Bitfarms(BITF) soars 6.42% ahead of Q1 earnings report

Bitfarms(BITF) shares surged 6.42% today, marking the sixth consecutive day of gains, with a cumulative increase of 19.83% over the past six days. The stock price reached its highest level since March 2025, with an intraday gain of 9.17%.

The strategy of buying BITF shares after they reached a recent high and holding for 1 week resulted in a significant loss. The 5-year annualized return was -26.4%, underperforming the market by 10.6%. This indicates that this strategy failed to generate any profit over the past 5 years and, in fact, resulted in a substantial loss compared to the market performance.

Bitfarms Ltd. is currently facing a class action lawsuit filed by Pomerantz LLP on May 13, 2025. The lawsuit alleges violations of federal securities laws related to the misclassification of proceeds from digital asset sales and an error in the accounting for warrant redemptions. These issues have led to the need for restatement of financial statements, which has contributed to a decline in the company's stock price.

Despite the legal challenges, Bitfarms is preparing to release its Q1 earnings report on May 14, 2025. Analysts expect a 29.1% year-over-year increase in revenue, which could positively influence investor sentiment and potentially drive the stock price higher. The upcoming earnings report is a critical factor that investors will be closely monitoring, as it could provide insights into the company's financial health and future prospects.