BITF (Formerly BFARF was just uplisted to the Nasdaq on 21 June from the TSX where it is also dual-listed now)
Investor Presentation June 2021
Key points;
- 6,461 miners in operations currently
- Each facility is 100% powered with environmentally-friendly hydro power and secured with long-term power contracts. Bitfarms is currently the only publicly traded pureplay mining company audited by a Big Four audit firm.
- 69MW capacity and building out to 168MW by the end of the year
- 1,200 PH/s in Q1 projected 3,000 PH/s by the end of the year (210% growth)
- Cost to mine is $8,400 (mined 598 coins in Q1)
- Total assets of 164m with Cash on hand of 53m total liabilities 22.1m (basically no debt!)
- Vertically integrated
- Own the electrical company for their locations which allows them to maintain a 24/7 staff to repair and monitor equipment cheaper
- Bitfarms has added 1,114 mined Bitcoin to treasury. This Bitcoin is currently worth over US$41 million based on a Bitcoin price of US$37,000.
Comparision to other miners
2-3x underavlued from MARA and RIOT
Projected Growth
They are powered by 99% renewable energy. As this continues to come up this will only provide further tailwinds to push them up to and past other miners in the space. They are no China-based so no need to worry about all the regulation manipulation and they already control 1% of the global hashrate. Even more now that China is cracking down which will only catapult their earnings over the next few quarters.
Other positive factors
Institutional investors can now buy in. RIOT and MARA had an explosion of buying from large institutions this is likely to start and only help drive the price up. This has already started prior to their uplisting.
https://finance.yahoo.com/news/bitfarms-announces-closing-cad-40-230000914.html
https://finance.yahoo.com/news/bitfarms-announces-closing-second-cad-220000320.html
Russell inclusion- Much like MARA and RIOT as the market cap increases they will likely be added to the Russell 2000 on a future rebalancing.
Crypto finding a bottom- If the bottom was tested at 29-30k recently and hold this should also prove to be one of the lowest points BITF would have on the first two days it was traded. Any increase in crypto price from here would increase profitability and also the value over the over 1k in BTC they hold on their balance sheet.
Risks
Crypto price decline. They mine at an average cost of under $8500 per coin so this is not really an issue at the current valuation but would slow growth.
Offerings- They have a $500m shelf offering approved as of June 11th so this could cause short-term disruption to growth but with minimal debt, it will likely be used to acquire more miners or improvements in energy efficiency.
Based on some paper math I would estimate a modest price target would put them around $14.25 if the price of Bitcoin remained around 33k
No comments:
Post a Comment