Analyst JonesResearch reiterates Buy on Bitfarms with 57% upside

Bitfarms’ second-quarter came in below estimates, but that’s not stopping JonesReseach from targeting a $2 price target per share, up 57% from its pre-market value of $1.28. The equity investment firm re-iterated a Buy rating for the Bitcoin miner-turned-AI/HPC infrastructure Wednesday following the company’s quarterly presentation.

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Estimate misses were tied to the shutdown of mining operations in Argentina and higher infrastructure costs at Panther Creek and Scrubgrass, with revenue coming in at $77.8 million versus the note’s $80.5 million estimate.

JonesResearch further noted Bitfarm’s share buyback program and the 2026 U.S. redomicile plan as other catalysts for the company.

EBITDA estimates

Lower bitcoin mining revenue ($71.3 million) was partly offset by hosting and energy sales. Gross margin was 40.5% versus a 53.2% forecast, reflecting costs attached to the Pennsylvania assets. Cash SG&A was $17.8 million. The note’s EBITDA definition came to $13.7 million versus a $22.8 million estimate. Operating loss was $26.9 million, reflecting lower EBITDA with some offset from softer D&A and stock comp.

“We now expect the mining operations to hold steady at 17.7 EH/s for the foreseeable future, generating positive operating cash flow above $0.040/TH hashprice and providing Bitfarms a solid 2.5-year runway before the next halving to execute on AI/HPC initiatives,” JonesResearch said in the note.

Bitfarms’ mining woes in Argentina were previously disclosed, wherein the site’s power was cut in May following power uncertainty in the region. The company expects to cease operations in the region in November.

For Panther Creek, JonesResearch expects a tenant announcement in Q2 2026 at the earliest, following development by T5 data center providers. The note projects “equity value of $375–$600MM or $0.68–$1.09 per share.”

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