12 Best Long-Term Penny Stocks to Buy According to Hedge Funds

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6. Bitfarms Ltd. (NASDAQ:BITF)

Stock Price: $1.49

5-Year Sales Growth: 47.13%

Number of Hedge Fund Holders: 14

Bitfarms Ltd. (NASDAQ:BITF) is a Canadian company that specializes in bitcoin mining. It operates large facilities filled with specialized computers (called miners) that work around the clock to solve complex mathematical problems. The company has 11 operational data centers located in four countries, including Canada, the United States, Paraguay, and Argentina. It generates revenue by selling the computational power generated by miners to mining pools, where they earn Bitcoin based on their contribution to the pool’s total output.

Over the past year, Bitfarms Ltd. (NASDAQ:BITF) has undergone significant changes and upgrades to enhance its Bitcoin mining operations. By the end of its fiscal third quarter of 2024, it had upgraded 10 existing data centers and added 3 new ones. They have replaced over 50,000 older miners with about 46,000 new, more efficient miners. The company’s operational hash rate has surged by 83%, reaching 11.9 exahash per second (EH/s), which is a measure of mining power.

Moreover, in August the company announced the acquisition of Stronghold Digital Mining, marking a significant move in the bitcoin mining sector. This acquisition includes two power facilities in Pennsylvania, which will add over 300 MW of power capacity to their operations. During the fiscal third quarter of 2024, Bitfarms Ltd. (NASDAQ:BITF) reported revenue of $45 million, representing an 8% increase quarter-over-quarter and a 30% increase year-over-year. It is one of the best long-term penny stocks to buy according to hedge funds.

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