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Bit Digital (BTBT)
NASDAQ:BTBT
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Bit Digital
(NASDAQ:BTBT)
Rating:61Neutral
Price Target:
$2.50
▲(1.21%Upside)
Positive Factors
Market Position
Bit Digital's acquisition of a site near major metro areas enhances its market position with value in geographic location and AI compatibility.
Revenue Growth
Bit Digital's decisive pivot into high-performance computing showcased FY24 as a striking metamorphosis, pushing revenue higher by 141% to $108.1M.
Strategic Transformation
Bit Digital's transformation from a crypto miner to a high-performance computing host and cloud service provider highlights its strategic evolution.
Negative Factors
Crypto Balance Decline
Bit Digital's crypto balance fell to $80.1M from $161.8M due to the sale of $32M bitcoin and price compression.
Investment Risk
Investment in Bit Digital carries significant risk due to the speculative nature of cryptocurrencies and limitations in competing with larger operations.
Investor Perception
Despite Bit Digital's rapid pivot toward high-margin HPC infrastructure, it appears overlooked by investors as it is still unfairly lumped into the bitcoin mining category.
Bit Digital (BTBT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$494.52M
Dividend YieldN/A
Average Volume (3M)14.16M
Price to Earnings (P/E)8.8
Beta (1Y)2.00
Revenue Growth53.68%
EPS Growth-265.12%
CountryUS
Employees54
SectorFinancial
Sector Strength85
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.32
Shares Outstanding207,780,870
10 Day Avg. Volume16,824,350
30 Day Avg. Volume14,158,851
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.09
Price to Sales (P/S)0.00
P/FCF Ratio-3.90
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit4.78
Enterprise Value/Ebitda1.83
Forecast
1Y Price Target
$6.17Price Target Upside149.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Bit Digital Business Overview & Revenue Model
Company DescriptionBit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was incorporated in 2017 and is headquartered in New York, New York.
How the Company Makes MoneyBit Digital makes money primarily through the mining of Bitcoin. The company operates specialized data centers equipped with high-performance hardware that performs complex computational tasks required to validate and secure transactions on the Bitcoin network. In return for this service, Bit Digital is rewarded with newly minted Bitcoins and transaction fees. The company may also generate revenue through strategic partnerships with other firms in the cryptocurrency space, as well as through the sale or trading of the Bitcoin it mines. Factors such as the price of Bitcoin, mining difficulty, and electricity costs significantly impact Bit Digital's earnings.
Bit Digital Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 19.90%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance for Bit Digital, with significant growth in cloud services and strategic expansions in data centers. However, these positives are offset by a substantial decline in mining revenue, overall revenue decrease, and challenges in hardware reliability. The company's financial position remains strong with no debt, but the negative adjusted EBITDA and net loss signify financial hurdles.Q1-2025 Updates
Positive Updates
Cloud Services Revenue Growth
Cloud services revenue increased 84% year-over-year and 14% sequentially to $14.8 million, with gross margins expanding approximately 700 basis points sequentially to 59%.
Improved Mining Segment Margins
Despite a decline in mining revenue, mining operations remained gross margin positive with margins expanding approximately 500 basis points sequentially to 21%.
Expansion in Data Center and Cloud Business
The company is expanding its data center build-out and cloud services, with significant contracts and potential multi-year agreements in the pipeline.
Positive Financial Position
The company remains debt-free with a total liquidity of approximately $141 million.
Strategic Investments and Partnerships
The company is investing in proprietary software development and has secured new contracts, including an expansion with DNA Fund representing approximately $10.8 million of additional annualized revenue.
Negative Updates
Significant Decline in Mining Revenue
Mining revenue decreased 64% year-over-year and 26% sequentially, impacted by the 2024 halving event and fleet redeployment.
Overall Revenue Decline
Total revenue for the quarter was $25.1 million, a 17% decrease compared to the same quarter last year.
Adjusted EBITDA and Net Loss
Adjusted EBITDA was negative $44.5 million compared to a positive $58.5 million in the first quarter of 2024, and GAAP net loss per share was $0.32 compared to earnings of $0.43 per share in the first quarter of 2024.
Challenges with Hardware Reliability
The uptake through the on-demand distribution partnership with Shadeform was impacted by hardware reliability issues.
Delay in Montreal II Development
Development timelines for the Montreal II data center have shifted modestly, with initial capacity now expected to come online in early to mid-third quarter.
Company Guidance
During the Bit Digital First Quarter 2025 Earnings Conference Call, several key metrics and operational highlights were provided. The mining segment experienced a significant revenue decline, down 64% year-over-year and 26% sequentially, attributed to the 2024 halving event and strategic fleet redeployment. Despite this, mining margins improved by approximately 500 basis points to 21%. The company's active hash rate was approximately 1.5 exahash, with plans to increase to 2.5 exahash by June. Cloud Services revenue surged by 84% year-over-year and 14% sequentially, reaching $14.8 million, with gross margins expanding by 700 basis points to 59%. The company is engaged in discussions for several contracts with annualized revenue potential exceeding $100 million each. They are also focusing on data center expansion, including a new site in North Carolina and upcoming developments in Montreal. The company's total revenue for the quarter was $25.1 million, marking a 17% decrease from the previous year, largely due to reduced Bitcoin mining income. Despite the decrease, Bit Digital maintained a strong cash position, with $57.6 million in cash and cash equivalents, and remained debt-free.Bit Digital Financial Statement Overview
Summary
Bit Digital exhibits strong revenue growth and a solid equity base, but faces challenges with profitability and cash flow management. The company's reliance on financing activities to maintain liquidity highlights potential risks. While the income statement shows promise, the cash flow situation requires attention to ensure sustainable operations.Income Statement
Bit Digital has shown significant improvement in its revenue with a growth rate of over 140% from 2023 to 2024. The gross profit margin is strong at 100%, indicating no cost of goods sold. However, the company has faced volatility in its net income, swinging from a loss in 2023 to a profit in 2024. The negative EBITDA in recent years suggests challenges in core operational profitability.72
Positive
Balance Sheet
The balance sheet presents a robust equity position with an equity ratio of 86.1% in 2024, suggesting financial stability. The debt-to-equity ratio is low at 0.03, indicating minimal leverage. However, the return on equity has varied significantly, reflecting instability in generating returns for shareholders.65
Positive
Cash Flow
Cash flow analysis reveals negative free cash flow in 2024, a consistent trend over previous years, which could signal liquidity issues. The operating cash flow to net income ratio is negative, pointing to potential challenges in converting profits into cash flows. Nonetheless, financing activities have provided substantial cash inflows, bolstering cash reserves.58
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 102.87M | 163.76M | 44.92M | 32.30M | 96.08M | 21.07M | Gross Profit |
| 99.57M | 101.38M | 15.36M | 11.92M | 65.34M | 6.96M | EBIT |
| -71.86M | 27.56M | -16.62M | 26.73M | 18.12M | 315.16K | EBITDA |
| 45.99M | 59.87M | -12.31M | -8.96M | 26.18M | 4.45M | Net Income Common Stockholders |
| -79.49M | 28.31M | -13.89M | -105.30M | 4.86M | -1.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 64.75M | 98.16M | 64.75M | 33.32M | 42.40M | 6.70M | Total Assets |
| 189.33M | 538.25M | 189.33M | 100.42M | 179.92M | 39.89M | Total Debt |
| 6.22M | 13.81M | 6.22M | 0.00 | 0.00 | 336.72K | Net Debt |
| -11.96M | -81.40M | -10.64M | -32.69M | -42.40M | -68.41K | Total Liabilities |
| 36.62M | 74.77M | 36.62M | 10.49M | 8.27M | 1.89M | Stockholders Equity |
| 152.70M | 463.48M | 152.70M | 89.93M | 171.64M | 38.00M |
| Cash Flow | Free Cash Flow | ||||
| -133.21M | -106.99M | -65.55M | -27.83M | -70.10M | -7.92M | Operating Cash Flow |
| 25.28M | -12.99M | 1.11M | -8.50M | -23.26M | -3.42M | Investing Cash Flow |
| -213.51M | -149.02M | -69.16M | -18.61M | -40.93M | -2.05M | Financing Cash Flow |
| 213.58M | 242.86M | 52.22M | 18.71M | 106.19M | 5.25M |
Bit Digital Technical Analysis
Positive
2.47
Price Trends
2.13
Positive
2.52
Negative
3.09
Negative
Market Momentum
0.10
Negative
58.48
Neutral
34.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTBT, the sentiment is Positive. The current price of 2.47 is above the 20-day moving average (MA) of 2.31, above the 50-day MA of 2.13, and below the 200-day MA of 3.09, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 34.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BTBT.
Bit Digital Risk Analysis
Bit Digital disclosed 90 risk factors in its most recent earnings report. Bit Digital reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bit Digital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $575.77M | 10.66 | 56.54% | ― | ― | 96.50% | |
64 Neutral | $12.79B | 9.72 | 7.54% | 16971.00% | 12.07% | -7.53% | |
61 Neutral | $494.52M | 8.82 | -23.29% | ― | 53.68% | -265.12% | |
54 Neutral | $5.92M | ― | -27.53% | ― | -89.47% | -261.57% | |
54 Neutral | $1.09B | ― | -18.49% | ― | -0.65% | -808.88% | |
49 Neutral | $1.36B | ― | -56.12% | ― | 31.85% | -34.27% | |
49 Neutral | $5.05B | 9.58 | -10.61% | ― | 40.57% | -152.87% |
* Financial Sector Average
Performance Comparison
BTBT
Bit Digital
2.47
-0.33
-11.79%
WULF
TeraWulf Inc
3.78
1.27
50.60%
MARA
Marathon Digital Holdings
15.33
-5.19
-25.29%
NCPL
NetCapital
2.50
-5.13
-67.23%
CIFR
Cipher Mining
3.44
-0.41
-10.65%
FUFU
BitFuFu
3.54
-0.33
-8.53%
Bit Digital Corporate Events
M&A TransactionsBusiness Operations and Strategy
Bit Digital Completes $45M Acquisition in North Carolina
Positive
May 23, 2025
On May 20, 2025, Bit Digital‘s subsidiary, White Fiber, Inc., completed the acquisition of an industrial building in Madison, North Carolina, from Unifi Manufacturing Inc. This strategic move positions the company to attract HPC data center tenants and leverage tax incentives due to its location in a region favorable for AI workloads. The acquisition, valued at $45 million, involves a collaboration with Duke Energy to secure substantial power supply, crucial for data center operations. The agreement includes conditions for electric service agreements and potential payments to Unifi Manufacturing Inc. based on power supply achievements.
The most recent analyst rating on (BTBT) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Bit Digital stock, see the BTBT Stock Forecast page.
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Bit Digital Holds Annual Shareholder Meeting on May 20
Neutral
May 23, 2025
On May 20, 2025, Bit Digital, Inc. conducted its Annual Meeting of Shareholders, where key decisions were made, including the election of directors, approval of the 2025 Omnibus Equity Incentive Plan, and ratification of Audit Alliance, LLP as auditors for the fiscal year. The meeting also addressed executive compensation and its voting frequency, reflecting significant shareholder engagement and support for the company’s strategic initiatives.
The most recent analyst rating on (BTBT) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Bit Digital stock, see the BTBT Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.