BIT Mining (BTCM) AI Stock Analysis

• Market Cap: $47.06M
• Dividend Yield: N/A
• Average Volume (3M): 780.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 56
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.01
• Shares Outstanding: 17,840,430
• 10 Day Avg. Volume: 450,890
• 30 Day Avg. Volume: 780,208
• PEG Ratio: -0.07
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.90
• P/FCF Ratio: -0.87
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: -0.93
• Enterprise Value/Ebitda: -0.77
• 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

Stablecoin Launch

The launch of Dolai, a stablecoin, signifies a strategic expansion into blockchain finance, potentially diversifying revenue and enhancing market position.

Rebranding to Solai

Rebranding to Solai aligns the company with the Solana ecosystem, indicating a strategic pivot that could open new growth avenues and partnerships.

Low Leverage

A low debt-to-equity ratio indicates a strong capital structure, providing financial stability and flexibility for future investments or downturns.

Negative Factors

Declining Revenues

Significant revenue decline reflects operational challenges and market pressures, threatening long-term profitability and sustainability.

Cash Flow Constraints

Lack of cash flow generation limits the company's ability to fund operations and invest in growth, posing liquidity risks and financial strain.

Persistent Losses

Ongoing losses indicate operational inefficiencies and financial instability, which could hinder the company's ability to achieve long-term growth.

BIT Mining Business Overview & Revenue Model

Company Description

BIT Mining Limited (BTCM) is a blockchain technology company focused on cryptocurrency mining. Primarily engaged in the mining of Bitcoin, the company operates data centers to support its mining operations. BIT Mining leverages advanced technology to optimize mining performance and efficiency, aiming to be a leader in the digital currency space. The company also explores new opportunities in blockchain technology and cryptocurrency-related services.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.51M	32.92M	43.10M	57.02M	1.33B	2.17M
Gross Profit	-42.86M	2.98M	3.05M	-5.76M	1.61M	151.00K
EBITDA	-51.47M	6.21M	-12.82M	-44.44M	-17.56M	-15.60M
Net Income	-126.50M	-6.62M	-28.71M	-155.41M	-62.40M	-32.41M
Balance Sheet
Total Assets	69.09M	86.33M	72.60M	74.48M	294.23M	72.01M
Cash, Cash Equivalents and Short-Term Investments	1.23M	1.81M	3.24M	7.81M	17.67M	47.25M
Total Debt	1.81M	2.55M	4.22M	4.20M	6.78M	1.46M
Total Liabilities	15.28M	19.55M	47.46M	33.68M	92.69M	12.24M
Stockholders Equity	43.84M	56.89M	25.13M	53.13M	183.97M	61.80M
Cash Flow
Free Cash Flow	-21.77M	-33.92M	-44.08M	-77.34M	-90.87M	-10.64M
Operating Cash Flow	-20.60M	-32.74M	-28.41M	-63.56M	-34.27M	-9.81M
Investing Cash Flow	17.44M	28.85M	26.16M	24.39M	-75.41M	3.33M
Financing Cash Flow	0.00	2.37M	0.00	29.77M	77.67M	4.00K

BIT Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTCM, the sentiment is Positive. The current price of 3.09 is above the 20-day moving average (MA) of 2.80, above the 50-day MA of 2.85, and above the 200-day MA of 2.41, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 67.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BTCM.

BIT Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
USIO	61 Neutral	$37.36M	13.45	16.71%	―	4.44%	―
DTST	58 Neutral	$29.49M	180.23	-1.42%	―	0.53%	-233.01%
WYY	55 Neutral	$55.04M	―	-15.98%	―	16.25%	41.38%
CSPI	50 Neutral	$113.70M	40,175.00	-3.33%	1.06%	-0.37%	-161.02%
BTCM	45 Neutral	$47.06M	―	-114.24%	―	―	―