bit farm (NASDAQ: BITF) is a Canadian company that is moving from Bitcoin Dig into the AI data center. Last month, its board approved plans to move the company to the United States and change its name to Keel Infrastructure.
It doesn’t cost much to add Bitfarms to your portfolio, as the current price is just over $2 per share. Is this an opportunity to buy early on a stock that promises life-changing returns?
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The shift to artificial intelligence infrastructure is a popular move among Bitcoin mining companies, and it makes sense from a financial perspective. They went from mining highly volatile cryptocurrencies, where rewards are cut in half approximately every four years, to providing data center capacity to top artificial intelligence companies.
Wondering how many can be produced, Crypto miningAnother miner turning to AI infrastructure signs 15-year lease with Amazon Network services last month. The deal is worth about $5.5 billion, or about $367 million per year, with a data center capacity of 300 megawatts.
Bitfarms’ North American energy portfolio has an impressive 2.1 gigawatts. In November last year, it signed a binding agreement with an unnamed US multinational company worth $128 million to provide 18 megawatts of data center capacity. If Bitfarms can continue to pursue such transactions, its revenue (and stock price) could soar.
However, there is substantial competition for these AI hosting contracts, including from other mining operations and established data center providers, including Apply numbers and Equinics. The transition to AI infrastructure is also expensive, and Bitfarms is already operating at a loss, tracking a net loss of $96 million.
Given the fierce competition in this space, I doubt Bitfarms will ever become a millionaire. It can still deliver strong returns, but it’s a high-risk, high-reward stock, so invest with caution.
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