Bitfarms Class Action Lawsuit: A Meticulous Step-by-step Behind the Scenes Case Study of Bitfarms Ltd. [2025]

Monday, 20 May 2025 03:15 p.m.

Brentwood, TN

Topic: Investor Relations

Introduction to the Bitfarms Class Action Lawsuit 

The Bitfarms class action lawsuit seeks to represent purchasers or acquirers of Bitfarms Ltd. (NASDAQ: BITF) securities between March 21, 2023 and December 9, 2024, inclusive (the “Class Period”).  Captioned Olympio v. Bitfarms Ltd., No. 25-cv-02630 (E.D.N.Y.), the Bitfarms class action lawsuit charges Bitfarms and certain of Bitfarms’ top current and former executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Bitfarms class action lawsuit, please provide your information in the form on this page.  You can also contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles by calling  8554/846 -6529or via e-mail at tmiles@timmileslaw.com.

Lead plaintiff motions for the Bitfarms class action lawsuit must be filed with the court no later than July 8, 2025.

Background of Bitfarms Ltd.

Bitfarms Ltd. is a prominent player in the cryptocurrency sector, primarily known for its integrated bitcoin data centers. The company has been involved in various financial activities, including raising capital through the issuance of warrants. However, the recent class action lawsuit has brought to light serious concerns regarding its financial reporting practices.

Company Overview

Bitfarms, established in 2017, stands as a prominent global Bitcoin mining enterprise publicly traded on both NASDAQ and TSX under the ticker symbol BITF. The company has distinguished itself through its vertically integrated operational model, encompassing comprehensive mining farms with sophisticated in-house management systems. Bitfarms’ excellence is further demonstrated through its company-owned electrical engineering capabilities, installation services, and strategically positioned technical repair centers. The organization’s cutting-edge data analytics platform consistently delivers industry-leading operational performance and exceptional uptime metrics. Currently, Bitfarms maintains a robust international presence with 11 mining facilities strategically distributed across four countries: Canada, the United States, Paraguay, and Argentina. The company’s operations are predominantly powered by environmentally conscious hydroelectric energy sources, secured through long-term power contracts. This approach underscores Bitfarms’ steadfast commitment to sustainable practices and efficient utilization of local energy infrastructure, often tapping into underutilized resources.

Allegations in the Bitfarms Class Action Lawsuit 

Bitfarms operates integrated bitcoin data centers.  In 2021, Bitfarms began to raise capital through, among other means, the issuance of warrants (the “2021 Warrants”), the complaint alleges.

The Bitfarms class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:

• Bitfarms maintained deficient internal controls over financial reporting;
• As a result, Bitfarms 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;
• In addition, Bitfarms 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;
• These foregoing errors caused Bitfarms to misstate various items in several of Bitfarms’ previously issued financial statements; and
• Consequently, these financial statements were inaccurate and would likely need to be restated.

The Bitfarms class action lawsuit further alleges that on December 9, 2024 Bitfarms issued a press release announcing that its consolidated financial statements for the fiscal years 2022 and 2023 contained a material error related to the classification of proceeds from digital asset sales and would need to be restated.  Specifically, Bitfarms revealed that “Bitfarms previously categorized proceeds derived from the sale of digital assets as a cash flow from operating activities. In conjunction with the SEC review, it was determined that proceeds from the sale of digital assets should be classified as cash flow from investing activities,” the complaint alleges.  The Bitfarms class action lawsuit additionally alleges that Bitfarms stated that it was also restating its financials “to adjust for an error in the accounting for the redemption of warrants in 2023.”  On this news, Bitfarms’ stock price fell by more than 6%, according to the complaint.

Impact on Investors

When the truth about Bitfarms’ financial practices came to light, the company’s stock price experienced a significant decline, resulting in substantial losses for investors. Those who purchased shares during the class period may be eligible to participate in the lawsuit and seek compensation for their losses.

Seeking Lead Plaintiff Status

Investors who suffered significant losses, particularly those exceeding $50,000, may wish to serve as lead plaintiffs in the lawsuit. To do so, they must file a motion with the court by the specified deadline, which is currently set for July 8, 2025. If you are interested in seeking to be lead plaintiff, or if you just have questions about you rights as a shareholder, contact Timothy L. Miles, no charge, would be happy to answerer any questions you may have.  (855) 846-6529 or tmiles@timmileslaw.com.

How to Participate in the Bitfarms Class Action Lawsuit 

To participate in the lawsuit, investors can contact the attorneys representing the class action. They can provide necessary information regarding their investment in Bitfarms and the losses incurred. Legal representation is crucial for navigating the complexities of the lawsuit.  However, if you do not want to move to be lead plaintiff but are a member of the class, there is nothing you need to do at this point.

Investor Rights and Protections

Investors have specific rights and protections under federal securities laws. Understanding these rights is crucial for those affected by the Bitfarms class action lawsuit.

Right to Accurate Information

Investors are entitled to receive accurate and truthful information regarding the companies in which they invest. Misleading statements or omissions can lead to legal action against the company and its executives.

Right to Seek Compensation

Affected investors have the right to seek compensation for losses incurred due to fraudulent practices. The Bitfarms class action lawsuit provides a mechanism for investors to collectively pursue their claims.

The Importance of Timely Action

For investors considering participation in the Bitfarms class action lawsuit, timely action is essential. Delays in filing claims or seeking legal representation could jeopardize their ability to recover losses.

Deadlines to Remember

• Lead Plaintiff Motion Deadline: July 8, 2025
• Contacting Legal Representation: Investors should reach out to attorneys as soon as possible to discuss their options.

Staying Informed

Investors should stay informed about developments in the lawsuit and any changes in deadlines or procedures. Regular communication with legal representatives can help ensure that they are aware of their rights and options. If you are interested in seeking to be lead plaintiff, or if you just have questions about you rights as a shareholder, contact Timothy L. Miles, no charge, would be happy to answerer any questions you may have.  (855) 846-6529 or tmiles@timmileslaw.com.

Conclusion: Navigating the Bitfarms Class Action Lawsuit

The Bitfarms class action lawsuit represents a critical opportunity for investors who have suffered losses due to alleged securities fraud. By understanding the allegations, the legal process, and their rights, affected investors can take proactive steps to seek justice and compensation.