BITF Stock Price Increases Over 20% Pre-Market: Why It Happened

By Amit Chowdhry ● Aug 9, 2021
  • The stock price of Bitfarms Ltd. (NASDAQ: BITF) increased by over 25% pre-market. This is why it happened.

The stock price of Bitfarms Ltd. (NASDAQ: BITF) increased by over 25% pre-market. There is no company-specific news driving the stock price up so it appears there are external factors at play.

Investors in stock trading platforms are citing the momentum in cryptocurrencies as being the driving force for the stock price increase. The price of the Bitcoin cryptocurrency is up more than 9% over the past week. And Ethereum is up more than 12% over the past week. 

Last week, Bitfarms had announced a Bitcoin production update and the announcement date of its second-quarter 2021 financial results.

Mining Production Highlights as of August 1, 2021:

— Mined 391 new Bitcoin during July 2021, Bitfarms’ largest monthly production rate achieved in 2021 and approximately 96% more than its mining production in January 2021. The Company is currently mining between 12½ and 13½ Bitcoin each day.

— Mined 1,748 Bitcoin in the first seven months of 2021, the largest number of Bitcoin mined in North America as reported by publicly-traded miners.

— Deposited 1,678 Bitcoin into custody through August 1, 2021, representing approximately 96% of the Company’s Bitcoin production this year and valued at approximately US$69.8 million based on the July 31st closing price of US$41,626.

Bitcoin Production Update

As of August, 1, 2021, Bitfarms’ year-to-date Bitcoin (BTC) production by month was:

January: 199

February: 178

March: 221

April: 232

May: 262

June: 265

July: 391

And as previously noted, the recent macroeconomic events in China have increased Bitfarms’ market share and daily Bitcoin production rate substantially. This increase in market share offsets the reduction in Bitcoin price from a high of about US$63,000 in April 2021 to its July 2021 month-end value of US$41,626. 

The company also announced that it will report its second quarter 2021 financial results on Monday, August 16, 2021, after the market close.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.