Bitcoin News Today: Bitfarms Launches Share Buyback Boosts Stock 26% on Bitcoin Holdings Strategy

Bitfarms Ltd. has launched a share repurchase program, signaling confidence in its Bitcoin mining operations and high-performance computing infrastructure. The Toronto-based company, which ranks as the sixth-largest Bitcoin miner with a market capitalization of $630 million, announced on July 28, 2025, a buyback initiative extending until July 27, 2026. The program aims to repurchase 10% of its public float—equivalent to 49.9 million shares from its 499 million outstanding shares—under the supervision of the Toronto Stock Exchange (TSE) and potentially the Nasdaq [1]. Daily purchase limits are set at 25% of the average TSE trading volume and 5% on the Nasdaq.

The move follows a 26% surge in the company’s stock price over 48 hours, pushing it to a five-month high after the announcement. CEO Ben Gagnon attributed the buyback to the company’s belief that its shares are “undervalued,” emphasizing Bitcoin mining and computing assets as core strengths. “This buyback demonstrates our confidence in Bitfarms’ business and data center growth strategy,” he stated. The company currently operates 15 Bitcoin mining facilities across the U.S., Canada, Argentina, and Paraguay, while holding 188 Bitcoin valued at $22 million based on current prices [2].

Bitfarms’ strategic approach combines share repurchases with Bitcoin accumulation, aligning with broader industry trends observed in miner reserve behaviors. According to the Miner Supply Ratio from CryptoQuant, miners have recently exhibited a tendency to retain Bitcoin, with the metric reaching 0.09093. This pattern often correlates with profitable conditions, suggesting miners are prioritizing long-term asset management over immediate sales [3]. For Bitfarms, the dual focus on cost-effective mining operations and strategic Bitcoin holdings positions the firm to capitalize on both operational efficiency and market volatility.

The buyback program reflects a defensive financial strategy amid the cryptocurrency sector’s cyclicality. By reducing the public float, Bitfarms may enhance earnings per share metrics while signaling short-term stability to investors. The company’s Bitcoin reserves, equivalent to approximately 0.188% of the total circulating supply, further underscore its commitment to long-term value retention. Analysts note that such reserve strategies are increasingly common among miners, as firms balance operational cash flow with macroeconomic uncertainties [4].

Bitfarms’ geographic diversification across the Americas also strengthens its resilience against regional energy price fluctuations. Its 15 mining centers are strategically located to leverage low-cost energy sources, a critical factor in maintaining profitability during periods of Bitcoin price consolidation. The firm’s ability to generate consistent hashrate output while expanding its high-performance computing portfolio differentiates it from smaller operators reliant on speculative market conditions.

The announcement comes as Bitcoin miners face renewed scrutiny over capital allocation practices. While some firms prioritize debt reduction or dividend payouts, Bitfarms’ decision to allocate capital to both share repurchases and Bitcoin accumulation highlights a hybrid approach. This strategy aims to stabilize shareholder value during volatile market phases while preserving liquidity for potential growth opportunities.

Source: [1] [title1Bitfarms Initiates Share Buyback Amid Bitcoin Holdings] [url1https://coinmarketcap.com/community/articles/68827ba2747ff0612d594adc/]

[2] [title2Bitfarms Initiates Share Buyback Amid Bitcoin Holdings] [url2https://coinmarketcap.com/community/articles/68827ba2747ff0612d594adc/]

[3] [title3Bitcoin miner reserves show accumulation patterns] [url3https://coinmarketcap.com/community/articles/68827ba2747ff0612d594adc/]

[4] [title4Bitfarms Initiates Share Buyback Amid Bitcoin Holdings] [url4https://coinmarketcap.com/community/articles/68827ba2747ff0612d594adc/]