Bitfarms Launches $64 Million Share Buyback Program Citing Market Undervaluation
Bitcoin mining company Bitfarms announced Tuesday that its Board of Directors approved a corporate share buyback program beginning July 28, 2025. According to Cointelegraph, the Toronto-based company received approval from both the Toronto Stock Exchange and Nasdaq to repurchase up to 49,943,031 common shares.
The program represents approximately 10 percent of Bitfarms' public float of 499,430,313 common shares. The company had 557,548,857 total outstanding shares as of July 14, 2025. CEO Ben Gagnon stated the buyback reflects management's belief that shares are currently undervalued due to limited market recognition of their high-performance computing potential.
Bitfarms operates 15 Bitcoin mining data centers across the United States, Canada, Argentina, and Paraguay. The company trades under ticker BITF on both exchanges and will conduct repurchases through the next 12 months ending July 27, 2026.
Why This Stock Buyback Matters for Shareholders
The share repurchase program directly addresses Bitfarms' strategic shift from pure Bitcoin mining to artificial intelligence infrastructure hosting. Daily repurchases on the TSX will be limited to 494,918 common shares, representing 25 percent of the average daily trading volume from the six months ending June 30, 2025.
CoinDesk reported that Bitfarms shares jumped 8 percent in Tuesday trading following the announcement. The stock had declined 55 percent over the past year as crypto miners faced profitability challenges from the April 2024 Bitcoin halving event.
We previously reported that 15 US states are moving forward with plans for Bitcoin reserves, with Pennsylvania, Arizona, and New Hampshire proposing allocations up to 10 percent of public funds for Bitcoin purchases. This government interest in Bitcoin as a strategic asset aligns with Bitfarms' positioning of their Pennsylvania energy portfolio as a growth driver for both mining and HPC operations.
All repurchased shares will be canceled, reducing the total outstanding share count and potentially increasing the value of remaining shares. The program comes as Bitfarms secured a $300 million credit line from Macquarie to expand HPC facilities in Pennsylvania and sold its Paraguay mining site to Hive Digital for $85 million.
Industry Shift Toward Strategic Capital Returns
The Bitfarms buyback reflects a broader trend among Bitcoin mining companies returning capital to shareholders through repurchase programs. Investing.com reported that TeraWulf announced a $200 million share buyback program in October 2024, demonstrating similar confidence in their business strategy and financial health.
The mining industry faces increased competition as Bitcoin mining difficulty rises and companies diversify into artificial intelligence and high-performance computing services. Analysts from Yahoo Finance identified three key themes for Bitcoin miners in 2025: Bitcoin holdings yield strategies, diversification into HPC markets, and favorable regulatory shifts under potential new SEC leadership.
Mining companies are exploring securities lending strategies that would allow them to convert Bitcoin reserves into ETF shares through in-kind transfers and earn income by lending these shares. This approach could provide additional revenue streams beyond traditional mining operations while regulatory approvals remain pending.
The competitive landscape continues evolving as miners balance growth investments with shareholder returns. Companies with strong cash positions and diversified revenue streams are better positioned to weather market volatility while pursuing strategic expansions into emerging technologies like artificial intelligence infrastructure hosting.
