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Bitfarms Stock Drop: Time to Sell?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/11/2025, 5:04 pm ET 11/11/2025, 5:04 pm ET | 5 min 5 min read
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Bitfarms Ltd. stocks have been trading down by -6.12% due to concerns over sustainability measures potentially impacting profitability.

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Live Update At 17:04:17 EST: On Tuesday, November 11, 2025 Bitfarms Ltd. stock [NASDAQ: BITF] is trending down by -6.12%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of Bitfarms Financials

As traders navigate the volatile world of penny stocks, it’s crucial to focus not just on potential earnings, but on the strategic retention of those earnings. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s not about how much money you make; it’s about how much money you keep.” Their success hinges upon disciplined risk management and a structured plan that emphasizes the importance of preserving capital to ensure sustainable growth over time.

Bitfarms recent decline in share price is not just a market fluke but can also be attributed to financial signals it has been sending out for quite some time. Their revenue saw a decrease of around 4% consistent with a previous decline from $778 million, with operational expenses overshadowing revenues, leading to losses. Bitfarms’ debt-to-equity ratio remains at 0.11, reflecting constrained financial leverage, while its quick ratio of 1 portrays a challenging liquidity position.

Their earnings report further substantiates a sluggish performance with a net loss of $28 million for the quarter ending Jun 30, 2025. This, juxtaposed with negative returns on assets and equity, points towards inefficient resource utilization and strategic setbacks.

Other financial ratios, such as gross margin and ebit margin, remain unfavorable, indicating profit challenges and potential sustainability issues. Decreased asset turnover, coupled with a high price-to-book ratio of 3.07, portrays a vulnerability towards over-valuation compared to tangible book value.

Behind the Shares Downfall

Convertible Notes Offering:

On Oct 15, 2025, Bitfarms announced their intentions to issue $300M worth of convertible senior notes. These notes are akin to convertible bonds, tradable into equity shares under specified conditions. Investors often view them cautiously when issued in large volumes especially if they lead to potential dilution of share value upon conversion to equity. Additionally, Bitfarms’ move to issue an additional $60M option for initial purchasers further raises alarms about leverage management, particularly when the net proceeds largely serve general corporate purposes rather than strategic growth investments.

Such actions tend to exert downward pressure on stocks as shareholders anticipate probable dilution and question the company’s reliance on debt for operations rather than equity-funded growth or operational cash flow reinvestment. In after-hours trading, this led to a significant stock value dip, heightening intensity amongst investors who already express skepticism about Bitfarms’ financial trajectory.

$588 Million Offering Closure:

Following the announcement, on Oct 21, 2025, Bitfarms closed a considerable $588M offering of senior notes at an interest rate of 1.375%. Though potentially supportive for short-term liquidity, it illustrates the firm’s dependence on debt. The offering’s completion saw a moderate decline in stock price by 2.7% as the market perceived over-leverage without correlating investment returns. This concern was amplified as the capital raised largely financed capped call transactions to lessen shareholder dilution, drawing skepticism about sustainable growth strategies.

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Moreover, such capital raising maneuvers, when coinciding with lackluster operational performance, may result in shareholder disengagement, fearing prolonged periods of low yields.

The Big Picture Outlook

Bitfarms appears to navigate a challenging period marred with investor hesitancy exacerbated by capital raises through convertible parities. The inherent risks associated with dilution, persisting losses, and strategic debt utilization raise questions about value propositions. The key lies in strategic maneuvering: aligning debt with capital-generative ventures, efficient asset utilization, and leveraging technology operationally.

The company’s performance ahead underscores intensifying market scrutiny towards profitability, competitiveness, and stability. As a result, investors cautiously question the tangible growth Bitfarms will yield amid dynamic capital flows. Concerns about financial health and strategic decisions have culminated in bearish speculation, driving stock declines.

Conclusion

The downward trend marks a crucial juncture for Bitfarms. Traders, wary of sustained losses interwoven with strategic debt reliance, gingerly approach an uncertain outlook. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This sentiment resonates as opportunities for bounce-back exist, but fundamental shifts towards effective capital employment and coherent growth narratives remain pivotal. For those eyeing potential, strategic pivots and innovative strides must transform trader concerns into confidence, asserting Bitfarms as not only a technology player but a decisive market contender.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”