Bitcoin News Today: Bitfarms Share Buyback Sparks 14% Stock Surge as CEO Cites Undervaluation

Bitfarms Ltd. (Nasdaq/TSX: BITF) has launched a share repurchase program, triggering an immediate 14% stock surge as investors responded to the company’s strategic move [3]. The program, announced on July 22, 2025, authorizes the buyback of up to 49,943,031 common shares—10% of its public float—between July 28, 2025, and July 27, 2026. Transactions will occur on the Toronto Stock Exchange (TSX) and Nasdaq, with daily repurchase limits of 494,918 shares on the TSX and up to 5% of outstanding shares on Nasdaq annually [1]. The initiative follows a 14% post-announcement rally in shares, as reported by AInvest, and an 8% jump noted by CoinDesk [2].

The repurchase program reflects management’s confidence in the company’s undervaluation, with CEO Ben Gagnon stating, “We believe our shares are undervalued because the market underappreciates the Bitcoin business and the HPC potential” [1]. Bitfarms aims to leverage its energy assets in Pennsylvania to drive growth in Bitcoin mining and high-performance computing (HPC), a sector the company views as underexploited. The buyback also includes an automatic arrangement with a designated broker to facilitate transactions during blackout periods, ensuring flexibility in execution [1].

Market reactions have been largely positive but varied. While CoinDesk reported an 8% intraday gain [2], AInvest attributed the broader 14% rise to renewed investor confidence in the firm’s strategic direction [3]. However, the program’s effectiveness remains contingent on execution and broader market dynamics. Critics have questioned whether the $64 million allocated for repurchases could be redirected to organic growth projects [3], though the predefined limits and regulatory adherence highlight the company’s disciplined approach.

Bitfarms’ dual focus on capital allocation and long-term growth positions it to enhance shareholder value while expanding into energy-efficient HPC and artificial intelligence sectors. The program’s emphasis on reducing equity dilution and potentially boosting earnings per share aligns with common capital market strategies. The CEO’s emphasis on HPC potential underscores a broader industry shift toward computing infrastructure, though tangible results will be critical to sustaining market optimism.

For investors, the move signals a balance between short-term value creation and long-term opportunities in energy and computing. Success will depend on Bitfarms’ ability to execute its repurchase strategy while capitalizing on its Pennsylvania energy assets [1]. The company’s commitment to Bitcoin mining remains intact, but the integration of HPC represents a strategic pivot that could redefine its market perception.

Source:

[1] [Bitfarms Announces Corporate Share Buyback Program] (https://www.nasdaq.com/press-release/bitfarms-announces-corporate-share-buyback-program-2025-07-22)

[2] [Bitcoin Miner Bitfarms Jumps 8% on Share Buyback Program] (https://www.coindesk.com/business/2025/07/22/bitcoin-miner-bitfarms-jumps-8-on-share-buyback-program)

[3] [Bitfarms' $64M Share Buyback Sparks 14% Stock Jump] (https://www.ainvest.com/news/bitcoin-news-today-bitfarms-64m-share-buyback-sparks-14-stock-jump-ai-expansion-strategy-gains-traction-2507/)