A securities class action has been filed in the USDC – E.D.N.Y. against Bitfarms Ltd. (BITF) (“Bitfarms” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Bitfarms securities between March 21, 2023, and December 9, 2024, both dates inclusive (the “Class Period.
Bitfarms operates integrated Bitcoin (also referred to as “BTC”) data centers in Canada, the U.S., Paraguay, and Argentina. The Company primarily owns and operates data centers housing computers (referred to as “miners”) designed for the purpose of validating transactions on the Bitcoin Blockchain (referred to as “mining”). Once BTC are mined, Bitfarms keeps them as digital assets or exchanges them for U.S. dollars through established cryptocurrency trading platforms. According to the Company, Bitfarms’ financing strategy involves, among other things, strategically selling its BTC assets.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
(1) Bitfarms maintained deficient internal controls over financial reporting;
(2) as a result, the Company incorrectly categorized proceeds derived from the sale of digital assets as a cash flow from operating activities rather than as a cash flow from investing activities;
(3) in addition, the Company overstated the extent to which it had remediated, and/or its ability to remediate, the material weakness in its internal controls over financial reporting related to its classification of the 2021 Warrants;
(4) the foregoing errors caused Bitfarms to misstate various items in several of the Company’s previously issued financial statements;
(5) as a result, these financial statements were inaccurate and would likely need to be restated; and
(6) as a result, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.
Bitfarms’ stock price fell $0.13 per share to close at $2.01 per share on December 10, 2024.
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