Should You Go For This Small Cap Crypto Mining Stock-BITF.TO

Acrobull Canada Advisory Inc.

January 20			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Bitfarms Ltd.	BITF.TO-TSX	Financial Services		$1.158 Billion	Medium

Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees.

Recent Highlights

Institutional Investors Buying the Stock- in recent weeks and days the stock of the company has been bought by so many institutional investors which shows the overall growth of the company and the sector itself.

We expect high volatility in the stock going forward and customers looking for high risk high reward stock may choose to invest in it.

Third Quarter 2024 Financial Highlights

Total revenue of $45 million, up 8% Q/Q.

Gross mining profit* and gross mining margin* of $17 million and 38%, respectively, down from $21 million and 51% in Q2 2024, respectively.

General and administrative expenses of $28 million, up 123% Q/Q.

Operating loss of $44 million, which included $10 million accelerated depreciation on older miners in connection with the transformative fleet upgrade, compared to an operating loss of $24 million in Q2 2024, which included $46 million accelerated depreciation on older miners.

Net loss of $37 million, or $(0.08) per basic and diluted share which included a $6 million non-cash gain for revaluation of warrant liabilities in connection with 2023 financing activities.

This compares to a net loss of $27 million, or $(0.07) per basic and diluted share in Q2 2024, which included a $1 million non-cash expense for revaluation of warrant liabilities in connection with 2021 and 2023 financing activities. Adjusted EBITDA* of $6 million, or 14% of revenue, down from $12 million, or 28% of revenue, in Q2 2024.

Stock Observation- The company’s stock performance has been good however the stock has gone through some fluctuation in recent weeks, the RSI level for the stock is at 60, however strong volume and traction towards Bitcoin can take the stock high.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$2.45 CAD
Acrobull Recommendation	Buy
Target Price	Target $2.80 CAD
RSI Level	14 Day RSI 60
Total Shares Outstanding	472.55 Million
Shares held by Insiders Risk Factor Stop Loss	19.98% Medium 5%