Bitfarms (BITF) Surges 12.25% Intraday: Strategic AI Pivot Ignites Bullish Frenzy – What’s Next?

Summary
• Bitfarms (BITF) surges 12.25% to $3.48, defying Q3 earnings disappointment and strategic AI/HPC transition.
• Q3 revenue hits $69M from continuing operations, but GAAP loss widens to $0.08/share, sparking selloff.
• Massive call-option buying (146K contracts) and Washington site conversion to AI/HPC infrastructure drive rebound.
• Intraday range: $3.24 to $3.57, with $3.48 closing near highs. Turnover hits 67M shares, 11.8% of float.

Bitfarms’ volatile session reflects a tug-of-war between bearish earnings sentiment and bullish AI/HPC speculation. The stock’s 12.25% rebound from post-earnings lows underscores aggressive call-option positioning and management’s pivot to high-margin data center infrastructure. With $588M in convertible notes secured and Panther Creek campus development underway, the AI transition could redefine BITF’s valuation framework.

Q3 Earnings Disappointment and AI Transition Fuel Volatility
Bitfarms’ 12.25% intraday rally emerged from a collision of bearish and bullish catalysts. The Q3 earnings report revealed a $0.08/share GAAP loss, missing estimates and sparking a post-earnings selloff. However, management’s announcement to convert the Washington site to support NVIDIA GB300s with liquid cooling infrastructure ignited speculative buying. Unusually high call-option volume (146K contracts, 55% above average) amplified the rebound, as traders bet on a re-rating once the AI/HPC project monetizes. The $588M convertible notes offering also provided liquidity to accelerate infrastructure upgrades, further stoking optimism.

Options Playbook: Capitalizing on BITF’s AI-Driven Volatility
• Technical Indicators:
- 200-day average: $1.75 (well below current price)
- RSI: 37.23 (oversold territory)
- MACD: -0.305 (bearish but near signal line)
- Bollinger Bands: $2.02–$4.42 (current price near 3.22 midpoint)

BITF’s 12.25% intraday surge suggests short-term bullish momentum, but the RSI at 37.23 indicates oversold conditions. The 200-day average ($1.75) is a critical support level. Aggressive bulls should target a break above $3.57 (intraday high) to confirm a shift in sentiment. The 30-day MA at $3.67 and 100-day MA at $2.50 suggest a mid-term range-bound setup.

Top Options Picks:
1. BITF20251205C3.5 (Call Option):
- Strike: $3.50 | Expiry: Dec 5 | IV: 128.29% | Delta: 0.5095 | Theta: -0.0239 | Gamma: 0.6086 | Turnover: $93.6K
- IV (128.29%): High volatility implies significant price swings.
- Delta (0.5095): Moderate sensitivity to price changes.
- Gamma (0.6086): High sensitivity to price acceleration.
- Theta (-0.0239): Time decay manageable for short-term plays.
- Turnover ($93.6K): Strong liquidity ensures easy entry/exit.
- Payoff at 5% upside (3.65): $0.15/share gain. This contract offers optimal leverage for a 5% move, with high gamma amplifying gains if BITF breaks above $3.50.

2. BITF20251212C3.5 (Call Option):
- Strike: $3.50 | Expiry: Dec 12 | IV: 132.77% | Delta: 0.5348 | Theta: -0.0163 | Gamma: 0.4280 | Turnover: $27.1K
- IV (132.77%): Even higher volatility than the Dec 5 contract.
- Delta (0.5348): Slightly higher sensitivity to price moves.
- Gamma (0.4280): Stronger sensitivity than the Dec 5 contract.
- Theta (-0.0163): Slower time decay compared to Dec 5.
- Turnover ($27.1K): Sufficient liquidity for mid-term plays.
- Payoff at 5% upside (3.65): $0.15/share gain. This contract balances time decay and gamma, ideal for a 7–10 day holding period if BITF consolidates above $3.48.

Action Plan: Aggressive bulls should prioritize BITF20251205C3.5 for a 5-day breakout play, while conservative traders may opt for BITF20251212C3.5 to capture a slower, more sustained move. Both contracts benefit from BITF’s AI/HPC narrative and high IV environment.

Backtest Bitfarms Stock Performance
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AI Transition Drives BITF’s Re-Rating – Watch $3.50 Breakout
Bitfarms’ 12.25% intraday surge reflects a pivotal inflection point in its AI/HPC transition. While Q3 earnings disappointed, the Washington site conversion and $588M financing provide a catalyst for long-term re-rating. Short-term traders should focus on the $3.50 level as a critical breakout threshold; a close above this would validate bullish sentiment. The sector leader Equinix (EQIX) is up 0.95% intraday, signaling broader data center demand. Investors should monitor BITF’s options activity and management guidance on the Panther Creek campus timeline. Act now: Buy BITF20251205C3.5 if $3.48 holds, or short-term puts if $3.24 support breaks.