Analysts predict Bitfarms stock doubling after Riot settlement
The post Analysts predict Bitfarms stock doubling after Riot settlement appeared on BitcoinEthereumNews.com.
H.C. Wainwright analysts believe Bitfarms’ stock is set for growth following a settlement with Riot Platforms that ends a six-month-long hostile takeover attempt. Earlier on Sept. 23, Bitfarms and Riot Platforms reached an agreement to end Riot’s bid to take over the Canadian Bitcoin (BTC) mining firm. According to H.C. Wainwright analysts, Bitfarms’ stock should hit $4 per share. The analysts maintained their “Buy” rating on Bitfarms, viewing the company’s shares as undervalued, according to a note shared with crypto.news. At the time of writing, Bitfarms’ stock (NASDAQ: BITF) is trading at $2.06 per share. Based on 2024 revenue estimates, Bitfarms’ shares trade at roughly a 40% discount compared to other Bitcoin mining firms, the analysts noted. Details of the Bitfarms deal This deal marks the conclusion of Riot’s pursuit, which began in April when it offered $950 million to acquire Bitfarms – a proposal rejected by Bitfarms’ board as undervalued. Following the rejection, Riot acquired 19.9% of Bitfarms’ outstanding shares and sought to change the board structure through a special shareholder meeting, a move that has now been withdrawn as part of the settlement. Under the agreement, Bitfarms will expand its board to six members and will nominate an independent director, with Riot agreeing to support all proposed measures. Riot will also gain the right to acquire additional Bitfarms shares, provided it holds at least 15% of outstanding shares. Analyst’s thoughts According to the analysts, this agreement is a significant win for Bitfarms, removing a major overhang on the company’s shares. The analysts noted that Bitfarms can now focus on its 2024 growth strategy, aiming to achieve its target of 21 exahashes per second by the end of next year. They view this as a crucial step for Bitfarms to regain investor confidence and execute its expansion plans without…
Filed under: News - @ September 23, 2024 9:24 pm