Bitfarms (TSX:BITF) Valuation in Focus After Panther Creek HPC Expansion and New Growth Strategies

Bitfarms (TSX:BITF) is making waves with news of a new high-performance computing campus at Panther Creek and a push beyond its core Bitcoin mining business. Investors are watching closely as confidence in its growth builds.

See our latest analysis for Bitfarms.

Bitfarms’ focus on high-performance computing and steady expansion has translated into serious share price momentum over the past year, with a 1-month share price return of 19.3% and a staggering 147.8% year-to-date. Over the longer haul, shareholders have enjoyed a 92.9% total return in the past year, and an impressive 492.8% total return over three years. This is clear evidence that market confidence is building amid growth in both mining and AI infrastructure initiatives.

If this mix of tech-driven growth and surging returns has you curious, now’s a great moment to branch out and discover See the full list for free.

But with shares already surging and analyst targets moving higher, the big question remains: Is Bitfarms still trading at a discount, or have markets already factored in all of its future growth potential?

Most Popular Narrative: 18% Undervalued

Bitfarms closed at CA$5.75, while the most popular narrative sets fair value at CA$7.01. This signals optimism beyond recent price gains and suggests further upside could be possible if the narrative’s assumptions materialize.

Strategic conversion of renewable-powered mining sites (particularly in Quebec and Washington) into high-performance computing (HPC) and AI data centers aligns with the global trend toward green energy in tech infrastructure. This potentially grants access to ESG-driven capital and regulatory support, while unlocking new high-margin revenue streams.

Read the complete narrative.

How does a company leap from past losses to bold future returns? There is a significant bet here on technology, margin shifts, and a transformation narrative that is not fully priced in. See which assumptions drive this compelling valuation call; the critical jumps in financials are in the details.

Result: Fair Value of $7.01 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory delays in converting mining sites and challenges securing financing could slow Bitfarms’ transition, which may impact expected growth and diversification.

Find out about the key risks to this Bitfarms narrative.

Another View: What Do Multiples Say?

Looking from a different angle, Bitfarms trades at a price-to-sales ratio of 9.2x, which is much higher than the Canadian Software industry average of 4.8x and peer average of 5.3x. Even more, the fair ratio is just 2.2x, suggesting the stock may be fully valued or even expensive on this basis. That is a significant gap. Are investors paying up for future promise, or could this stretch signal risk if things do not go as planned?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Bitfarms Narrative

Keep in mind, if your interpretation differs or you would rather dive into the numbers firsthand, you can put together your own view in just a few minutes. Do it your way

A great starting point for your Bitfarms research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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