Bitfarms (BITF) Stock Deserves Higher Multiple as Q3 Earnings Show Strategic Pivot to High-Margin AI Energy Facilities

Bitfarms Ltd. (NASDAQ:BITF) is one of the stocks that will double in 2026. On November 14, Alliance Global analyst Brian Kinstlinger raised the firm’s price target on Bitfarms to $6 from $2.50 and kept a Buy rating on the shares. This sentiment followed the company’s Q3 2025 earnings report. Kinstlinger believes that Bitfarms’ stock deserves a much higher multiple because the company is actively mitigating risks associated with timing, capital requirements, and future tenant demand. Bitfarms plans to transition most of its energy capacity to facilities dedicated to AI to generate long-term recurring revenue and yield very high margins, which could justify a higher valuation for the firm.

In its Q3 2025 earnings report, Bitfarms highlighted significant progress in transitioning from Bitcoin mining to becoming a leading North American HPC and AI infrastructure provider. However, this transition requires significant capital expenditure and operational changes, leading to inherent execution risks. A major uncertainty is the exact timeline for securing additional power capacity at key sites, specifically Panther Creek and Scrubgrass, which could delay project milestones. In the short term, winding down Bitcoin mining operations, starting with the sale of the Paso Pace facility (about 20% of their hash rate), will affect immediate cash flow until the HPC and AI projects become fully operational.

Bitfarms (BITF) Stock Deserves Higher Multiple as Q3 Earnings Show Strategic Pivot to High-Margin AI Energy Facilities

The company was able to make a total revenue of $83.66 million, which was an 86.52% increase as compared to the year-ago period, although this number missed Street expectations by $998.78K. However, Bitfarms generated a quarterly loss of $0.15 per share in Q3.

Bitfarms Ltd. (NASDAQ:BITF) operates integrated bitcoin data centers in Canada, the US, Paraguay, and Argentina. It primarily owns and operates data centers housing computers and sells computational power in multiple jurisdictions.

While we acknowledge the potential of BITF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BITF and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.