Keefe Downgrades Bitfarms Amid Liquidity Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 13 2023
0mins
Should l Buy BITF?
Bitfarms Ltd. experienced a significant decline of 5.10% in regular trading, hitting a 20-day low amid broader market weakness with the Nasdaq-100 down 1.23% and the S&P 500 down 0.50%.
The downgrade from Keefe Bruyette to 'Market Perform' with a price target of $3 reflects concerns over Bitfarms' liquidity risks, as analysts believe the company may not secure a leasing agreement until the second half of 2026. Additionally, the company is facing rising leverage and elevated capital expenditure pressures, which contributed to a more than 1% decline in after-hours trading on Monday. Furthermore, Bitfarms has proactively raised capital through a $588 million offering of convertible senior notes and is in the process of selling its 70 MW site in Paraguay for $30 million, expecting to receive $9 million in cash upon closing in Q1 2026.
These developments indicate a challenging environment for Bitfarms, as the downgrade and liquidity concerns may impact investor confidence and the company's ability to navigate its financial obligations effectively.
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Analyst Views on BITF
Wall Street analysts forecast BITF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BITF is 5.67 USD with a low forecast of 4.00 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 1.705
Low
4.00
Averages
5.67
High
7.00
Current: 1.705
Low
4.00
Averages
5.67
High
7.00
About BITF
Bitfarms Ltd. is a Canada-based global Bitcoin and vertically integrated data center company that sells its computational power to one or more mining pools from which it receives payment in Bitcoin. It develops, owns, and operates vertically integrated mining facilities with in-house management and Company-owned electrical engineering, installation service, and multiple onsite technical repair centers. Its proprietary data analytics system delivers operational performance and uptime. The Company operates through the cryptocurrency mining segment. The activities of the Company mainly consist of selling its computational power used for hashing calculations for the purpose of cryptocurrency mining in multiple jurisdictions. Volta, a wholly owned subsidiary of the Company, assists the Company in building and maintaining its data centers. The Company operates Bitcoin data centers in four countries: the United States, Canada, Paraguay, and Argentina.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Redomiciliation Plan: Bitfarms (BITF) is planning to redomicile from Canada to the U.S. and rebrand as Keel Infrastructure, marking a strategic shift from bitcoin mining to AI infrastructure, which is expected to enhance its market competitiveness.
- Stock Exchange Transition: Each outstanding common share of Bitfarms will be exchanged for one share of Keel Infrastructure, with trading expected to commence on Nasdaq and the Toronto Stock Exchange under the ticker KEEL, thereby increasing investor interest.
- Shareholder Meeting Scheduled: The company's board has approved the plan, with a shareholder meeting set for March 20 to seek approval, and the transition is anticipated to be completed around April 1, 2026, demonstrating a clear roadmap for future growth.
- External Advisory Support: To ensure a smooth transition, Bitfarms has engaged several external advisors to assist with the transaction, indicating the company's commitment to professional support during its strategic pivot to mitigate potential risks.
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- Strategic Shares Surge: Strategy shares jumped 14.1% to $122.56 on Friday, signaling a positive market outlook for the company and potentially attracting more investor interest in its future growth prospects.
- Overall Market Trend: The overall rise in U.S. stocks suggests a restoration of investor confidence, which may lead to increased capital inflows into the stock market, thereby promoting economic growth and corporate earnings.
- Market Data Source: This market update is provided by Benzinga APIs, highlighting improved market information transparency that aids investors in making more informed decisions.
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- Rebranding Initiative: Bitfarms has announced its rebranding to Keel Infrastructure and plans to redomicile from Canada to the U.S., aiming to better capitalize on significant opportunities in HPC/AI infrastructure development.
- Strategic Review Context: This restructuring plan follows a comprehensive strategic review conducted over the past 12 months, demonstrating the company's deep insights and forward-looking approach to future market potential.
- Shareholder Approval Requirement: The plan requires approval from shareholders, the stock exchange, and the court, reflecting the company's emphasis on compliance during the restructuring process to ensure legal and regulatory adherence.
- Positive Market Reaction: Following the announcement of the restructuring plan, Bitfarms shares rose nearly 6% in Friday's pre-market trading, despite retail sentiment remaining in the 'bearish' territory, indicating cautious optimism in the market regarding the company's future prospects.
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- New Company Name: Post-redomiciliation, Bitfarms will be renamed Keel Infrastructure, symbolizing its foundational role in high-performance computing and AI infrastructure, reflecting the company's future development direction.
- Debt Repayment: Bitfarms has notified Macquarie Group of its intention to fully repay its $300 million debt facility, a strategic move that will strengthen the company's financial flexibility and support future project financing, ensuring efficient resource allocation.
- Liquidity Position: As of February 5, 2026, Bitfarms holds $698 million in net liquidity, primarily consisting of unrestricted cash and some bitcoin, which enables the company to smoothly complete the debt repayment while continuing to advance various development projects.
See More
Keefe Downgrades Bitfarms to Market Perform with $3 Price Target
- Rating Downgrade: Keefe Bruyette downgraded Bitfarms from ‘Outperform’ to ‘Market Perform’ while raising the price target to $3, reflecting concerns over the company's liquidity risks.
- Liquidity Risks: Analysts noted that Bitfarms is unlikely to secure a leasing agreement until the second half of 2026, coupled with rising leverage and elevated capex pressures, leading to a more than 1% decline in after-hours trading on Monday.
- Capital Raises: In October, Bitfarms closed a $588 million offering of 1.375% convertible senior notes due 2031, with interest payable semi-annually starting July 15, 2026, indicating proactive financing efforts by the company.
- LatAm Exit Deal: Bitfarms entered into a $30 million share purchase agreement to sell its 70 MW site in Paraguay to Sympatheia Power Fund, expecting to receive $9 million in cash upon closing in Q1 2026, with potential additional payments based on milestones.
See More
Bitfarms to Redomicile in U.S. and Rebrand as Keel Infrastructure
- Redomiciliation Plan: Bitfarms (BITF) is planning to redomicile from Canada to the U.S. and rebrand as Keel Infrastructure, marking a strategic shift from bitcoin mining to AI infrastructure, which is expected to enhance its market competitiveness.
- Stock Exchange Transition: Each outstanding common share of Bitfarms will be exchanged for one share of Keel Infrastructure, with trading expected to commence on Nasdaq and the Toronto Stock Exchange under the ticker KEEL, thereby increasing investor interest.
- Shareholder Meeting Scheduled: The company's board has approved the plan, with a shareholder meeting set for March 20 to seek approval, and the transition is anticipated to be completed around April 1, 2026, demonstrating a clear roadmap for future growth.
- External Advisory Support: To ensure a smooth transition, Bitfarms has engaged several external advisors to assist with the transaction, indicating the company's commitment to professional support during its strategic pivot to mitigate potential risks.
See More
Hut 8 Mining Stock Rises on Bitcoin Rebound
- Bitcoin Rebound: Bitcoin's price rebounded by 7% to the $68,000 level after a sharp decline, directly driving Hut 8 Mining's stock rise, indicating a restoration of market confidence in cryptocurrencies.
- Stock Performance: Hut 8 Mining's shares surged 8.86% to $48.42 on Friday, reflecting investor optimism regarding the crypto market recovery and demonstrating the company's strong performance among its peers.
- Market Dynamics: Despite a severe downturn earlier this week that led to double-digit losses for many crypto-related stocks, Hut 8 successfully capitalized on the positive sentiment surrounding Friday's market rebound, showcasing its resilience in a volatile environment.
- Industry Comparison: Hut 8 Mining's stock has increased by 131.99% over the past year, significantly outperforming the average peer performance of just 6.65%, highlighting its dominant position and the substantial gap established with competitors.
See More
U.S. Stocks Rise as Dow Jones Gains Over 700 Points
- Dow Jones Performance: The Dow Jones index rose over 700 points on Friday, indicating a strong market rebound that reflects investor optimism about economic recovery, which could further drive consumer spending and investment.
- Strategic Shares Surge: Strategy shares jumped 14.1% to $122.56 on Friday, signaling a positive market outlook for the company and potentially attracting more investor interest in its future growth prospects.
- Overall Market Trend: The overall rise in U.S. stocks suggests a restoration of investor confidence, which may lead to increased capital inflows into the stock market, thereby promoting economic growth and corporate earnings.
- Market Data Source: This market update is provided by Benzinga APIs, highlighting improved market information transparency that aids investors in making more informed decisions.
See More
Bitfarms Rebrands to Keel Infrastructure and Moves to U.S.
- Rebranding Initiative: Bitfarms has announced its rebranding to Keel Infrastructure and plans to redomicile from Canada to the U.S., aiming to better capitalize on significant opportunities in HPC/AI infrastructure development.
- Strategic Review Context: This restructuring plan follows a comprehensive strategic review conducted over the past 12 months, demonstrating the company's deep insights and forward-looking approach to future market potential.
- Shareholder Approval Requirement: The plan requires approval from shareholders, the stock exchange, and the court, reflecting the company's emphasis on compliance during the restructuring process to ensure legal and regulatory adherence.
- Positive Market Reaction: Following the announcement of the restructuring plan, Bitfarms shares rose nearly 6% in Friday's pre-market trading, despite retail sentiment remaining in the 'bearish' territory, indicating cautious optimism in the market regarding the company's future prospects.
See More
Bitfarms Announces US Redomiciliation Plan to Enhance Shareholder Value
- Strategic Restructuring: Bitfarms' Board has approved the redomiciliation from Canada to the U.S., aimed at enhancing long-term shareholder value through improved capital access and simplified narratives for investors, with completion anticipated by April 1, 2026.
- New Company Name: Post-redomiciliation, Bitfarms will be renamed Keel Infrastructure, symbolizing its foundational role in high-performance computing and AI infrastructure, reflecting the company's future development direction.
- Debt Repayment: Bitfarms has notified Macquarie Group of its intention to fully repay its $300 million debt facility, a strategic move that will strengthen the company's financial flexibility and support future project financing, ensuring efficient resource allocation.
- Liquidity Position: As of February 5, 2026, Bitfarms holds $698 million in net liquidity, primarily consisting of unrestricted cash and some bitcoin, which enables the company to smoothly complete the debt repayment while continuing to advance various development projects.
See More
Keefe Downgrades Bitfarms to Market Perform with $3 Price Target
- Rating Downgrade: Keefe Bruyette downgraded Bitfarms from ‘Outperform’ to ‘Market Perform’ while raising the price target to $3, reflecting concerns over the company's liquidity risks.
- Liquidity Risks: Analysts noted that Bitfarms is unlikely to secure a leasing agreement until the second half of 2026, coupled with rising leverage and elevated capex pressures, leading to a more than 1% decline in after-hours trading on Monday.
- Capital Raises: In October, Bitfarms closed a $588 million offering of 1.375% convertible senior notes due 2031, with interest payable semi-annually starting July 15, 2026, indicating proactive financing efforts by the company.
- LatAm Exit Deal: Bitfarms entered into a $30 million share purchase agreement to sell its 70 MW site in Paraguay to Sympatheia Power Fund, expecting to receive $9 million in cash upon closing in Q1 2026, with potential additional payments based on milestones.
See More
