Bitfarms Announces $50M Share Buyback Boosting Stock

Bitfarms, a Nasdaq-listed Bitcoin mining company, announced a corporate share buyback program on Tuesday, leading to an 18% surge in its stock price. The company is authorized to repurchase up to 49.94 million shares out of 557.5 million outstanding shares as of July 14. This buyback represents approximately 10% of its public float of 499.4 million shares, scheduled for the period between July 28, 2025, and July 27, 2026. Shares may be bought back through TSX, Nasdaq, or other approved means. CEO Ben Gagnon stated, "We believe that Bitfarms' shares are currently undervalued as our Bitcoin operations are underappreciated by the market, with limited value placed on our high-performance computing potential." He expressed confidence in Bitfarms' management and growth strategy. Despite these positive developments, Bitfarms stock (ticker BITF) has seen a decline of 55% over the past year as the cryptocurrency sector navigates profitability challenges post the April 2024 Bitcoin halving. The company also recently settled a lengthy takeover dispute with Riot Platforms. The specifics of the repurchase program will depend on multiple factors, including liquidity, market conditions, and regulatory requirements. Gagnon emphasized the significance of their unique energy portfolio in Pennsylvania, forecasting it will support sustainable growth and enhance shareholder value through this buyback while also pursuing enhancement in high-performance computing and artificial intelligence sectors. At publication, Bitfarms shares were trading up 12.5% at $1.27, with a market cap nearing $590 million. Disclaimer: The Block is a standalone media outlet providing news and data as of November 2023, backed by Foresight Ventures, an investor in various crypto companies, including exchange Bitget. The Block operates independently to deliver objective news on the crypto industry.