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Bit Digital (BTBT)
NASDAQ:BTBT
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Bit Digital
(NASDAQ:BTBT)
61Neutral
Positive Factors
Client Expansion
WhiteFiber, Bit Digital's newly branded HPC platform, has quickly evolved into a significant growth driver, scaling to more than 20 enterprise clients from one initial cloud customer within a year.
Revenue Growth
Bit Digital's decisive pivot into high-performance computing (HPC) showcased FY24 as a striking metamorphosis, pushing revenue higher by 141% to $108.1M.
Strategic Acquisitions
The $46M Enovum acquisition added a fully operational 4MW datacenter, a 288MW development pipeline, and a seasoned team with 25-plus years of datacenter experience to provide an infrastructure foundation in Bit Digital's growth.
Negative Factors
Market Perception
Bit Digital’s rapid, adept pivot toward transparent, predictable, higher-margin HPC infrastructure, service, and support appears overlooked by investors as it seems Bit Digital is still unfairly lumped into the bitcoin mining bucket.
Sales Decline
Sales fell to $22.7M, down 22% from the previous quarter, primarily due to the halving's effect on bitcoin mining.
Bit Digital (BTBT) vs. S&P 500 (SPY)
Market Cap
$338.10M
Dividend YieldN/A
Average Volume (3M)15.19M
Price to Earnings (P/E)7.6
Beta (1Y)2.08
Revenue Growth140.56%
EPS GrowthN/A
CountryUS
Employees54
SectorFinancial
Sector Strength86
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.24
Shares Outstanding182,758,040
10 Day Avg. Volume15,563,010
30 Day Avg. Volume15,185,266
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)9.46
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.25Price Target Upside237.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Bit Digital Business Overview & Revenue Model
Company DescriptionBit Digital, Inc. (BTBT) is a cryptocurrency mining company primarily engaged in the production of Bitcoin. The company operates large-scale data centers that are used to validate transactions on the Bitcoin network, thereby earning Bitcoin as a reward. Bit Digital is focused on leveraging its mining capabilities to maximize efficiency and profitability in the rapidly evolving digital currency sector.
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 Financial Statement Overview
Summary
Bit Digital shows 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.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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 163.76M | 44.92M | 32.30M | 96.08M | 21.07M | Gross Profit |
| 101.38M | 15.36M | 11.92M | 65.34M | 6.96M | EBIT |
| 27.56M | -16.62M | 26.73M | 18.12M | 315.16K | EBITDA |
| 59.87M | -12.31M | -8.96M | 26.18M | 4.45M | Net Income Common Stockholders |
| 28.31M | -13.89M | -105.30M | 4.86M | -1.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 95.61M | 64.75M | 33.32M | 42.40M | 6.70M | Total Assets |
| 538.25M | 189.33M | 100.42M | 179.92M | 39.89M | Total Debt |
| 13.81M | 6.22M | 0.00 | 0.00 | 336.72K | Net Debt |
| -81.40M | -10.64M | -32.69M | -42.40M | -68.41K | Total Liabilities |
| 74.77M | 36.62M | 10.49M | 8.27M | 1.89M | Stockholders Equity |
| 463.48M | 152.70M | 89.93M | 171.64M | 38.00M |
| Cash Flow | Free Cash Flow | |||
| -106.99M | -65.55M | -27.83M | -70.10M | -7.92M | Operating Cash Flow |
| -12.99M | 1.11M | -8.50M | -23.26M | -3.42M | Investing Cash Flow |
| -149.02M | -69.16M | -18.61M | -40.93M | -2.05M | Financing Cash Flow |
| 242.86M | 52.22M | 18.71M | 106.19M | 5.25M |
Bit Digital Technical Analysis
Negative
1.85
Price Trends
2.49
Negative
3.15
Negative
3.32
Negative
Market Momentum
-0.15
Positive
40.50
Neutral
17.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTBT, the sentiment is Negative. The current price of 1.85 is below the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.49, and below the 200-day MA of 3.32, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $13.37B | 9.30 | 9.39% | 4.85% | 16.11% | -8.85% | |
61 Neutral | $338.10M | 7.63 | 9.19% | ― | 140.56% | ― | |
55 Neutral | $4.06B | 9.12 | 18.84% | ― | 69.38% | 30.30% | |
49 Neutral | $714.41M | 13.20 | 56.54% | ― | ― | 75.74% | |
45 Neutral | $3.93M | ― | -27.53% | ― | -89.47% | -261.57% | |
42 Neutral | $874.90M | ― | -7.61% | ― | 19.26% | -14.10% | |
41 Neutral | $859.31M | ― | -31.02% | ― | 102.30% | 45.44% |
* Financial Sector Average
Performance Comparison
BTBT
Bit Digital
1.85
-0.03
-1.60%
WULF
TeraWulf Inc
2.38
0.44
22.68%
MARA
Marathon Digital Holdings
12.51
-2.64
-17.43%
NCPL
NetCapital
1.79
-7.31
-80.33%
CIFR
Cipher Mining
2.42
-1.23
-33.70%
FUFU
BitFuFu
4.38
0.97
28.45%
Bit Digital Earnings Call Summary
Earnings Call Date: Mar 14, 2025 | % Change Since: -18.50% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth and strategic advancements in Bit Digital's HPC and cloud services, with promising future revenue streams and successful acquisitions. However, there were some concerns about gross profit contraction and potential tariff impacts on data center costs. The company is focusing on non-dilutive financing methods and maintaining a lean mining operation.Highlights
Exponential Revenue Growth
Revenues grew by 141% in 2024, with adjusted EBITDA reaching $73 million, driven by the rapid growth of the HPC business.
Successful Enovum Acquisition
The acquisition of Enovum vertically integrated Bit Digital's data center operations, adding a strong customer base and a highly experienced team.
Cloud Services Expansion
Cloud services, initiated in 2024, became the largest business segment, contributing $13 million in Q4 and representing 50% of total revenue.
Strong Customer Pipeline in AI
Significant demand for AI infrastructure with multiple contracts expected to substantially increase revenue, including a potential $25 million ARR from on-demand GPU deployment.
Strategic Partnerships and Colocation Growth
A new multi-year colocation agreement with Cerebras, a leading AI hardware innovator, and continuous expansion of colocation capacity with a robust pipeline.
Lowlights
Gross Profit Contraction
Slight contraction in Q4 gross profits due to new GPU additions and data center capacity leases.
Bitcoin Mining Challenges
Bitcoin mining revenue declined from 98% to 54% of total revenue, with a focus on efficiency rather than expansion due to network difficulty and halving events.
Tariff Concerns
Potential impact of tariff wars on data center build-out costs, with critical components imported from North America regions that might face tariffs.
Company Guidance
The guidance provided during the Bit Digital, Inc. Fiscal Year 2024 earnings call highlighted significant growth and strategic advancements. The company reported a remarkable 141% increase in revenues, with adjusted EBITDA reaching $73 million. A key driver was the expansion of their high-performance computing (HPC) business, which contributed over 40% of total revenue for the year and more than half in Q4. The acquisition of Enovum and the launch of WhiteFiber, their new HPC platform, further strengthened their operations. Cloud services became the largest revenue generator by the second half of 2024, bringing in $13 million in Q4 and contributing 50% of total revenue and 64% of gross profit. Despite a slight contraction in gross profit margins due to new GPU leasing costs, margins are expected to normalize over time as they transition to owning more GPUs. Additionally, the company is actively managing a customer pipeline, with a cloud services run rate projected at $72 million by late March 2025. The acquisition and development of data center facilities, such as Montreal 2, aim to expand their capacity to 32 megawatts by 2025, supporting the anticipated growth in demand for AI infrastructure. The call also touched on the strategic direction of maintaining a cost-efficient Bitcoin mining fleet while prioritizing investments in HPC. Overall, the guidance underscored Bit Digital's focus on scaling operations, securing strategic partnerships, and leveraging non-dilutive financing options to support sustainable growth.Bit Digital Corporate Events
M&A TransactionsBusiness Operations and Strategy
Bit Digital Acquires Enovum’s Data Center Platform
Positive
Feb 12, 2025
In February 2025, Bit Digital announced the acquisition of Enovum’s Tier 3 data center platform for $46 million, adding 4 MW of capacity and a further 33 MW under exclusive letters of intent. This acquisition enhances Bit Digital’s service offering by integrating GPU and data center services, expected to yield high returns and improve financial stability. The strategic move aims to diversify business operations, reduce supplier dependency, and support their AI and HPC buildout plans, ultimately strengthening their market position and shareholder value.
Business Operations and StrategyRegulatory Filings and Compliance
Bit Digital Nears $100 Million Contractual Target
Positive
Feb 11, 2025
On February 10, 2025, Samir Tabar, CEO of Bit Digital, Inc., shared in an interview that the company is close to achieving its $100 million target on a contractual basis following a recent contract announcement. Bit Digital communicates significant information to investors via its Investor Relations website, emphasizing the importance for investors to stay informed through this platform along with the company’s press releases and SEC filings.
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.