Bitfarms Ltd.

Bitfarms Ltd. (NASDAQ: BITF) engages in the business of mining cryptocurrency. The firm is also involved in the ownership and operation of server farms comprised of computers designed for the purpose of validating transactions on the Bitcoin blockchain.

Recent Business and Financial Updates:

• March 2024 Operating Highlights: As of March 31, 2024, BITF reported an online hash rate of 6.5 EH/s, marking a notable 35% increase year-over-year and remaining consistent with the previous month. However, the average online hash rate for the month stood at 5.7 EH/s, reflecting a 6.6% decline from the previous month. Despite this, the average Bitcoin earned per hash rate remained relatively stable, with 50 BTC earned per average EH/s, showcasing a modest 2.0% increase from the previous month. In terms of actual Bitcoin earnings, BITF earned 286 BTC during March 2024, representing a 5% decrease from the previous month and a substantial 33% decrease year-over-year. On average, BITF earned approximately 9.2 BTC daily, equivalent to approximately USD 647,700 per day based on a Bitcoin price of USD 70,400 as of March 31, 2024. Additionally, BITF received 1,656 Bitmain T21 miners, with the majority of them already online.
• Operational Developments in Paraguay and Financial Update: In Paraguay, notable progress was made at the Paso Pe site, with the installation of an 80 MW main transformer and the receipt of 3,905 Bitmain T21 miners, along with 1,920 Bitmain M53S+ Hydro Miners awaiting installation upon the receipt of Hydro Containers in mid-April. Moreover, at the Yguazu site in Paraguay, purchase agreements were successfully signed for all long lead-time equipment, including large transformers, cabling, and related interconnects. Financially, BITF executed its regular treasury management process by selling 284 out of the 286 BTC earned during the month, yielding total proceeds of USD 19.2 million. As of March 31, 2024, BITF's Bitcoin holdings in treasury increased to 806, valued at approximately USD 56.7 million based on a Bitcoin price of USD 70,400. Additionally, BITF held Synthetic HODL™ of 85 long-dated BTC call options at the end of March 2024. The company's cash reserves stood at USD 66 million, contributing to a total liquidity of USD 123 million.
• Upcoming Conferences and Events and Previous Operating Highlights: BITF Blockchain outlined its participation in various upcoming conferences and events, including the DigitalABC's First Annual Canadian Crypto Asset and Blockchain Policy Conference, the Bitcoin Policy Summit in Washington DC, the AIM Summit in London, and several others scheduled for May. Reflecting on the previous operating highlights, BITF reported a 7% increase in hash rate to 6.5 EH/s as of December 31, 2023, with an additional 2,300 miners installed compared to the end of Q3 2023. Notably, the company initiated the Synthetic HODL™ strategy and eliminated debt as of February 29, 2024, demonstrating strategic financial planning and management. 

Technical Observation (on the Daily chart):

The BITF stock has experienced a breakdown of a significant trendline support level, which it later retested and expectations of further decline. This could potentially indicate a prolonged period of consolidation before any significant upward trend occurs. The 14-day Relative Strength Index (RSI), a momentum indicator, currently stands near 39.12 levels, indicating a negative outlook. Moreover, the stock's price being below both its 21-day and 50-day Simple Moving Averages (SMAs) suggests that this level may act as temporary resistance soon. To forecast future price movements, it is essential to keep a close eye on these factors and their potential influence on the stock's performance.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is April 18, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.