Bitfarms stock spikes after announcing 50 million share buyback, CEO says its Bitcoin business is ‘underappreciated’

Nasdaq-listed Bitcoin mining company Bitfarms announced Tuesday morning the commencement of a corporate share buyback program, sending shares higher by nearly 18%.The company is authorized to purchase up to 49.94 million of its common shares (out of the 557.5 million) common shares outstanding as of July 14), representing up to 10% of the company’s public float of 499.4 million common shares, during the period between July 28, 2025, and on July 27, 2026.Bitfarms may purchase shares, from time to time, through the facilities of the TSX and/or the Nasdaq, or by such other means as may be permitted by the TSX and/or Nasdaq or under applicable law."We believe that Bitfarms' shares are currently undervalued because our Bitcoin business is underappreciated by the market, with little to no value being associated with our HPC potential," Bitfarms CEO Ben Gagnon said in a press release. "This Program demonstrates our confidence in Bitfarms’ business, our management team, and most importantly our high-performance computing data center growth strategy."Bitfarms' strugglesBitfarms stock (ticker BITF) is down 55% over the past year as crypto miners continue to recover profitability from the fourth Bitcoin halving in April 2024, along with an industry shift towards artificial intelligence and high-performance compute. The firm was locked up in a monthslong takeover saga with Riot Platforms that settled in September. The timing, price, and volume of its repurchases will depend on a variety of factors including corporate liquidity requirements and priorities, as well as general market conditions, the share price, regulatory requirements and limitations."We strongly believe our unique and highly desirable energy portfolio in Pennsylvania will drive long-term, sustainable growth that is financeable and enables management to leverage its balance sheet strength to drive shareholder value with this buyback program while simultaneously pursuing growth opportunities in HPC/AI to best capitalize on our substantial US energy pipeline," Gagnon said.Bitfarms shares traded higher by 12.5% to $1.27 at publication time, according to The Block's BITF price data. The firm has a market cap near $590 million.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.