Bitcoin News Today: Bitfarms $64M Share Buyback Spurs 14 Stock Jump on AI Strategy Shift

Bitcoin mining company Bitfarms Ltd. (TSX: BITF, NASDAQ: BITF) has announced a $64 million share buyback program, signaling its belief that the stock remains undervalued despite broader challenges in the cryptocurrency sector. The Toronto-based firm, operating 15 Bitcoin mining data centers across Canada, the U.S., Argentina, and Paraguay, plans to repurchase up to 49,943,031 common shares, representing approximately 10% of its public float of 499,430,313 shares. The program, approved by the Toronto Stock Exchange and Nasdaq, will run through July 27, 2026, with daily repurchase limits set at 25% of the average trading volume over the past six months [1].

CEO Ben Gagnon cited limited market recognition of Bitfarms’ high-performance computing (HPC) infrastructure as a key driver behind the buyback. The company has shifted its strategy from pure Bitcoin mining to AI infrastructure hosting, leveraging existing data centers to diversify revenue streams. This aligns with its March 2025 acquisition of Stronghold Digital Mining, a move Gagnon described as a “stepping stone into AI” [1]. By repurposing energy-efficient facilities, Bitfarms aims to position itself in the growing demand for computational power in AI applications, mitigating risks tied to Bitcoin’s price volatility.

The buyback follows a 14% surge in Bitfarms’ stock price to $1.28 per share on Nasdaq following the announcement [1]. However, the stock had previously declined 55% over the past year amid profitability challenges linked to the April 2024 Bitcoin halving event. Analysts suggest that share repurchases often reflect management’s confidence in a company’s intrinsic value, potentially stabilizing stock prices during uncertain market conditions [2].

Bitfarms’ capital allocation strategy extends beyond the buyback. In March, the firm secured a $300 million credit line from Macquarie Group to expand HPC facilities in Pennsylvania, while separately selling its Paraguay mining site to Hive Digital for $85 million [1]. These moves underscore a broader industry trend of Bitcoin miners pivoting toward AI infrastructure to diversify revenue. For instance, rival TeraWulf announced a $200 million share buyback program in October 2024, reflecting similar confidence in strategic diversification [1].

The company’s dual focus on Bitcoin mining and HPC positions it to capitalize on both digital asset markets and AI growth. However, success hinges on execution: repurposing underutilized data centers for AI clients and maintaining profitability amid rising mining difficulty and competitive pressures. Analysts from Yahoo Finance highlighted three key themes for Bitcoin miners in 2025—Bitcoin holdings yield strategies, HPC diversification, and regulatory shifts under potential new SEC leadership [1].

Repurchased shares will be canceled, reducing the total outstanding share count and potentially increasing the value of remaining shares. This approach aligns with evolving industry dynamics, where firms with strong cash positions and diversified revenue streams are better equipped to navigate market volatility. As Bitcoin miners balance growth investments with shareholder returns, Bitfarms’ buyback program highlights its commitment to rewarding investors while pursuing strategic expansion into emerging technologies [1].

Sources:

[1] Bitfarms Stock Jumps After Bitcoin Miner Reveals $64 Million Share Buyback Plan, Decrypt, https://decrypt.co/331266/bitfarms-stock-jumps-bitcoin-miner-64-million-share-buyback/

[2] Bitcoin Miner Bitfarms Jumps 8% on Share Buyback Program, CoinDesk, https://www.coindesk.com/tag/bitcoin-mining