI/HPC infrastructure, and attractive relative valuation, presenting both a high-risk and high-reward investment opportunity.

Previously we covered a bullish thesis on IREN Limited (IREN) by Industrial Tech Stock Analyst and Money Machine Newsletter in February 2025, highlighting its pivot from Bitcoin mining to AI-ready, renewable energy-powered data centers, strong financials, and potential 10x upside. The stock has appreciated approximately 152% since our coverage. The thesis still stands as IREN scales AI computing. checazzo01 shares a similar thesis but emphasizes Bitfarms’ AI/HPC expansion and strong liquidity.

Bitfarms Ltd.  is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held BITF at the end of the second quarter which was 11 in the previous quarter. While we acknowledge the potential of BITF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.