Bitfarms Slides On $300 Million Offering After Rallying To Near 4-Year High, Retail Buzz Stays Elevated

Bitfarms (BITF) ranked among the top trending tickers on Stocktwits in pre-market trade on Thursday after shares fell more than 5% before the opening bell. 

The decline followed a sharp rally on Wednesday, when Bitfarm’s stock hit a nearly four-year high of $6.60 during intraday trade. The pull back followed the Bitcoin miner announcing a $300 million offering of convertible senior notes due 2031, after the market closed on Wednesday. Bitfarms stated that it plans to utilize the proceeds from the sale for general corporate purposes. The company also intends to grant initial purchasers an option to buy up to an additional $60 million in notes, subject to certain conditions.

Despite the dip in price, retail sentiment around BITF’s shares remained in ‘extremely bullish’ territory amid ‘extremely high’ levels of chatter over the past day. Platform data showed that the number of traders following the stock rose 1.1% in the past 24 hours, while message volume climbed by 2%. Over the past week, retail chatter about Bitfarms has more than doubled, increasing by about 200% for the month.

One retail trader predicted that the stock would continue to rally over the next two and a half months. 

Another called Bitfarm’s’ $300 million offering a “bold bet.”

Retail buzz around the company has been building since it announced its strategic shift from solely being a Bitcoin (BTC) miner to a company that also develops high-performance computing (HPC) infrastructure and offers artificial intelligence (AI) data center services back in January.

Like many other crypto miners in the sector, Bitfarms is repurposing its energy-rich mining facilities to provide compute resources and data center capacity for enterprise clients and their hyperscale workloads. 

Meanwhile, the cryptocurrency market was in the red, falling around 1% in the last 24 hours to a market capitalization of $3.8 trillion. Bitcoin’s price also fell around 1%, trading at $111,300 at the time of writing. On Stocktwits, retail sentiment around the leading cryptocurrency remained in ‘bullish’ territory amid ‘high’ levels of chatter over the past day.

Read also: Why Is Rocket Lab Stock Gaining Premarket Today?

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