Bitcoin mining agency Bitfarms (BITF) surged on Tuesday as the corporate introduced to purchase again as much as 10% of its widespread inventory’s public float.
The Toronto-based firm mentioned the buyback plan, starting July 28, will let it purchase as much as almost 50 million shares on the open market by way of the Nasdaq and Toronto Inventory Alternate over the following 12 months, with purchases topic to regulatory limits and each day quantity caps. All repurchased shares shall be cancelled.
BITF shares rallied as a lot as 18% on the information earlier than paring some the beneficial properties. Not too long ago, it was up 8% whilst many of the remainder of the bitcoin mining middle misplaced floor with bitcoin once more declining beneath $118,000.
“We imagine that Bitfarms’ shares are at the moment undervalued as a result of our Bitcoin enterprise is underappreciated by the market, with little to no worth being related to our HPC potential,” mentioned CEO Ben Gagnon mentioned. “We strongly imagine our distinctive and extremely fascinating vitality portfolio in Pennsylvania will drive long-term, sustainable progress that’s financeable and allows administration to leverage its steadiness sheet power to drive shareholder worth with this buyback program whereas concurrently pursuing progress alternatives in HPC/AI to greatest capitalize on our substantial US vitality pipeline.”
