Bitcoin miner Bitfarms has announced a bold move to repurchase up to 10% of its outstanding shares, signaling confidence in its valuation and future growth strategy.
The company also unveiled ambitious plans to evolve into a major player in the high-performance computing (HPC) and artificial intelligence (AI) infrastructure space, an emerging opportunity that could significantly reshape its business model.
A Share Buyback Signaling Confidence
In a statement released this week, Bitfarms confirmed that it wants to repurchase up to 49.9 million shares, equivalent to roughly 10% of its publicly traded float, over the next 12 months. The Toronto Stock Exchange (TSX) has approved the program, allowing Bitfarms to buy back a maximum of 494,918 shares per day, which represents approximately 25% of the average daily trading volume.
The share repurchase plan is set to commence on July 28, 2025, and all shares acquired under the program will be cancelled. By reducing the number of shares outstanding, Bitfarms intends to increase earnings per share and boost shareholder value, a move often interpreted by investors as a sign of management’s confidence in the company’s long-term prospects.
“We strongly believe Bitfarms is undervalued,” said CEO Ben Gagnon, adding that the company is undergoing a transformation that the market is not yet fully appreciating.
From Bitcoin Mining to AI and HPC Infrastructure
Founded in 2017, Bitfarms operates a network of bitcoin mining data centers across the United States, Canada, Argentina, and Paraguay. These locations were strategically selected for their access to low-cost electricity, a critical factor in the energy-intensive process of mining Bitcoin.
However, the company’s ambitions are now evolving. With the global boom in artificial intelligence, fueled by demand for advanced models like ChatGPT and image/video generation systems, there is an escalating need for AI-optimized data centers that can provide massive computational power.
Bitfarms is leveraging its existing infrastructure, its mining facilities, robust electrical setups, and industrial cooling systems, to enter the HPC and AI data center market. This pivot allows the company to diversify beyond Bitcoin mining, a sector that faces increasing challenges due to regulatory uncertainty, halving cycles, and fluctuating margins.
“AI workloads require many of the same fundamentals we’ve already optimized for Bitcoin mining,” explained Gagnon. “We already have the real estate, the power infrastructure, and the cooling. It’s a natural next step for us.”
Bitcoin Mining: A Tough but Resilient Industry
The Bitcoin mining industry has undergone substantial transformation in recent years. Every four years, a process called the Bitcoin Halving reduces the reward that miners receive per block mined by 50%. This cyclical reduction puts downward pressure on miner revenues unless the Bitcoin price rises significantly.
After the most recent halving in April 2024, mining economics tightened again, pushing inefficient miners out of the market. Companies like Bitfarms that have access to cheap energy and operate at scale are better positioned to survive, but even they must innovate to maintain profitability.
Adding to the pressure is the fact that public Bitcoin miners are typically valued at relatively low earnings multiples, generally between 3x to 5x. In contrast, companies providing AI data center services or HPC capabilities often enjoy valuation multiples of 20x to 30x, reflecting their strong growth outlook and higher margins.
This discrepancy offers Bitfarms an opportunity: if it can successfully demonstrate a credible transition to HPC services, a major rerating of the stock could follow.
Strategic Exit from Paraguay and Refocus on the U.S.
As part of its strategic realignment, Bitfarms recently sold its mining facility in Paraguay to Hive Digital, another crypto infrastructure company. The decision underscores Bitfarms’ intent to streamline operations and reallocate resources to more promising markets, primarily the United States, where it plans to expand its HPC offerings.
The sale also reinforces a shift from geographic diversification to sectoral diversification, from crypto mining to compute power infrastructure.
Market Reaction and Skepticism Remain
Despite its ambitious vision, the market remains cautious. Investors are waiting to see tangible contracts in the HPC and AI space before assigning meaningful value to the company’s transformation narrative. For now, analysts still view Bitfarms primarily through the lens of a crypto miner, and the stock remains priced accordingly.
The absence of confirmed HPC revenue streams means that Bitfarms is still considered speculative. As a result, the share buyback is not only a move to reward shareholders but also an attempt to support the stock price while the company executes on its new strategy.
Looking Ahead: Can Bitfarms Deliver on Its Vision?
If Bitfarms secures even a handful of significant HPC or AI infrastructure deals, the impact on its valuation could be dramatic. The market’s appetite for AI compute power continues to outpace supply, and hyperscale players such as Amazon, Microsoft and Google are aggressively seeking new capacity.
Given its energy-rich locations and operational experience in high-density workloads, Bitfarms is well-positioned to capitalize if it can prove itself as a reliable AI infrastructure provider.
In summary, Bitfarms is betting big on its future, not just by repurchasing shares, but by betting on a transformational shift from a cyclical, margin-compressed industry to a growth sector brimming with potential.
Whether it succeeds or not will depend on execution. But for now, one thing is clear: Bitfarms sees itself as more than a miner. It wants to be part of the future of compute.
