Bitfarms stock could climb to $2.0: HCW analyst Kevin Dede

• HCW analyst says Bitfarms Ltd still has another 40% upside.
• The bitcoin miner reported strong results for its Q1 this week.
• Bitfarms stock is already up about 150% for the year at writing.

Bitfarms Ltd is already up close to 150% versus the start of the year but an H.C. Wainwright analyst is convinced that it’s not out of juice just yet.

Bitfarms stock has another 40% upside

On Tuesday, Kevin Dede reiterated his “buy” rating on the bitcoin miner with upside to $2.0 – up another 40% from here.

His bullish call on Bitfarms stock arrives a day after the company said its revenue noted an 11% sequential growth in the first quarter. Dede acknowledged that mining costs were up more than 12% versus Q4 but wrote:

Bitfarms still harnesses some of the lowest cost of power among its peers by predominately drawing hydropower. Bitfarms prides itself on its renewable energy sources.

Its adjusted EBITDA more than quintupled versus the previous quarter to $6.3 million in Q1, as per the earnings press release.

Bitfarms has a strong balance sheet

Also a positive was “hash rate” that increased about 7.0% in the recently concluded quarter to 4.8 EH/s. More importantly, Bitfarms sees that climbing further to 6.0 EH/s by the end of the third quarter.

Strength of the balance sheet was among other notable reasons why Dede remains constructive on Bitfarms stock. The Toronto-headquartered firm now has $19 million in debt only versus $140 million about 10 months ago.

The HCW analyst now expects Bitfarms to generate $132.4 million in revenue this year versus his previous forecast for $119.9 million. In the research note, he also said:

Its 10 sites across 4 countries mitigate geographical risks. In front of halving, BITF positions itself with strategic mix of stability, liquidity, prudent financial mgmt, and plans for growth.