Bitfarms Stock Reassessed Amid Strong Performance and Ongoing Losses

Bitfarms (TSX:BITF) has seen a 105.84% 1 year total shareholder return and an 11.20% year to date share price return, but ongoing losses of $70.213m. The stock is valued at CA$3.17, with the most followed narrative placing fair value at CA$6.99. However, the valuation is based on aggressive revenue expansion and a rich future earnings multiple, which depends on regulatory approvals and access to large project financing. The current P/S ratio of 5x is above the Canadian Software industry average of 3.3x and the peer average of 2.5x, indicating valuation risk if expectations slip.