BIT Mining (BTCM) AI Stock Analysis

• Market Cap: $31.11M
• Dividend Yield: N/A
• Average Volume (3M): 60.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 56
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 15,953,999
• 10 Day Avg. Volume: 65,620
• 30 Day Avg. Volume: 60,177
• PEG Ratio: -0.07
• Price to Book (P/B): 33.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ―

BIT Mining's overall stock score reflects substantial financial and operational challenges. The company is struggling with declining revenues and persistent losses, impacting its financial performance. Technical analysis indicates a lack of positive momentum, compounded by a negative valuation profile due to ongoing losses and no dividend yield. These factors outweigh any positive aspects, such as a stable capital structure.

Positive Factors

Data Center Revenue

Data center revenue rose to $3.8M from $1.7M, reflecting increased utilization to 90% from 75%, as existing clients expanded operations.

Operational Performance

BIT Mining's main facility in Akron, Ohio, operated at approximately 85-90% of its 82.5MW capacity, increasing hosting revenue significantly.

Regulatory Compliance

BIT Mining regained compliance with NYSE listing requirements, operating with a clean regulatory slate.

Negative Factors

Ethiopia Expansion Uncertainty

Clear, demonstrated evidence of execution of the Ethiopia expansion is required, noting that not necessarily transparent moving parts remain.

Sales Estimate Revision

The FY24 sales estimate is lowered to $36.9M from the previous $69.2M, perhaps conservatively, factoring only a modest contribution from the Ethiopian site until greater operational clarity emerges.

BIT Mining Business Overview & Revenue Model

Company Description

BIT Mining Limited operates as a cryptocurrency mining company. The company operates through three segments: Mining Pool, Data Center, and Cryptocurrency Mining. It operates a cryptocurrency mining data center in Ohio with power capacity of 150 megawatts; and mining pool business, including the domain name and the cryptocurrency wallet of BTC.com, as well as purchases and deploys bitcoin mining machines. The company was formerly known as 500.com Limited and changed its name to BIT Mining Limited in April 2021. BIT Mining Limited was founded in 2001 and is headquartered in Hong Kong.

How the Company Makes Money

BIT Mining makes money primarily through the mining of cryptocurrencies, with a significant focus on Bitcoin. The company generates revenue by verifying cryptocurrency transactions and adding them to the blockchain, for which it earns transaction fees and new bitcoins as rewards. BIT Mining operates large-scale mining data centers, which are crucial to its operations, as they house the necessary hardware to perform mining activities. The company's revenue is influenced by factors such as the market price of cryptocurrencies, mining difficulty, and operational efficiency. Additionally, BIT Mining may engage in strategic partnerships or investments in other blockchain-related projects to diversify its revenue streams.

BIT Mining Financial Statement Overview

Summary

BIT Mining is facing significant financial challenges with declining revenues and persistent losses impacting profitability. The balance sheet holds some strength due to low leverage, but cash flow constraints raise concerns about sustainability. The firm must address operational inefficiencies to stabilize its financial health.

Income Statement

BIT Mining shows a concerning trajectory with declining total revenue from $1.33 billion in 2021 to $32.9 million in 2024. The net profit margin is negative, reflecting consistent losses. EBIT and EBITDA margins are also negative, indicating operational inefficiencies. While the revenue growth rate is positive from 2023 to 2024, the overall financial health is strained by substantial losses.

Balance Sheet

The company's balance sheet highlights a stable equity position with a debt-to-equity ratio of 0.04 in 2024, reflecting low leverage. The equity ratio is also strong at 68.9%, suggesting a solid capital structure. However, the decline in cash reserves over recent years and persistent losses could pressure liquidity.

Cash Flow

BIT Mining's cash flow situation is fragile, with zero operating and free cash flows reported in 2024. The operating cash flow to net income ratio is unfavorable, indicating poor cash generation relative to losses. Historical negative free cash flows underscore potential liquidity risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
32.92M	43.10M	650.23M	1.33B	3.34M
	Gross Profit
2.98M	3.05M	-19.49M	1.61M	771.59K
	EBIT
-10.75M	-25.19M	-182.86M	-40.91M	―
	EBITDA
-7.01M	-12.82M	590.00K	300.00K	-15.60M
	Net Income Common Stockholders
-6.62M	-28.71M	-181.20M	-61.51M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.81M	3.24M	7.81M	17.67M	47.25M
	Total Assets
86.33M	72.60M	74.48M	301.81M	72.01M
	Total Debt
2.55M	4.22M	4.20M	7.15M	1.46M
	Net Debt
740.00K	975.00K	-1.24M	-10.52M	-45.79M
	Total Liabilities
19.55M	47.46M	33.68M	92.69M	12.24M
	Stockholders Equity
56.89M	25.13M	40.80M	183.97M	61.80M
Cash Flow		Free Cash Flow
0.00	-44.08M	-77.34M	-90.87M	―
	Operating Cash Flow
-32.74M	-28.41M	-63.56M	-34.27M	―
	Investing Cash Flow
0.00	26.16M	24.39M	-75.41M	3.32M
	Financing Cash Flow
0.00	0.00	29.77M	77.67M	―

BIT Mining Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.95
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTCM, the sentiment is Negative. The current price of 1.95 is below the 20-day moving average (MA) of 2.01, above the 50-day MA of 1.85, and below the 200-day MA of 2.31, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 11.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BTCM.

BIT Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMM	68 Neutral	$54.61M	0.42	36.45%	―	53.82%	68.04%
Sector *	64 Neutral	€10.78B	20.28	8.24%	1.79%	4.86%	-9.14%
DTST	56 Neutral	$23.92M	129.84	0.90%	―	-4.17%	-72.98%
SAIH	50 Neutral	$79.92M	―	-36.39%	―	―	―
WYY	48 Neutral	$29.93M	―	-14.76%	―	24.03%	49.96%
BTCM	45 Neutral	$31.11M	―	-114.24%	―	―	―
TDTH	42 Neutral	$16.84M	―		―	―	―