What's Going On With Bitfarms Stock After Earnings?

Bitfarms Ltd. BITF shares are roughly flat Friday after the stock gained 22% Thursday following the company's second-quarter earnings release.

The Details:

Bitfarms reported quarterly losses of 7 cents per share which beat the analyst consensus estimate by 30%. Quarterly revenue of $41.548 million was down 16% sequentially due to the decrease in block rewards following the Bitcoin BTC/USD halving event that occurred on April 19, 2024. 

Gross mining profit and gross mining margin of $21 million and 51%, respectively, down from $31 million and 64% in the first quarter, respectively.

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Bitfarms averaged 6.7 bitcoin per day in daily production, and its current hashrate of 11.1 EH/s is up from 6.5 EH/s in the same period last year. The company said it remains on track to achieve its guidance of 21 EH/s and 21 w/TH in 2024. 

As of June 30, 2024, the company had total liquidity of $195 million, comprised of $139 million in cash and 905 bitcoins valued at $57 million based on a price of $62,700. As of July 31, 2024, Bitfarms held 1,016 bitcoins.

According to data from Benzinga Pro, Bitfarms shares are trading below the stock’s 50-day moving average of $2.56 and 23.5% of shares are being sold short.

Should I Sell My BITF Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Bitfarms have increased by 45.57% in the past year. An investor who bought shares of Bitfarms at the beginning of the year would take a loss of $0.54 per share if they sold it today. The stock has fallen 6.12% over the past month, meaning an investor who bought shares on July 1 would see a capital loss of $0.23.

Bitfarms shares have an all-time high of $8.87, representing 285.65% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Bitfarms stock currently has an RSI of 47.3, indicating neutral conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

BITF Price Action: According to Benzinga Pro, Bitfarms shares are flat at $2.30 at the time of publication Friday.

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 Image: Roy Buri from Pixabay