06/24/2025 | Press release | Distributed by Public on 06/24/2025 12:18
It looked like Bitfarms had its crypto books in order. But behind the scenes, the numbers were breaking down. Once the Company admitted to investors it needed to restate years of financial reporting because of major internal accounting weaknesses, investors knew it was time to press delete on Bitfarms. Shareholders dumped their shares and Bitfarms stock lost 6%. Now, investors are fighting back with a class action.
From March 2023 through most of 2024, Bitfarms presented itself as a company on solid footing. They said their internal controls were effective. Investors were told the company was handling its crypto transactions cleanly, with no red flags.
Behind the scenes, Bitfarms botched its accounting and seriously misclassified how it reported Bitcoin sales on its books. This error puffed up key metrics of Bitfarms' business performance.
But in December 2024, investors learned the truth behind the numbers. Bitfarms dropped a press release saying it would have to restate its financials for most of 2023 and 2024.
Within a day, investors ditched their shares and Bitfarms stock dropped. Now, more investors are joining the lawsuit.