The actions of cryptocurrency and Bitcoin, in particular, had a huge break, one of the reasons being the current price levels for BTC and Ethereum to peaks of all time.
The fact that BTC affects USD 58,000 (and could break it soon), but also because the mining industry of cryptography as a whole matures over time.
Just in case you don’t know, Bitfarms Stock is currently negotiated at $ 7.92 CAD in the TSX-V and US $ 6.31 (OTC market).
I believe that Bitfarms is in a better global position compared to its competitors (Mara, Riot, Hut8, Hive Blockchain, BTBT, SOS, Ebon) in terms of scaling and cost control, and this will be paid in the future with better beneficiary margins as the industry increases.
Presentation of Bitfarms
Bitfarms is proudly Canadian. The company operates and Mines Bitcoins of Canada with its head office in Toronto, at the place of the mining of Alberta (time is ideal for the mining of BTC)
In simple terms, Bitfarms is a Canadian Blockchain infrastructure company providing an essential service: validation and verification of global cryptocurrency transactions (Bitcoin in particular).
In addition, Bitfarms has built and operates industrial installation installations of Bitcoin since 2017.
Bitfarms actions are negotiated in the TSX-V (Canada) and OTCQB (United States) markets. The action is negotiated under TSXV symbols: BitF / OTC: Bfarf.
Bitfarms operations
Let me start by saying that Bitfarms has and operates one of the largest mining operations in North America with 69 MW of integrated capacity in Alberta.
Another thing to note here is that Bitfarms recently increased its 185 pH / s or 24% hatching capacity in 2020 only.
The company operates five Bitcoin extraction installations advanced in Quebec, Canada.
And each mining installation is fueled by low -cost renewable hydroelectricity. They exploit Bitcoin in all their installations and Litecoin for two.
The end -of -year hashrate Bitfarms 2020 was 965 pH / s.
To add, Bitfarms has planned the end of the Hashrate Q1 2021 is 1,205 pH / s. The company plans to extend its BTC mining operations to 3ph / s by the end of 2021.
In addition, the company operated the most bitcoin in the nine months ending on September 30, 2020, with an average cost per bitcoin of $ 5,300.
The current price of the BTC being around 57,000 USD, this gives you a raw mining by BTC at almost 89%.
Bitfarms vs. Competition
The case with Bitfarms is particularly interesting because their value proposal is to be the most profitable cryptographic minor.
Compared to their competition, all Canadian cryptography minors seem to be undervalued at the moment, look at the table below.
Source: Cheshire_Cat de Stocktwits.
Bitfarms Ph is almost up there with a riot and a hut. (Us Bitcoin Mining Crypto Companies)
Another thing is that the estimated bitfarms mining income from January 2021 are 6 m from the riot (4.2 m), Hut (7 m) and Mara (1.7 m).
Looking at the financial (third quarter of nine months), compared to the riot and the 8 mines hut below (February 12 closing of the market):
| Business | Market capitalization | Income | Gross mining |
|---|---|---|---|
| Bitfarms | 375 m | 23.3 m | 38% |
| 8 mines hut | 994 m | 27.7 m | -5% |
| RIOT | 3.3 B | 6.7 m | 38% |
In addition, the fact that Riot is listed on the Nasdaq obviously has a major impact on their market capitalization.
Bitfarms assessment
The assessments are always complex in this industry and generally, companies have a market capitalization to demonstrate commercial potential according to capacity.
The medium pH / MC (current) for the 11 listed companies (in the above graph), is 1.18.
And the average MC is 1.16 B.
Based on these figures alone, the Bitfarms market capitalization must be 2.2 B (PH / MC X Multiple = Middle MC). In this case, an action course based on the current float would be $ 25.6 (32.4 CAD).
This is a very high assessment relating to their competition. The evaluation would bear the Bitfarms PH / MC ratio to 1.18, which is approx. The same as for Hive. Keep in mind that we only look at pH alone, not raw mining.
Taking into account that Bitfarms is not listed on Nasdaq (eliminating Mara, Riot, BTBT, Ncty).
To facilitate the task, the average market capitalization is 620 m for the 7 remaining companies, with an average pH / MC at 1.32.
This would give Bitfarms a market capitalization at 1 B, which would put the share price at $ 11.6 (14.7 CAD). Thus, even compared to the crypto minors not nasdaq, Bitfarms is undervalued.
However, I understand the faults of my evaluation, because it is strictly based on operational capacity, and not “soft values” such as brand, marketing, etc.
All these calculations are based on the data of February 12, because this DD has taken time to compile, because today, all crypto mining actions have increased, but Bitfarms is still undervalued compared to their competition and their mining capacity.
COURSEGULTS OF COURSE OF COMPOINTS
First, the results of the fourth quarter in early March.
Then the company is preparing to establish a sixth mining center
And then there is the potential list of Nyse.
The president recently declared the following in an interview: “In an interview yesterday, the president confirmed in the newspaper to intensify the steps to record the Bitfarms on the New York Stock Exchange.” The Nasdaq would be ideal, “said Morphy.” https://hetimeshub.in/bitfarms-is-sttill-checking-out-in-the-us/4882/
Win new institutional investors (investments up to 60 m (CAD) for American institutional investors since January)
https://finance.yahoo.com/news/bitfarms-announs-closing-cad-40-230000914.html
https://finance.yahoo.com/news/bitfarms-announs-closing-second-cad-220000320.html
Bitfarms risks involved
Like other Crypto mining companies, the course of action is allocated by volatility and the price of the main cryptocurrencies (BTC, ETH, LTC)
Ability to increase production and reach their SET PHS targets for 2021
Attract new institutional investors
Price and supply of electricity, because it is their major production cost
The whole cryptography industry could be overvalued at the moment, which would indicate an upcoming correction
Please share positive and critical opinions on this DD because I want to watch the business from different angles.
Recent updates of Bitfarms
Bitfarms recently announced that they have increased The order previously announced by 3,000 microbt M31S minors + 50% to a total of 4,500 minors.
These 4,500 minors will be delivered according to the calendar and will be in production over the next 30 days.
With the successful installation of these 4,500 minors, the Operational Hashrate Bitfarms will increase 35% of 965 PH / S 1.3 EHS using the existing infrastructure.
In addition, the high efficiency of these minors will improve the overall efficiency of their minors from 12.5% to 49 W / TH, resulting in a direct reduction in Bitcoin raw extraction costs (which costs around 7,000 USD at the moment).
At the level of mining difficulties in force, this results in:
1. Daily production of more than nine (9) bitcoins
2. Daily bitcoin production value greater than US $ 450,000 on the basis of the recent Bitcoin recent more than $ 50,000 US
3. Bitcoin Minog Minog COSS Convement 7,000 US $ per bitcoin
Bitfarms Bitcoin retention pilot program
Since January 1, 2021, almost all of the Bitfarms Bitcoin daily productions have been added to their balance sheet in a Bitcoin retention pilot program.
In just 46 days, this Bitfarms pilot program accumulated more than 250 BTC and counting.
According to the company, during the above period of Bitcoin accumulation, the average daily price of the BTC was about $ 40,800. Compare this to the price of today’s BTC of 57,000 USD and you instantly make millions of profits by simply holding the parts in the safe.
Bitcoin recently exceeding US $ 50,000, Bitfarms is delighted to report the early success of this program.
In addition, with the addition of new ASIC minors, the company intends to continue to add more bitcoin to its assessment at a faster pace and with costs per unit lower.
Bitfarms plans to have around 500 BTC in the program in about 30 days.
Bitfarms
To prepare for future equipment purchases, Bitfarms recently started to build phase II on their site in Cowansville (Alberta).
This will extend the capabilities of the 4 MW site to its complete 16.7 MW capacity and will be able to accommodate up to 4,700 new generation bitcoin miners.
The buildout also includes a new repair laboratory and an operations command center which should be operational in T2 of 2021.
Last words
In simple terms, Bitfarms is an excellent crypto extraction company with low operating costs and efficiency measures.
The company is currently extremely undervalued compared to the Hive Blockchain and Hut 8 of its Canadian peers (which are both worth more than a billion dollars in market capitalization). Currently, the assessment of Bitfarms market capitalization represents around $ 750 million Canadian dollars.
Even if Hive is more in the extraction of Ethereum (almost 80%), Hut 8 is also completely in the operation of Bitcoin, based in Toronto.
You should certainly consider a small exposure to the extracting stocks of cryptocurrencies because growth seems lucrative and giants like Tesla which can be bought in Bitcoin now.
Thank you for reading. Please let me know your thoughts and comments below.
