Bitfarms Ltd.

Based on a comprehensive review, BITF carries exceptionally high risk and is not recommended for purchase at this time.

The technical picture is severely negative, with the stock down approximately 73% from its high and showing extreme volatility. Fundamentally, the company is deeply unprofitable, burning cash despite a low debt level, which indicates a fundamental breakdown in its business model. Valuation metrics are uninformative due to negative earnings, and the extreme beta of 4.4 means the stock is highly speculative and prone to drastic swings.

For most investors, the combination of accelerating losses, cash burn, and extreme price volatility presents an unacceptable risk profile. Investment should be considered only by those with a very high risk tolerance and a strong conviction in a speculative turnaround, understanding that significant capital loss is a substantial possibility. This analysis is for reference only and not investment advice.

RockFlow Model Forecast: Three Scenarios for 2026

Based on a comprehensive analysis, the 12-month outlook for BITF is highly speculative and carries significant downside risk.

Key positive catalysts are scarce but would require a dramatic, sustained surge in cryptocurrency prices to restore mining profitability and fundamentally improve the company's cash burn situation. The primary risk is the core fundamental weakness: the persistently unprofitable business model and ongoing cash burn threaten its operational viability, especially if crypto markets remain depressed or financing options dry up. Given the absence of analyst targets, a prudent target range is indeterminable; the stock's future is entirely contingent on a high-risk bet on a crypto market resurgence, with the potential for the share price to fall substantially if current negative trends continue.

Wall Street Consensus

Most Wall Street analysts are optimistic about Bitfarms Ltd.'s 12-month outlook, with consensus target around $2.08, indicating expected upside potential.

Overall, BITF has investment potential but also faces challenges. Here are key factors to weigh before investing.

BITF has demonstrated extremely volatile and substantially negative performance over the past year.

The stock has experienced severe declines of approximately -29% over one month and -34% over three months, significantly underperforming the broader market by a similar margin of nearly -35%. This dramatic short-term weakness, coupled with an exceptionally high beta of 4.4, highlights its extreme volatility and susceptibility to sharp downturns.

While the current price of $2.08 sits well above its 52-week low, it represents a drawdown of approximately -73% from its 52-week high, indicating the stock remains in a deeply oversold technical position despite the considerable distance from its peak.

Revenue & Profitability: BITF faces significant challenges with negative gross profits in both Q2 and Q3 2025, indicating its cost of revenue exceeds its sales. The net profit margin worsened substantially to -116.6% in Q3 from -37.1% in Q2, demonstrating accelerating losses and severe unprofitability. This trend highlights a fundamental inability to generate earnings from its core operations.

Financial Health: The company maintains a low debt ratio of approximately 9.2%, suggesting minimal leverage and a strong balance sheet from a solvency perspective. However, cash flow metrics are alarming, with a negative cash flow to debt ratio and negative operating cash flow per share, indicating the company is burning cash to fund operations despite its low debt levels.

Operational Efficiency: BITF shows poor operational returns, with a negative return on equity of -13.2% and a very low asset turnover of 0.086, signaling inefficient use of its asset base to generate revenue. The negative interest coverage ratio further confirms that operating losses are insufficient to cover interest expenses, reflecting deeply inefficient operational performance overall.

Valuation Level: BITF's negative trailing and forward P/E ratios indicate the company is currently unprofitable on a GAAP earnings basis, making a traditional over/undervalued assessment based on earnings meaningless. The negative EV/EBITDA further confirms that the company’s core operational profitability is also deficient. Consequently, the stock cannot be considered fairly valued by conventional earnings-based metrics, as its price reflects market expectations for future performance rather than current financial results.

Peer Comparison: A direct peer comparison is not possible without industry average data. However, the negative valuation multiples (P/E, EV/EBITDA) are atypical for a stable, mature industry and suggest BITF is in a distinct growth or turnaround phase. The valuation is likely being driven by speculative factors or asset-based metrics like the Price-to-Book ratio, which, at 2.57, indicates the market is pricing the equity at a significant premium to its accounting net asset value.

BITF presents exceptionally high volatility risk, primarily evidenced by its Beta of 4.401, indicating that the stock is approximately four times more volatile than the broader market. This extreme sensitivity is further confirmed by a severe one-year maximum drawdown of -73.65%, underscoring its potential for significant capital erosion during market downturns or sector-specific headwinds.

Regarding other risks, the absence of reported short interest is a neutral factor, neither mitigating nor amplifying existing concerns. However, given the stock's speculative nature and its high volatility, investors should remain vigilant about liquidity risks and broader cryptocurrency market sentiment, which remain the predominant catalysts for price movement.