Bitcoin Miner Bitfarms shares rose sharply on Tuesday after the Canadian company announced its share buyback program.
BitFarm, which trades on both the Toronto Stock Exchange and the NASDAQ, recently traded nearly 14% on the American Index (NASDAQ: BITF) at a price of $1.28.
The Toronto-based company said it is currently permitted to purchase up to 49,943,031 common stock from unpaid common stock of 557,548,857 common stock. This represents up to 10% of BitFarm's public floats with 499,430,313 common stocks.
Bitfarms CEO Ben Gagnon said, “We believe Bitfarms stock is currently undervalued because it is currently undervalued from the market.
Stock buybacks are when companies buy their own shares and expect to raise prices by reducing prices from the market and reducing supply.
Bitcoin Mining The giant bit farm in March purchased base digital mining as part of a bigger push artificial intelligence industry.
Bitcoin Miner is home-in to AI. With huge amounts of energy and data centers needed in both industries, mining operations can use existing infrastructure to meet AI demands.
Bitcoin mining, a business of merging transaction processing and new digital coins, is a tough industry as the prices of major cryptocurrencies are unstable. If that's too much, miners can have a hard time covering their costs. The difficulty of mining is increasing frequently, further complicating the problems of such companies.
BitFarms is one of the largest miners in the space, with 15 data centers scattered across Canada, the US, Argentina and Paraguay.
