tl;dr
Canadian Bitcoin miner Bitfarms announced a stock buyback program, causing its stock to rise nearly 14% to $1.28 on Nasdaq. The company is authorized to repurchase up to 49.9 million shares, about 10% of its public float, representing roughly $64 million. CEO Ben Gagnon stated the shares are underva...
Canadian Bitcoin miner Bitfarms has announced a stock buyback program, causing its stock price to surge nearly 14% as of this writing. The company, listed on both the Toronto Stock Exchange and Nasdaq, was trading at $1.28 on the American index (NASDAQ: BITF) following the announcement.
Bitfarms is authorized to repurchase up to 49,943,031 of its common shares from the total 557,548,857 shares outstanding. This buyback represents about $64 million at the current price and accounts for up to 10% of Bitfarms' public float of 499,430,313 shares. CEO Ben Gagnon explained that the current market undervalues Bitfarms’ shares, especially regarding its high-performance computing potential beyond Bitcoin mining.
A share buyback typically aims to increase a company’s stock price by reducing the number of shares available in the market. Bitfarms recently expanded its reach by acquiring Stronghold Digital Mining in March, marking a strategic move into the fast-growing artificial intelligence sector.
Bitcoin mining and AI share common operational demands, particularly extensive energy consumption and data center infrastructure. This synergy allows miners like Bitfarms to leverage their existing facilities to meet AI industry needs effectively. However, Bitcoin mining remains challenging due to the cryptocurrency’s price volatility and rising mining difficulty, which can strain miners’ profitability.
Bitfarms stands as a major player in the mining industry, operating 15 data centers across Canada, the U.S., Argentina, and Paraguay. This geographic diversity supports the company’s ability to navigate the complexities of both Bitcoin mining and emergent AI-related opportunities.