Why Bitfarms Stock Is Down After Hours?

Keefe Bruyette downgraded Bitfarms to ‘Market Perform’ from ‘Outperform’.

• Keefe kept a price target of $3 up from $2.50 on the stock. 
• Keefe has concerns around Bitfarms's rising leverage and elevated capex. 
• The firm said it does not expect a leasing agreement to materialize for BITF until the second half of 2026.

Shares of Bitfarms were down more than 1% during after hours of trading on Monday after an analyst raised liquidity concerns for the firm. 

Shares in the company closed down 5.5% on Monday. 

Liquidity Risks

Keefe Bruyette downgraded Bitfarms to ‘Market Perform’ from ‘Outperform’ with a price target of $3, up from $2.50. 

The firm said it does not expect a leasing agreement to materialize for the company until the second half of 2026. The stock already discounts a Sharon deal, said Keefe, which also has concerns around Bitfarms's rising leverage and elevated capex. 

Keefe said it would get more constructive on the shares with greater clarity on the company's liquidity and 2026 capex.

Capital Raises

Bitfarms in October had said that it has closed its offering of $588 million aggregate principal amount of 1.375% convertible senior notes due 2031. It said that Interest coupon will be payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2026.

Bitfarms had also converted a private debt facility for up to $300 million from Macquarie Group’s Commodities and Global Markets business, to an up to $300 million project-specific financing facility for the development of its data center campus in Panther Creek, Pennsylvania.

AI Data Center Push

Bitfarm in 2024 had entered into the definitive lease agreement and assumed control of its newest data center in Sharon, Pennsylvania, initially announced on June 13, 2024.

This site represented Bitfarms’ first mega-site in the U.S. with access to up to 120 MW. 

Bitfarms has planned to wind down its Bitcoin mining operations by 2027, and its transition will begin with its 18-megawatt site in Washington State.

LatAm Exit Deal

BITF earlier in the month said it has entered into a share purchase agreement to sell its 70 MW site in Paso Pe, Paraguay, to the Sympatheia Power Fund (SPF), a crypto infrastructure fund managed by Singapore-based Hawksburn Capital.

The deal was valued at $30 million. Bitfarms would receive $9 million in cash upon closing, expected in Q1 2026, and up to $21 million over 10 months following closing, based on certain payment milestones, it had stated.

How Did Stocktwits Users React?

Retail sentiment around BITF trended in ‘bearish’ territory amid ‘low’ message volume.

Shares in the company have risen 65% over the past 12 months.