Bitcoin Miner Bitfarms Launches Aggressive Share Repurchase Plan
Bitfarms (BITF), the Toronto-based Bitcoin mining company, saw its stock jump by 8% on July 22 following the announcement of a major share buyback program. The company plans to repurchase up to 10% of its public float, signaling confidence in its valuation and future direction.
The buyback program will enable Bitfarms to repurchase nearly 50 million shares over the next 12 months on both the Nasdaq and Toronto Stock Exchange.
All repurchased shares will be cancelled, reflecting the company’s intent to return value directly to shareholders and tighten available supply in the market.
CEO Cites Market Undervaluation and AI Expansion Potential
CEO Ben Gagnon called the company’s stock “undervalued,” noting that the market has not yet recognized the full scope of Bitfarms’ capabilities.
“Our Bitcoin business is underappreciated, and our high-performance computing (HPC) potential is receiving little to no value,” Gagnon said.
Bitfarms is currently expanding its infrastructure into AI and HPC sectors, leveraging its low-cost energy portfolio in Pennsylvania. The move reflects a broader strategy to diversify income streams beyond Bitcoin mining, especially as crypto markets fluctuate.
Shares Rally Despite Broader Mining Sector Weakness
While most Bitcoin mining stocks declined due to BTC falling below $118,000, Bitfarms stock surged up to 18% intraday before settling at an 8% gain. This sharp divergence highlights investor confidence in the company’s capital allocation strategy.
Bitfarms is choosing to invest in itself at a time when broader market sentiment is mixed — a sign of internal strength and forward-looking management.
Why This Matters for Investors
The buyback sends a strong signal to the market: Bitfarms believes its shares are worth more than what the current price reflects. Additionally, the company’s move into AI-focused high-performance computing aligns with growing investor interest in infrastructure plays tied to artificial intelligence and data centers.
Bitfarms is not just a Bitcoin miner anymore — it is positioning itself as a major player in energy-efficient AI infrastructure.
This development could reshape how the market values crypto mining firms in the coming months.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.