Bitcoin mining firm Bitfarms (BITF) surged on Tuesday as the company announced to buy back up to 10% of its common stock’s public float.
The Toronto-based company said the buyback plan, beginning July 28, will let it acquire up to nearly 50 million shares on the open market through the Nasdaq and Toronto Stock Exchange over the next 12 months, with purchases subject to regulatory limits and daily volume caps. All repurchased shares will be cancelled.
BITF shares rallied as much as 18% on the news before paring some the gains. Recently, it was up 8% even as most of the rest of the bitcoin mining center lost ground with bitcoin again declining below $118,000.
“We believe that Bitfarms’ shares are currently undervalued because our Bitcoin business is underappreciated by the market, with little to no value being associated with our HPC potential,” said CEO Ben Gagnon said. “We strongly believe our unique and highly desirable energy portfolio in Pennsylvania will drive long-term, sustainable growth that is financeable and enables management to leverage its balance sheet strength to drive shareholder value with this buyback program while simultaneously pursuing growth opportunities in HPC/AI to best capitalize on our substantial US energy pipeline.”