Bitfarms – Bitcoin Mining Stocks Are Going to the Moon

In 2021 there’s a bubble within a bubble on the stock market and that’s because of Bitcoin’s rise and the stocks I’m referring to are Bitcoin Mining stocks such as Bitfarms $BITF (TSX).

The stock was $0.30 on October 2nd, 2020 and now it’s up at $3.97 at the time of writing. There are many such examples of stocks tethered to Bitcoin’s rise that have made some of the most profitable trades of late 2020 and early 2021.

These Bitcoin farms are also taking up a lot of electricity. Bitfarms Ltd., a Canadian cryptocurrency mining company, will soon be drawing 69 megawatts of electricity for its five ‘data centres’ — enough to power 25,000 homes in Quebec.

Bitfarms Ltd., a blockchain infrastructure company, mines for cryptocurrency coins in North America. Bitfarms requires that flow to power its tens of thousands of computers, stacked in warehouses in Cowansville, Magog, Farnham, St. Hyacinthe and Sherbrooke, which are constantly trying to solve complex algorithms to process Bitcoin transactions and earn bitcoins.

The company is up 721% over the last quarter and Bitcoin related stocks are going through a FOMO rise that shows just how mainstream penny stocks have become. Bitfarms, founded in 2017, averages a haul of more than six bitcoins per day and says it is responsible for mining about one percent of all the Bitcoin mined globally each day. That’s impressive considering it only has 5 locations in Quebec.

Bitfarms grew its revenue by 27% last year. You can check out their website here. While we think of Tesla’s 1,200% run from its March lows to being the biggest market mover of retail investors on Robinhood in 2020, Bitcoin related stocks have been the most profitable. And there are literally dozens of them which the Last Futurist profiled in a previous article.

Bitfarms has a current market value of $260 million with 85.72 million shares outstanding. And to be clear we’re not advocating that you buy this stock. But the reality is Bitcoin is creating a bubble inside a market bubble. The value of a single Bitcoin on Friday smashed the US$40,000 barrier, having rocketed 930 per cent in one year, and 42 per cent in the first week of January alone.

While crypto related companies brag of being part of a global decentralized financial economy, they are just in it for the Bitcoin FOMO. Do Bitcoin miners care about disrupting finance with digital assets that have no intrinsic value? The energy management of Quebec is concerned with the energy demands of Bitcoin mining.

Hydro-Québec has proposed rates and conditions of service targeted specifically at the cryptocurrency mining industry. That’s a bit like a crypto tax, to be honest.

Bitfarms President Geoffrey Morphy says the company has long-term contracts in place for up to 167 megawatts of electricity in Quebec and expects it could hit that level of consumption by this year’s end, as it adds thousands of computers and expands its computing power by a factor of three, to a so-called “hashrate” of three exahash per second (three trillion mathematical calculations a second).

Riot, Hive, Cannan, Argo, Bitfarms, leaping to the Moon. The Bitcoin bubble is real. While Quebec has the most draconian Covid-19 curfew in place in North America, the Bitcoin mining is alright. 2021 looks like the new normal of a world and stock market that’s increasingly not making sense.

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