Analysts at H.C. Wainwright have expressed confidence that the appointment of Ben Gagnon as CEO has alleviated a major concern regarding BitFarms’ stock. On July 8, Bitfarms announced that Gagnon would take over as CEO effective immediately, concluding a rigorous three-month executive search to replace former CEO Geoff Morphy. Gagnon, having spent five years with BitFarms, brings extensive Bitcoin mining experience and a comprehensive understanding of the company’s strategic vision.
Previously, Gagnon served as the Chief Mining Officer at BitFarms, where he played a pivotal role in shaping and implementing the company’s Bitcoin mining strategy and operations. Under his leadership, BitFarms crafted a transformative growth strategy aiming to achieve a hash rate guidance of 21 EH/s by the end of 2024.
In the press release, BitFarms’ Chairman of the Board of Directors, Nicolas Bonta, expressed optimism about Gagnon’s role in expanding and diversifying the business. New areas of focus include energy generation, heat recycling, energy trading, and high-performance computing for artificial intelligence. Gagnon’s appointment is expected to enhance BitFarms’ capital deployment and facilitate expansion into synergistic growth opportunities.
“Ben Gagnon is the perfect fit for the role, as we see it,” analysts at H.C. Wainwright stated, reaffirming their ‘Buy’ rating on BITF’s stock. The market responded positively to the announcement, with BitFarms’ shares (BITF) trading modestly higher, outperforming Bitcoin, which saw a 1.8% decline on the same day. Currently, BITF is trading at $2.55 a share, down 4.3%.
Analysts at H.C. Wainwright remain confident that Gagnon’s appointment eliminates a significant overhang on the stock, aligning with BitFarms’ future growth prospects. Gagnon’s career at BitFarms began in 2019 as Director of Business Development, progressed to Director of Mining Operations in 2020, and then to Chief Mining Officer in 2021. His extensive experience encompasses mining strategy, growth initiatives, and miner portfolio management.
Before joining BitFarms, Gagnon founded and operated two Bitcoin mining companies and held positions such as CEO, Chief Mining Officer, and CTO. He holds an M.Sc. in Internet Computing from Hong Kong University and a B.Sc. in Economic Consulting and International Business from Indiana University’s Kelley School of Business.
H.C. Wainwright reiterated its Buy rating with a $4 price target, based on a 6.0x EV/Revenue multiple against a $221.5M 2024 revenue estimate. The company’s valuation reflects its competitive positioning within the BTC mining sector.
