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Bitfarms Ltd T.BITF

Alternate Symbol(s):  BITF

Bitfarms Ltd. is a Canada-based global vertically integrated bitcoin mining company. The Company develops, owns, and operates vertically integrated mining farms with in-house management and Company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The Company’s proprietary data analytics system delivers operational performance and uptime. The Company operates through the cryptocurrency mining segment. The Company operates server farms comprised of computers (Miners) designed for the purpose of validating transactions on the Bitcoin (BTC) Blockchain (Mining). The Company also operates Miners about 24 hours a day producing computational power (measured by hashrate) which it sells to Mining Pools under a formula-driven rate commonly known as Full Pay Per Share (FPPS). The Company has 11 farms, which are located in four countries: Canada, the United States, Paraguay, and Argentina.


TSX:BITF - Post by User

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Post by zoevans1on Feb 15, 2022 2:54pm
141 Views
Post# 34431096

Bitfarms is fine for a long-term hold 💎

Bitfarms is fine for a long-term hold 💎
Don't forget that Bitfams is still only about 1/2 way through its ATM offering. Hard to have upward price momentum when the company itself is adding considerable sell-side pressure.
 
Last info was that it was 22% complete ($111 / $500 Million) as of November 12, 2021. Average exercise price was $5.75 to $6.06 / share. They did secure $100 Million of alternative funding a couple of weeks ago that is not convertible to equity, which tells me that they likely suspended the ATM while prices are depressed and they probably did not sell much in December or January.
 
In their latest financial disclosures the management warned of continuing share dilution citing the ongoing ATM and seems to be expecting to run out the offering this year. Best case I would not expect prices to rise significantly above the $5.00-$6.00 until the ATM is complete. In terms of timeline they ran through ~20% in two months, so if they are selling 10% of the issuance per month expect the ATM to continue another 6-7 months, i.e. through Q.2 2022. (Assuming that they continued to sell through the down market -- if not it may last well into the second half of the year.)
 
Bitfarms is fine for a long-term hold, but day trading is pointless until the ATM is finished.
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