Bitfarms: Despite Pessimistic Outlook, Trading Well Below Its NAV

SummaryBITF's 2022Q2 positive OCF isn't a big deal, rather, its 2022Q2 OCF is actually negative, while BITF's 2021 OCF was positive all along.Some might argue depreciation cost (55% of BITF's cost of sales) isn't a real cash cost and can be ignored; we beg to differ.No Bitcoin mining companies on our watchlist are expected to be gross profit positive in the coming Q3 quarter, including BITF.Despite the pessimistic outlook, BITF is trading well below its net asset value.What it'll take for us to get invested is BITF trading below a $137mil market cap.IntroductionLet's recollect our journey so far. In June 2021, we first propose a 5x upside potential for BITF on the basis that its all-in business cost per BTC was around the $20,000 level and was lagging the overall crypto market. We entered our positions at around $3.25 per share. 5 months later, BITF finally caught wind and spiked up to as high as $9.36. As BITF was approaching the $9.00 level, we updated our action plan to sell call options. We eventually sold out all of our BITF positions in January 2022 as we issued warnings against investing in Bitcoin (BTC-USD) mining companies amidst a Bitcoin bear market.Since then, we're long Bitcoin with 33% of allocated capital deployed at $30,000 Bitcoin, another 33% at $20,000 Bitcoin, and the remaining 33% at $10,000 Bitcoin. These actions align with the 5 sequences of events in a Bitcoin halving cycle. Right now, we're still waiti...