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Bit Mining Limited (BTCM)
:BTCM

BIT Mining (BTCM) AI Stock Analysis

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BIT Mining

(NYSE:BTCM)

Rating:45Neutral
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 (BTCM) vs. SPDR S&P 500 ETF (SPY)

BIT Mining Business Overview & Revenue Model

Company DescriptionBIT 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 MoneyBIT 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
45
Neutral
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
55
Neutral
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
40
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
32.92M43.10M650.23M1.33B3.34M
Gross Profit
2.98M3.05M-19.49M1.61M771.59K
EBIT
-10.75M-25.19M-182.86M-40.91M
EBITDA
-7.01M-12.82M590.00K300.00K-15.60M
Net Income Common Stockholders
-6.62M-28.71M-181.20M-61.51M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.81M3.24M7.81M17.67M47.25M
Total Assets
86.33M72.60M74.48M301.81M72.01M
Total Debt
2.55M4.22M4.20M7.15M1.46M
Net Debt
740.00K975.00K-1.24M-10.52M-45.79M
Total Liabilities
19.55M47.46M33.68M92.69M12.24M
Stockholders Equity
56.89M25.13M40.80M183.97M61.80M
Cash FlowFree Cash Flow
0.00-44.08M-77.34M-90.87M
Operating Cash Flow
-32.74M-28.41M-63.56M-34.27M
Investing Cash Flow
0.0026.16M24.39M-75.41M3.32M
Financing Cash Flow
0.000.0029.77M77.67M

BIT Mining Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.95
Price Trends
50DMA
1.85
Positive
100DMA
1.94
Negative
200DMA
2.31
Negative
Market Momentum
MACD
0.03
Positive
RSI
46.26
Neutral
STOCH
11.03
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 Risk Analysis

BIT Mining disclosed 87 risk factors in its most recent earnings report. BIT Mining 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 Mining Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GMGMM
68
Neutral
$54.61M0.4236.45%53.82%68.04%
64
Neutral
€10.78B20.288.24%1.79%4.86%-9.14%
56
Neutral
$23.92M129.840.90%-4.17%-72.98%
50
Neutral
$79.92M-36.39%
WYWYY
48
Neutral
$29.93M-14.76%24.03%49.96%
45
Neutral
$31.11M-114.24%
42
Neutral
$16.84M
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BTCM
BIT Mining
1.89
-0.83
-30.51%
WYY
Widepoint
3.15
0.06
1.94%
DTST
Data Storage
3.36
-2.56
-43.24%
SAIH
SAIHEAT Limited
7.23
-5.78
-44.43%
GMM
Global Mofy Metaverse Ltd.
2.64
-10.38
-79.72%
TDTH
Trident Digital Tech Holdings Ltd Unsponsored ADR
0.24
-3.74
-93.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.