Bitfarms Announces Stock Buyback Program, Shares Surge
Shares of Canadian Bitcoin miner Bitfarms climbed more than 25% Tuesday following the company’s announcement of a stock buyback.
Bitfarms is authorized to repurchase up to 49,943,031 common shares, representing approximately 10% of its public float valued at around USD $64 million based on current prices.
“We believe that Bitfarms’ shares are currently undervalued because our Bitcoin business is underappreciated by the market,” said CEO Ben Gagnon. “Furthermore, there is little to no value being associated with our high-performance computing potential,” he added.
A share buyback aims to support the company’s stock price by reducing the available supply on the market.
Context
Bitfarms operates 15 cryptocurrency mining data centers across Canada, the U.S., Argentina and Paraguay. It has been expanding its operations beyond mining into adjacent technology fields.
The company recently acquired Stronghold Digital Mining to further this expansion into the artificial intelligence sector, recognizing synergies between the substantial infrastructure demands of both industries.
Bitcoin mining remains a challenging business environment due to persistent price volatility and mounting operational difficulties.
Source: Press release dated September 28, 2023
