The Bitcoin mining company Bitfarms announced the commencement of a share buyback program approved by the Toronto Stock Exchange.
Announcement of Share Buyback Program
Bitfarms announced a share buyback program that allows for the repurchase of up to 49.9 million shares, which represents 10% of the company’s public float. The program was approved by the Toronto Stock Exchange and includes repurchases on both TSX and Nasdaq. Following the announcement, Bitfarms' shares on Nasdaq saw a 16.8% increase.
Financial Results and Company's Strategy
On the TSX, the daily purchase limit is capped at 494,918 shares, or 25% of the average daily trading volume over the past six months. On the Nasdaq, total repurchases cannot exceed 5% of outstanding shares during the program period. The buyback will begin on July 28, 2025, and end on July 27, 2026. All shares repurchased will be canceled, reducing the total number of outstanding shares and potentially increasing the value of shares still held. CEO Ben Gagnon stated that this move reflects confidence in Bitfarms’ business and signals that its stock is undervalued.
Shift to HPC and AI
Bitfarms is shifting its focus from Bitcoin mining to power AI applications and is trying to hedge against potential trade wars by expanding in the USA. This pivot has gained popularity among mining companies that already possess the necessary hardware and cooling systems for HPC. In Q1 2025, Bitfarms reported a $36 million net loss compared to a $6 million net loss in Q1 2024. The share buyback program coincides with the company's efforts to expand its HPC facilities in Pennsylvania and roll out new AI services.
Thus, the share buyback program and Bitfarms’ pivot to HPC and AI underscore the strategic rethinking of the company's business model in a changing market.
