Bitfarms: BITF's Reduced Mining Efficiency And Our Updated Valuation Framework

Our investment thesis was previously built on Bitfarms' green operation, the proposed 5x price target by 2022, and a $100k Bitcoin by 2025, but there are fundamental changes.BITF deviated from its green direction to power its 55% of its operation with natural gas to reduce mining cost, this is a fundamental change in our thesis.Our BITF valuation framework was updated to consider hash rate, the life span of mining rigs, and cost savings from BITF's new operation in Argentina.Based on our assumptions, adjustments made to the valuation framework, and the 8.5%/75% increase in BITF mining cost, BITF is 17% overvalued.Due to additional exposure to operational/business risks given by the increase in BITF's mining cost, we've liquidated our BITF holdings in favor of Bitcoin.