Nazia Saeed
- Bitfarms to repurchase 10% of its shares over the next year, with a total buyback of 49.9 million shares
- Company pivots to high-performance computing (HPC) and AI infrastructure, expanding its energy portfolio
- Share buyback reflects CEO confidence and aims to increase value for remaining shareholders
Bitfarms, a leading Bitcoin mining company, has unveiled a share buyback program to repurchase up to 49.9 million shares roughly 10% of its public float over the next 12 months. The initiative, which is set to begin July 28, 2025 and end by July 27, 2026, comes as Bitfarms seeks to boost its share value and reflect confidence in its business model.
The Toronto Stock Exchange (TSX) approved the buyback program, which will also cover repurchases on Nasdaq, where Bitfarms’ stock is listed. The company’s Nasdaq shares closed up 16.8% following the announcement.
Strategic buyback details and market impact
The buyback will proceed under specific guidelines:
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- On the TSX, the daily purchase limit will be 494,918 shares, equaling 25% of the average daily trading volume over the last six months.
- On Nasdaq, the total buyback will be capped at 5% of outstanding shares for the duration of the program.
The company will pay market prices for shares during the repurchase, which will then be canceled to reduce the total number of outstanding shares. This could potentially lead to an increase in the value of remaining shares held by investors, further boosting confidence in the company’s long-term prospects.
Pivot to high-performance computing (HPC) and AI
In a statement following the buyback announcement, CEO Ben Gagnon emphasized the company’s confidence in its future prospects, stating that the move signals Bitfarms’ stock is currently undervalued. He highlighted the company’s ongoing transformation from a Bitcoin miner into a high-performance computing (HPC) and AI infrastructure provider, especially with its growing energy footprint in Pennsylvania.
Our pivot to HPC and AI data centers will serve as a key growth driver, said Gagnon. The shift to these sectors comes as mining companies adjust their business models following the 2024 Bitcoin halving, which squeezed miner profits and made infrastructure such as power and cooling systems more valuable for alternative use cases like AI hosting.
Bitfarms’ financial shift and challenges
Founded in 2017, Bitfarms operates 15 Bitcoin mining data centers across the US, Canada, Argentina, and Paraguay. However, the company has faced challenges due to the impact of the Bitcoin halving on miner revenues. In its Q1 2025 financial report, Bitfarms reported a $36 million net loss, a sharp increase from the $6 million net loss it reported in the same quarter of 2024. Its gross profit margin also dropped from 43% to 63% year-over-year, reflecting the tough operating environment.
Despite these challenges, Bitfarms secured a $300 million credit line from Macquarie to fund its expanding HPC operations, particularly a new facility in Pennsylvania. Additionally, the company sold its mining site in Paraguay to Hive Digital for $85 million, signaling a strategic shift towards more profitable and scalable ventures in the United States.
Looking ahead: Shareholder value and market strategy
Bitfarms’ move to buy back shares, combined with its pivot to HPC and AI infrastructure, highlights its strategy to reposition itself for long-term success in the evolving tech landscape. As the firm redefines its role in the blockchain and computing industries, it will continue focusing on strategic growth areas and shareholder value, while making use of its existing resources to maximize profitability.
