Bitfarms (BITF) Surges 9.68% Amid Strategic Shifts and AI-Driven Hype: What’s Fueling This Volatile Move?

Summary
• Bitfarms (BITF) rockets 9.68% to $2.4897, hitting a 52-week high of $6.60
• Partnership with T5 Data Centers and U.S. GAAP conversion drive investor speculation
• Options frenzy: 18M+ shares traded, with 2025-12-26 $2.5 calls leading the charge

Bitfarms’ sharp intraday rally has ignited a frenzy in the crypto-mining sector, with the stock surging 9.68% to $2.4897 as of 16:08 ET. The move follows a strategic partnership with T5 Data Centers to advance HPC/AI development at its Panther Creek campus and a pivotal shift to U.S. GAAP accounting. With turnover hitting 18.07M shares and options volatility spiking, the stock’s trajectory reflects a mix of sector optimism and speculative fervor.

Strategic AI Expansion and Accounting Shifts Ignite BITF’s Rally
Bitfarms’ 9.68% surge is directly tied to two key announcements: a partnership with T5 Data Centers to develop HPC/AI infrastructure at its Panther Creek campus and a transition to U.S. GAAP financial reporting. The former signals a pivot toward high-performance computing (HPC) and AI, aligning with broader tech-sector trends, while the latter enhances transparency for U.S. investors. These moves have rekindled interest in BITF’s vertically integrated data centers, which now span four countries, and positioned the company as a potential beneficiary of AI-driven compute demand.

IT Services Sector Volatility: BITF Outpaces Peers Amid AI Hype
The IT Services sector, led by NVIDIA’s 2.99% intraday gain, has seen mixed performance amid AI-driven speculation. Bitfarms’ 9.68% surge outpaces peers like Hut 8 Corp. (HUT.TO, +9.90%) and HIVE Digital Technologies (HIVE.V, +5.43%), reflecting heightened enthusiasm for its AI infrastructure pivot. While NVIDIA’s dominance in AI hardware underscores sector-wide optimism, BITF’s strategic partnerships and accounting shift have created a unique catalyst for short-term volatility.

Options Playbook: Leverage BITF’s Volatility with High-Gamma Calls
• 200-day MA: 1.87 (below current price)
• RSI: 7.69 (oversold)
• MACD: -0.24 (bearish), Signal Line: -0.19 (bearish)
• Bollinger Bands: Upper $3.49, Middle $2.84, Lower $2.18 (current price near lower band)

BITF’s technicals suggest a short-term rebound from oversold levels, with key support at $2.18 and resistance at $3.49. The stock’s 9.68% rally has created a high-gamma environment, making options with near-term expirations and moderate strike prices ideal for capitalizing on volatility. Two top options from the chain:

• BITF20251226C2.5
- Type: Call
- Strike Price: $2.50
- Expiration: 2025-12-26
- IV: 77.36% (high volatility)
- Leverage Ratio: 22.64% (moderate)
- Delta: 0.51 (moderate sensitivity)
- Theta: -0.0131 (rapid time decay)
- Gamma: 1.398 (high sensitivity to price changes)
- Turnover: 11,856 (high liquidity)
- Payoff (5% upside): $0.24 per share
- Why: High gamma and moderate delta make this call ideal for a short-term breakout above $2.50, with strong liquidity to manage entry/exit.

• BITF20260102C2.5
- Type: Call
- Strike Price: $2.50
- Expiration: 2026-01-02
- IV: 85.88% (high volatility)
- Leverage Ratio: 14.65% (moderate)
- Delta: 0.529 (moderate sensitivity)
- Theta: -0.0089 (moderate time decay)
- Gamma: 0.918 (high sensitivity)
- Turnover: 11,164 (high liquidity)
- Payoff (5% upside): $0.24 per share
- Why: Slightly longer-dated with similar gamma/delta characteristics, this call offers flexibility for a sustained rally into early 2026.

Action: Aggressive bulls should prioritize BITF20251226C2.5 for a quick play on the $2.50 breakout, while longer-term holders may consider BITF20260102C2.5 to ride potential AI-driven momentum.

Backtest Bitfarms Stock Performance
The backtest of BITF's performance following a 10% intraday surge from 2022 to the present indicates positive short-to-medium-term gains, with the 3-Day win rate at 44.65%, the 10-Day win rate at 45.58%, and the 30-Day win rate at 50.00%. However, the maximum return during the backtest period was only 9.96% over 30 days, suggesting that while there is potential for gains, they may be limited in the short to medium term.

BITF’s AI Pivot and Volatility: A High-Risk, High-Reward Setup
Bitfarms’ 9.68% rally is a high-stakes bet on its AI infrastructure pivot and U.S. GAAP transition, with technicals and options data pointing to a short-term breakout above $2.50. While the stock’s oversold RSI and Bollinger Band positioning suggest a rebound, the sector’s mixed performance and BITF’s high-gamma options environment demand caution. Investors should monitor the $2.50 level as a critical inflection point, with NVIDIA’s 2.99% gain in the IT Services sector offering a broader gauge of AI-driven optimism. For those willing to ride the volatility, BITF20251226C2.5 and BITF20260102C2.5 present compelling leverage opportunities—if the $2.50 threshold holds.