Bitfarms: The Adverse Ripple Effect Of 'Slow And Steady'

Summary

• The "Slow and Steady Lose The Race" thesis carried deeper implications for BITF and the broader Bitcoin sector than initially thought.
• Through BITF, we showed that "Slow and Steady" is more detrimental than good where its adverse impact is directly proportional to the inability to expand.
• This observation transformed BITF's 6.5% quarterly shareholder dilution from a source of weakness into a source of strength.
• We also showed how a sector-wide consolidation can be brought about and how BITF is positioned better to benefit from it.
• Our BITF outlook may have improved, but BITF's high valuation (2.9x adj Book value) suggests exercising patience.

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Introduction

In our previous article, we noted an emerging risk of consolidation in the Bitcoin (BTC-USD) mining sector. We coined this observation as the "Slow and Steady Lose The Race" thesis. We initially made this observation through Bitfarms (

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTC-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.