Bitcoin mining company BitFarms (BITF) spiked Tuesday. The company has announced that it will purchase 10% of its public floats of its common stock.
The Toronto-based company said it will acquire up to 50 million shares in the open market through the NASDAQ and the Toronto Stock Exchange for the next 12 months with a buyback plan starting July 28, with purchases being subject to regulatory restrictions and daily volume caps. All repurchased shares will be cancelled.
BITF’s stock rose 18% on the news before valuing profits. Recently, the majority of the rest of the Bitcoin Mining Center lost ground, and even if Bitcoin fell below $118,000 again, it was up 8%.
“We believe BitFarm’s stock is currently undervalued because the Bitcoin business is undervalued by the market and the potential for HPC is barely worth it,” CEO Bengagnon said. “We strongly believe that Pennsylvania’s unique and highly desirable energy portfolio will promote long-term, sustainable growth that can be funded, enabling management to leverage shareholder value in this buyback program, and pursuing growth opportunities for HPC/AI to optimally leverage US large-scale energy pipeline.”