Bitfarms Trading Below Historical Peak: Why One Major Fund is Doubling Down on the Bitcoin Miner

The Setup

When Aurelius Capital Management filed its latest quarterly disclosure with the Securities and Exchange Commission on November 13, the move sent a clear signal about where institutional conviction is flowing in the crypto mining sector. The New York-based fund deployed $19 million into a single position—Bitfarms (NASDAQ: BITF)—acquiring 6.7 million shares that now dominate its investment portfolio.

Portfolio Concentration Tells a Story

The numbers speak volumes. Bitfarms now represents 34.4% of Aurelius Capital Management’s 13F reportable assets under management, making it the fund’s largest U.S. equity holding by a significant margin. To put this in perspective, the fund’s next four largest positions combined—including positions in CORZ ($8.4 million), CIFR ($6.3 million), WULF ($5.1 million), and RIOT ($4.5 million)—represent less total capital than this single Bitfarms bet.

This concentration level isn’t accidental. It reflects a deliberate thesis: the fund believes the infrastructure and balance sheet advantages matter more than near-term price swings in the digital asset mining space.

Why Now? The Valuation Argument

As of Friday’s close, Bitfarms shares traded at $2.53—up 39% over the past year while still trading significantly below its peak. This discount creates the opportunity backdrop. While the broader S&P 500 gained 16.5% annually, BITF has outperformed on a percentage basis despite remaining depressed relative to historical highs.

The current valuation implies the market is pricing in significant structural challenges, yet the fund’s oversized allocation suggests management sees a disconnect between the price and the company’s evolving fundamentals.

The Business Transformation Underway

Bitfarms isn’t your typical pure-play Bitcoin miner anymore. The Toronto-based company operates vertically integrated mining farms across North America, but it’s quietly pivoting toward something broader.

Recent Performance Metrics:

• Q3 revenue from continuing operations: $69 million (+156% year-over-year)
• Adjusted EBITDA: $20 million (28% margin)
• Total liquidity (cash + Bitcoin): ~$814 million as of mid-November
• Market capitalization: $1.5 billion

Net losses persist on the income statement, but the balance sheet has transformed materially. The company closed a $588 million convertible note offering, giving management dry powder to execute a strategic shift.

The Real Play: Beyond Mining

Here’s where the thesis gets interesting. Rather than remain locked in pure Bitcoin transaction validation, Bitfarms is redeploying capital toward high-performance computing and AI infrastructure. Management is converting its Washington operations for GPU-intensive workloads and advancing multiple North American projects designed for next-generation computing demands.

This transition from commodity mining toward digital infrastructure could reshape the entire value proposition. If executed successfully, the current discount—where shares trade well below their historical peak—could compress significantly as the market reprices the company’s optionality.

The Bottom Line

For institutional investors like Aurelius Capital Management, this 34.4% portfolio weight isn’t a tactical trade—it’s a core conviction bet on three factors: scale advantages, power access in jurisdictions that matter, and balance sheet flexibility to pivot toward higher-margin infrastructure opportunities.

The market may not yet be pricing in the full value of Bitfarms’ transformation, particularly given the depressed valuation relative to the peak. Whether management successfully executes this evolution will determine whether this concentrated bet becomes prescient or costly.