Is Bitfarms Stock Halal?
Table of Contents
How much of Bitfarms’ revenue comes from haram?
Bitfarms earns its revenue from mining cryptocurrencies.
Practical Islamic Finance concludes:
None of Bitfarms’ revenue comes from anything inherently haram.
Does Bitfarms rely on interest to operate?
| Year-to-Date for period ended 3/31/2021 | Fiscal year ended 12/31/2020 | Fiscal year ended 12/31/2019 | |
|---|---|---|---|
| Interest Income | – | – | – |
| Total Revenue | $28,432 | $34,703 | $32,421 |
| Interest Expense | $898 | $6,104 | $3,286 |
| Total Expenses | $11,939 | $40,080 | $31,276 |
| Interest Income / Revenue | – | – | – |
| Interest Expense / Total Expense | 7.52% | 15.23% | 10.51% |
Practical Islamic Finance concludes:
From the consistently elevated levels of Interest Expense / Total Expense, Riba is relied upon in Bitfarms’ operations.
What is Bitfarms’ Environmental, Social, and Governance (ESG) impact?
Environment
According to Bitfarms, the company uses more than 99% hydroelectric power to power its cryptocurrency mining farms.
Social
No notable social highlights.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Bitfarms has a net positive ESG impact.
Comfort Rating
From Bitfarms’ business, financial, and ESG reviews, Practical Islamic Finance rates Bitfarms stock as:
Uncomfortable to invest in from a Halal perspective.
Justification for Our Rating
Bitfarms’ consistent elevated use of interest to run its operations suggests a systemic reliance on interest which causes Practical Islamic Finance to be uncomfortable investing in it.
Sources
Renewable energy-focused bitcoin mining firm Bitfarms slumps 8% in Nasdaq debut