Bitfarms, Ltd. (BITF) Securities Class Action Lawsuit Update [June 8, 2025]

Introduction  

A securities fraud class action lawsuit has been filed against Bitfarms Ltd. on behalf of investors who purchased Bitfarms stock between March 21, 2023, and December 9, 2024 (the “Class Period”). The Bitfarms lawsuit alleges that Bitfarms and key executives engaged in securities fraud, misrepresenting financial reporting, accounting controls, and operational performance. The complaint asserts that Bitfarms maintained deficient internal controls over financial reporting and falsely reassured investors of its ability to address those problems by 2024 – when it really couldn’t.  This failure came to light over proceeds from Bitcoin sales, which were improperly logged in the Company’s accounting books, making Bitfarms’ financial statements inaccurate.  

Bitfarms, Ltd. (BITF) Lawsuit Case Details  

Olympio v. Bitfarms Ltd., et al  

Case No.: 1-25-cv-02630 

U.S. District Court, Eastern District of New York  

Filed on May 9, 2025 

Bitfarms, Ltd. (BITF) Company Profile  

Bitfarms Ltd. is a Bitcoin mining company.  It operates data centers in Canada, the U.S., Paraguay, and Argentina. The company manages high-powered BTC mining facilities, earning Bitcoin through blockchain validation and selling mined BTC on major cryptocurrency exchanges. Bitfarms' revenue model relies on holding BTC as assets or strategically liquidating them for cash flow.   

Bitfarms, Ltd.  (BITF) Lawsuit Class Period:  

March 21, 2023 to December 9, 2024, inclusive.  

Investors who purchased Bitfarm securities during the class period might be eligible to join the Bitfarms, Ltd. class action lawsuit. 

Allegations in the Bitfarms, Ltd. (BITF) Lawsuit

The complaint alleges Bitfarms improperly categorizing digital asset sales and made crucial accounting mistakes related to those sales.  This botched accounting resulted in Bitfarms making a number of false and materially misleading public statements concerning its finances and  its ability to address major accounting weaknesses within the Company.  

In its 2022 Annual Report filed on March 21, 2023, Bitfarms claimed it had effective internal controls over financial reporting.  However, the lawsuit says that statement mislead investors because even by this point, Bitfarms should have known there were issues.   

By March 2024, Bitfarms acknowledged the material weakness in its internal controls (due to another accounting problem). Bitfarms assured investors of its 2024 remediation plan.  

Meanwhile, unbeknownst to investors, the Company continued to make a crucial accounting error: it incorrectly categorized Bitcoin sales as operating cash flow, instead of investing cash flow, and gave the appearance of stronger operating cash flow than was accurate. 

The lawsuit filed against Bitfarms and some of its executives alleges the Company violated federal securities laws, such as the Securities Exchange Act, by making materially false and misleading statements during the class period.  Plaintiffs allege Bitfarms’ financial misstatements artificially inflated stock value, harming investors who purchased Bitfarms shares during the class period at artificially high prices.  

The Truth Emerges 

On December 9, 2024, Bitfarms issued a press release stating that its 2022 and 2023 financial statements contained material accounting errors and needed to be restated. The company adjusted its financial reports to correct the Bitcoin sales misclassification and other errors. 

Market Reaction 

Following these disclosures, Bitfarms stock dropped 6.07 percent, closing at 2.01 per share, on December 10, 2024. 

 Next Steps  

• Submissions for lead plaintiff are due July 8, 2025 

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.    

• The Court will then consider motion for class certification.     

• The Court will later consider a Motion to Dismiss.    

To learn if you are eligible for recovery under the Bitfarms securities class action lawsuit, visit the case submission page here.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.