Bitfarms (BITF) Surges 10.65% on Strategic AI Pivot and $588M Financing—What’s Fueling This Volatile Move?

Summary
• Bitfarms (BITF) surges 10.65% to $2.69, trading between $2.45 and $2.71
• Q3 revenue jumps 156% to $69M, but GAAP loss widens to $0.08/share
• Announces $588M convertible notes and Washington site conversion to HPC/AI
• Options activity spikes, with 146,304 calls traded—55% above average

Bitfarms’ stock has erupted in a dramatic 10.65% intraday rally, fueled by a strategic pivot to high-performance computing (HPC) and AI infrastructure. The company’s Q3 results, while showing a $46M net loss, were overshadowed by a $588M convertible financing and plans to retrofit its Washington site for Nvidia GB300 GPUs. Traders are betting big, with call options surging 39% in volume, signaling speculative optimism amid a sector-wide shift from crypto mining to AI-driven infrastructure.

Strategic AI Pivot and Capital Raise Ignite Short-Term Optimism
Bitfarms’ 10.65% surge stems from a dual catalyst: a $588M convertible note offering and a strategic shift to HPC/AI infrastructure. The company announced plans to convert its Washington site to support Nvidia’s GB300 GPUs with liquid cooling, targeting December 2026 completion. This pivot aligns with broader industry trends as crypto miners seek higher-margin opportunities. Additionally, the $588M financing provides liquidity to accelerate HPC/AI development, including Panther Creek campus projects. While Q3 results showed a $0.08/share GAAP loss and revenue shortfall, the market is focusing on long-term AI monetization potential, with call options surging 39% in volume as traders bet on a rebound.

Options Playbook: Leverage BITF’s Volatility with Gamma-Driven Calls and Puts
• Kline pattern: Short-term bearish trend, long-term ranging
• MACD: -0.374 (bearish), Signal Line: -0.229, Histogram: -0.145
• RSI: 15.85 (oversold)
• Bollinger Bands: Upper $4.85, Middle $3.44, Lower $2.03
• Moving Averages: 30D $3.97, 100D $2.45, 200D $1.73
• Support/Resistance: 30D $2.59–$2.67, 200D $1.03–$1.15

BITF’s technicals suggest a volatile short-term setup. The RSI at 15.85 indicates oversold conditions, while the MACD histogram remains bearish. However, the 30D moving average ($3.97) is significantly above the current price, hinting at potential retesting of key resistance levels. Two options stand out for their gamma and liquidity:

• BITF20251219C2.5
- Type: Call
- Strike: $2.50
- Expiry: 2025-12-19
- IV: 123.49% (high volatility)
- Delta: 0.656 (moderate sensitivity)
- Theta: -0.0083 (moderate time decay)
- Gamma: 0.414 (high sensitivity to price moves)
- Turnover: 5,073
- LVR: 5.99% (moderate leverage)
- Payoff at 5% upside ($2.82): $0.32/share (32% return on strike).
- Why it works: High gamma and moderate delta make this call ideal for a short-term rally, with liquidity to enter/exit.

• BITF20251219P2.5
- Type: Put
- Strike: $2.50
- Expiry: 2025-12-19
- IV: 124.33% (high volatility)
- Delta: -0.344 (moderate downside protection)
- Theta: -0.0045 (low time decay)
- Gamma: 0.412 (high sensitivity to price moves)
- Turnover: 191,394
- LVR: 10.78% (moderate leverage)
- Payoff at 5% downside ($2.55): $0.05/share (2% return on strike).
- Why it works: High gamma and liquidity make this put a hedge against a pullback, with low theta decay.

Action: Aggressive bulls may consider BITF20251219C2.5 into a bounce above $2.70. Cautious traders should pair this with BITF20251219P2.5 to cap downside risk.

Backtest Bitfarms Stock Performance
Here is the interactive back-test dashboard – it contains the core setup and the full performance summary. Please review the module for all details.Key assumptions auto-filled for you • Stop-loss 8 %, take-profit 15 %, max holding 20 days – standard short-term momentum risk controls. Feel free to adjust and rerun if you’d like to explore alternatives.Open the dashboard above to inspect cumulative returns, risk metrics, and individual trade logs.

BITF’s AI Re-Rating Begins—But Volatility Remains a Double-Edged Sword
Bitfarms’ 10.65% surge reflects market optimism about its AI infrastructure pivot, but the stock’s technicals remain mixed. The RSI at 15.85 suggests oversold conditions, yet the MACD histogram remains bearish, indicating unresolved short-term pressure. Traders should monitor the $2.70 level for a breakout confirmation and the $2.50 support for a potential rebound. With $588M in liquidity and a strategic shift to HPC/AI, BITF’s long-term trajectory is positive, but near-term volatility is likely. Sector leader Equinix (EQIX) is up 0.07% today, signaling broader data center demand. Investors should watch for a sustained close above $2.70 or a breakdown below $2.50 to define the next move.