Bitfarms (BITF) Soars 5.54% as AI Infrastructure Pivot and Bitcoin Rally Drive Momentum

Bitfarms (BITF) surged 5.54% on Monday, extending its winning streak to seven consecutive sessions with a cumulative gain of 138.28% over the past week. The stock reached an intraday high of $2.90, its highest level since September 2025, marking a 7.96% rally amid renewed investor optimism. This momentum reflects strategic shifts and evolving market dynamics in the crypto and AI infrastructure sectors.

The company’s recent performance is tied to a strategic realignment, including exiting operations in Argentina and doubling down on U.S. and Canadian markets. Bitfarms is now prioritizing AI-driven data center development, with plans to expand its footprint in Pennsylvania and Washington. This pivot aligns with industry trends as competitors like CoreWeave and Core Scientific also target AI infrastructure, a sector poised for exponential growth due to surging demand for computing power.

Financial results in August underscored the firm’s adaptability, with revenue jumping 87% year-over-year to $78 million. Higher Bitcoin prices and increased mining output fueled this growth, though gross mining margins dipped to 45% as the company invests in capital-intensive projects. The exit from Argentina, while incurring a one-time loss, signals a focus on streamlining operations and mitigating risks linked to volatile international markets.

Bitcoin’s price recovery has been a tailwind for Bitfarms, enhancing mining revenue and investor sentiment. The broader crypto sector has seen double-digit gains for peers like Iris Energy and Marathon Digital, driven by expectations of U.S. Federal Reserve rate cuts. Bitfarms’ stock has also benefited from a “golden cross” technical pattern, where its 50-day and 200-day EMAs intersected, signaling bullish momentum. However, overbought conditions on the RSI and Stochastic Oscillator suggest potential short-term volatility.

While the AI data center push offers long-term growth potential, it carries risks such as share dilution and high capital expenditures. The company’s ability to balance expansion with profitability will be critical. Broader market factors, including macroeconomic shifts and institutional adoption of Bitcoin, further support the sector’s positive trajectory. Investors are advised to monitor execution efficiency and cash flow sustainability as key indicators of the stock’s future performance.