Bitfarmsâ Q2â2025 release underscores a shift from a pureâplay mining model to a hybrid HPC/AIâfocused growth strategy, backed by âindustryâleading strategic partnersâ and a ârobust balance sheet.â The combination of higherâmargin AIârelated compute contracts and a healthier capital structure should lift forwardâlooking cashâflow estimates. Assuming the market prices those incremental cashâflows, the stockâs valuation ratiosâespecially EV/EBITDA and P/Eâare likely to expand above the current cryptoâminer peer average (which still trades on thinâmargin, commodityâdriven earnings). In other words, Bitfarms can command a premium to the sectorâs 12âmonth median multiples, at least until the new revenue mix is fully reflected in earnings.
From a trading perspective, the premium is already in play: Bitfarms is trading near the upper end of its 200âday moving average with modest upside volume, suggesting the market has begun to priceâin the AIâgrowth narrative. If the earnings guidance holds and the partnership pipeline materialises, the multiple expansion can be sustained, making a âbuyâonâdipâ around the $0.90â$1.00 range attractive. Conversely, any shortâterm miss on AIârelated bookings or a pullâback in cryptoâminer demand could trigger a rapid multiple compression back toward industry norms, offering a quick exit point. Keep an eye on the next guidance update and on onâbalanceâsheet cashâburn metrics; a widening EV/EBITDA beyond 15Ă will still be justified only if the AIâHPC revenue trajectory stays on its growth curve.