Bit Digital (NASDAQ:BTBT) shares surged over 8% in the early session today after the crypto miner announced plans to double the size of its operating fleet in Bitcoin (BTC-USD) mining during 2024.
Shares of crypto-focused names have been on a tear over the past year as the rally in the broader crypto space continues unabated. While the price of Bitcoin has soared by nearly 156% over the past year, Bit Digital has put on an even more spectacular gain of nearly 675% during this period.
Further, the company increased its BTC production by 24% month-over-month to 142.7 in November. It had an active hash rate of 2.25 EH/s and held 551.8 BTC and 16,064.8 ETH (ETH-USD). While crypto prices continue to balloon, crypto miners are focusing on increasing their fleet size and ramping up output.
Last week, Bit Digital received the first tranche of AI servers fitted with NVIDIA HGX H100 GPUs. The company has received 89 AI servers so far and expects to receive 103 additional servers, which are to be deployed at its data center in Iceland.
Bit Digital is not alone in the crypto gold rush. Last week, HIVE Digital (NASDAQ:HIVE) (TSE:HIVE) announced the purchase of 7,000 new Bitmain S21 Antminer units. The company has purchased nearly 17,000 Antminer units and plans to boost its inventory fleet to 8 Exa hash. HIVE held nearly 1,627 BTC at the end of November.
Is BTBT Stock a Good Buy?
H.C. Wainwright’s Kevin Dede, the lone analyst tracking Bit Digital, has reiterated a Buy rating on the stock. Citing BTBT’s “Consistency and profitability in HPC-related cash flow,” the analyst has raised the price target on the stock to $5 from $4. This points to a further potential upside of 19% in BTBT stock.
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