Bitfarms Ltd. Class Action Lawsuit - BITF
Case Summary
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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 J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Bitfarms class action lawsuit must be filed with the court no later than July 8, 2025.
CASE ALLEGATIONS: 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: (i) Bitfarms maintained deficient internal controls over financial reporting; (ii) 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; (iii) 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; (iv) these foregoing errors caused Bitfarms to misstate various items in several of Bitfarms’ previously issued financial statements; and (v) 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.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we recovered over $2.5 billion for investors in securities-related class action cases – more than the next five law firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig.