Should you sell your Bitfarms stock?

Bitfarms (Bitfarms Stock Quote, Chart, News, Analysts, Financials TSX:BITF) reported second-quarter 2025 revenue of $77.8-million, up 87% year over year, but below the $84.3-million consensus, ATB Capital Markets analyst Martin Toner said August 12. He maintained an “Outperform” rating and $5.00 target.

Mining gross profit, excluding depreciation, was $32.4-million, short of ATB’s $46.2-million estimate, for a margin of 41.6% versus 45.9% in Q1 2025, with the decline driven by a higher network hash rate.

Adjusted EBITDA came in at $13.7-million, missing consensus at $29.2-million and ATB’s forecast of $31.2-million. The company maintained its H1 2025 efficiency goal of 19 watts per terahash and ended the quarter with a hash rate of 17.7 EH/s, down from 19.5 EH/s in the prior quarter.

Bitfarms is a Toronto- and New York-based company that develops and operates data centers and energy infrastructure for high-performance computing and Bitcoin mining, with a 1.3 GW pipeline concentrated mainly in the U.S.

“The miss this quarter was driven by BITF announcing that it will discontinue operations at its mining operations in Argentina (where it had 1.1 EH/s during the quarter), expected to be completed by November 11, 2025,” Toner said. “BITF will receive $18mm as proceeds from discontinuing Argentina operations, and has ‘no plans’ for additional miner purchases as all BTC mining growth initiatives have now been halted. The focus will now be on building out HPC/AI infrastructure, with BITF one, purchasing 180 acres of additional land at Panther Creek, two, submitting a master site plan of Panther Creek to Macquarie (as part of the $300mm debt facility) and three, partnering with data centre builder and operator T5 Data Centres for pre-construction design planning.

“We like the shift in focus for the company and commitment to reducing capex for the time being, which we think lessens the strain on the balance sheet while undergoing its HPC/AI transformation.”

The company said the Argentina operations discontinuation is driven by “the previously disclosed halting of the energy supply to the site since May 12, 2025, and future economic uncertainty in the region.”

The company also announced that over $25-million of miners are now being marketed for sale.

Bitfarms reported Q2 2025 revenue of $77.8-million, up 38.5% from the prior quarter but below the $84.3-million consensus. The company produced 718 Bitcoin in the quarter, a 17% year-over-year increase but short of ATB’s 895 Bitcoin estimate, with the shortfall tied to the shutdown of its Argentina operations.

Gross profit was a loss of $5.5-million, reflecting $83.3-million in cost of revenues, including depreciation. Mining gross profit was $32.4-million, for a margin of 41.6%, down from 49.7% in Q2 2024. Direct mining costs were $34.6-million, excluding $37.0-million in depreciation and amortization. With 718 Bitcoin produced, the direct cost to mine averaged $48,200 per Bitcoin, up from $47,800 in Q1 2025.

Bitfarms CEO Ben Gagnon said in the company’s Q2 press release that the company’s North American energy portfolio positions it to be a leader in high-performance computing and AI infrastructure.

“With over 1 GW in our Pennsylvania pipeline, anchored by our flagship Panther Creek campus, which is in close proximity to Amazon and CoreWeave sites, we aim to capture significant market share in what is quickly emerging as a new AI infrastructure hub,” he said. “With additional energy strategically located in data center hotspots in Washington and Quebec, we are building a diversified, unique and scalable North American platform of robust energy and fibre infrastructure that is attracting significant interest from prospective clients. Coupled with strong political support for data center development in these regions, our strategic vision and pivot to the U.S. and to HPC & AI infrastructure positions us as a key player to meet surging demand in the AI industrial revolution coast-to-coast.”

Bitfarms CFO Jeff Lucas said the company has completed several key initiatives in the past four months, including securing Panther Creek financing, committing to transition to U.S. GAAP accounting in Q4 2025, opening a second principal executive office in New York City, and starting a share buyback program.

“We’ve already repurchased 10% of all shares available under the repurchase program, a testament to our strong belief that the market is significantly undervaluing our shares,” he said. “With minimal 2025 capex remaining and strong liquidity comprised of a growing Bitcoin treasury, approximately $85-million in cash, a debt financing in place with Macquarie, and consistent cash flows from our mining operations, we are well-positioned to execute on our HPC/AI infrastructure, share buyback, and U.S. pivot strategies.”

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