Bitfarms .(US:BITF) The Motley Fool·2025-12-03 09:45Core Viewpoint - Thames Capital Management is pursuing a high-risk investment strategy by significantly increasing its stakes in cryptocurrency mining companies that are transitioning to data center operations, indicating a belief in the future demand for data centers driven by technologies like artificial intelligence [1][9]. Investment Strategy - Thames Capital Management has acquired over 7 million shares of Bitfarms and initiated positions in several other crypto mining companies, including Cipher Mining, Bitmine Immersion Technologies, Iren, Hut 8, and Riot Platforms, reflecting a focused investment approach in this specialized sector [2][4]. - The total market value of Thames' stakes in these seven companies reached nearly $128 million, constituting more than 18% of its equity portfolio by the end of the third quarter [5]. Market Context - The U.S. Department of Energy projects a significant increase in electricity consumption by data centers, expected to rise from 176 terawatt hours in 2023 to between 325 and 580 terawatt hours by 2028, primarily due to the demands of AI technology [9]. - All seven of Thames' holdings in the crypto mining sector have outperformed the S&P 500 index this year, with Iren achieving a remarkable 352% gain, indicating strong market interest and competition in this niche [11]. Company-Specific Insights - Bitfarms is distinct among Thames' investments as it plans to fully exit the crypto mining business by the end of 2027, focusing instead on data centers and high-performance computing, positioning itself as a leading player in this transition [13]. - Despite the potential for growth, Bitfarms currently derives 87% of its revenue from crypto mining, raising concerns about its ability to compete effectively in the data center and HPC markets [15].