• In the past week, Bitcoin’s price has experienced a strong rally, lifting sentiment and trading volume across U.S. crypto-related equities, including Bitfarms.

• This sector-wide momentum highlights the close relationship between Bitcoin’s market moves and the operating leverage faced by publicly traded mining companies.

• We’ll examine how Bitcoin’s recent surge could impact Bitfarms’ ongoing transformation efforts and future earnings outlook.

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To be a Bitfarms shareholder, you need to believe in the direct link between Bitcoin’s price performance and the company’s fortunes as it pivots toward high-performance computing (HPC) and AI data centers. Recent double-digit gains in Bitfarms’ share price, coinciding with Bitcoin’s rally past US$116,000, reinforce this connection. However, none of the news meaningfully resolve the main short-term risk: regulatory uncertainty over allowing its Quebec mining assets to convert to HPC use remains Bitfarms’ biggest hurdle.

Of the latest company announcements, Bitfarms’ new partnership with T5 Data Centers at its Panther Creek campus stands out. This aims to strengthen its HPC and AI infrastructure ambitions, which is relevant given the sector-wide excitement and underpins Bitfarms’ core growth catalyst, the move away from pure crypto mining into contracted data center revenue streams. Contrast all this optimism with the fact that investors should also be aware of outstanding regulatory risks in Quebec that, if unresolved, could…

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Bitfarms’ outlook points to $504.8 million in revenue and $58.8 million in earnings by 2028. This assumes annual revenue growth of 27.1% and a $145 million earnings increase from the current earnings of -$86.2 million.

Uncover how Bitfarms’ forecasts yield a CA$4.51 fair value, a 7% upside to its current price.

Ten members of the Simply Wall St Community valued Bitfarms between US$2.56 and US$25.68 per share, a wide spread of expectations. While future revenue streams from HPC and AI ambitions are exciting, the company’s ability to secure regulatory approval in Quebec could impact outcomes more than any single Bitcoin price rally.

Explore 10 other fair value estimates on Bitfarms – why the stock might be worth 39% less than the current price!

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