In This Article:
Key Insights
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The considerable ownership by retail investors in Bitfarms indicates that they collectively have a greater say in management and business strategy
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39% of the business is held by the top 25 shareholders
If you want to know who really controls Bitfarms Ltd. (TSE:BITF), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While institutions who own 22% came under pressure after market cap dropped to CA$1.2b last week,retail investors took the most losses.
Let's take a closer look to see what the different types of shareholders can tell us about Bitfarms.
View our latest analysis for Bitfarms
What Does The Institutional Ownership Tell Us About Bitfarms?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Bitfarms. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Bitfarms' historic earnings and revenue below, but keep in mind there's always more to the story.
Bitfarms is not owned by hedge funds. Our data shows that Riot Platforms, Inc. is the largest shareholder with 20% of shares outstanding. With 3.5% and 2.0% of the shares outstanding respectively, Invesco Capital Management LLC and Heights Capital Management, Inc. are the second and third largest shareholders.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Bitfarms
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.