Bitfarms Ltd., a Toronto-based cryptocurrency mining company, has announced a significant share buyback program, authorizing the repurchase of up to 49.94 million of its common shares. This represents approximately 10% of its public float, which stood at 499.4 million common shares as of July 14, or about 8.96% of its outstanding shares. The buyback program is set to run from July 28, 2025, through July 27, 2026. The Toronto Stock Exchange (TSX) has already accepted the company's notice to initiate a normal course issuer bid program.
The announcement triggered a positive market reaction, with Bitfarms' stock price surging by nearly 14% to $1.28 on the Nasdaq following the announcement. In pre-market trading, the stock was already up 7.07% at $1.2100. The company's market capitalization is now close to $729 million.
Bitfarms' CEO, Ben Gagnon, stated that the buyback program reflects the company's belief that its shares are currently undervalued. He emphasized that the market is underappreciating Bitfarms' Bitcoin business and assigning little to no value to its high-performance computing (HPC) potential. Gagnon believes the company's unique energy portfolio in Pennsylvania will drive long-term, sustainable growth. The buyback program demonstrates confidence in Bitfarms' business, management team, and data center growth strategy.
The company can acquire shares on the Nasdaq and the Toronto Stock Exchange, or through any other method allowed by those markets or by law. Daily purchases on the TSX are limited to 494,918 shares, unless using the block purchase exception. On the Nasdaq, total buybacks during the program cannot exceed 5% of the total shares at the start of the program. All repurchased shares will be cancelled. Bitfarms will pay the market price at the time of purchase, or another price allowed by the exchanges.
Bitfarms has also established an automatic repurchase arrangement with its broker to allow share buybacks during pre-set blackout periods, based on instructions given outside of those periods.
This buyback program aligns with a growing trend among crypto firms to prioritize capital return mechanisms, signaling a maturing industry. By reducing share counts, the company may also mitigate dilution risks, a common concern in publicly traded cryptocurrency firms. The move is a strategic step to reduce share supply and enhance shareholder value amid a volatile cryptocurrency market.
The buyback announcement comes after Bitfarms spent months entangled in a takeover attempt by Riot Platforms, which concluded in September. Over the past year, Bitfarms' stock has fallen by about 55% as miners navigate profitability challenges following the Bitcoin halving in April and adjust to a shift toward high-performance computing and AI. Bitfarms' expansion into AI and high-performance computing signals how the crypto mining sector is diversifying. The company's recent acquisition of Stronghold Digital Mining in March was a key component of its push into artificial intelligence (AI), leveraging its existing infrastructure to support energy-intensive AI operations. By integrating AI capabilities, Bitfarms aims to diversify revenue streams while capitalizing on its established footprint in North America, South America, and Europe. The company operates 15 data centers across Canada, the U.S., Argentina, and Paraguay.
