- H.C. Wainwright analyst sees upside in Bitfarms to $2.0 a share.
- He explained his constructive view in a research note on Friday.
- Bitfarms stock has already nearly tripled since the start of 2023.
Shares of Bitfarms Ltd have already nearly tripled since the start of the year but an H.C. Wainwright analyst is convinced that rally is far from over just yet.
Bitfarms stock could climb to $2.0
On Friday, Kevin Dede reiterated his “buy” rating on the bitcoin miner and said its shares could climb to $2.0 – up another 80% from here.
The bullish call on Bitfarms stock arrives only hours after the company expanded operations in Argentina that increased its fleet hash to 5 EH/s.
Estimates Dede has for 2023 are based on a hash rate of about 5.7 EH/s – a level he’s confident the miner will hit in its September quarter.
This fleet expansion also came without further shareholder dilution – an added prize not universally shared across the spectrum of publicly traded bitcoin miners.
Bitfarms Ltd is generating cash
The H.C. Wainwright analyst remains constructive on Bitfarms Ltd also because it did not slip into negative EBITDA even in the fourth quarter when thing went haywire for the crypto space at large.
Other reasons cited for the constructive view on Bitfarms stock include its gross mining margin that declined sharply (year-over-year) in 2022 but still stood at a healthy 33% nonetheless. Dede said in his research note:
We understand potential upside in Argentina. With greater financial flexibility via stronger balance sheet, Bitfarms has options to consider additional business development opportunities.
Expansion in Quebec, Paraguay, and Washington State will help the share price as well, he concluded.
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Bitfarms, a publicly traded, blockchain-based company, is having a stellar year thus far in 2021. The company’s stock has surged over the past several months, leading one analyst to believe that the company still has another 80% upside from here.
Despite the fact that the stock has risen dramatically since its debut in February, analyst David Smillie believes that there is still significant upside for investors, predicting that the stock could see another 80% increase in the near future.
Smillie commented on the bullish news, saying, “We think that Bitfarms’ potential is only beginning to be realized. We believe that blockchain technology could revolutionize the world, and Bitfarms is positioned to capitalize on this revolution. We remain optimistic about the company’s future, based on the strength of their leadership and their dedication to innovation.”
Smillie isn’t the only one who believes that Bitfarms has the potential to continue to perform well. Other analysts have also commented on the promising outlook for the company, pointing to their strong relationships with other blockchain-based companies, as well as their strong distribution network and low cost structure.
These positive estimates for the future of Bitfarms have investors excited about the future of the company and its stock. There is a lot of upside potential for the company as well, with the potential to capitalize on the what many believe is the potential of blockchain technology.
If the projections of David Smillie prove to be accurate, investors could enjoy significant gains in the near future. By staying at the forefront of the blockchain industry, Bitfarms looks set to deliver strong returns for investors in 2021 and beyond.