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Bit Digital (BTBT)
NASDAQ:BTBT
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Bit Digital
(NASDAQ:BTBT)
52Neutral
Positive Factors
Revenue Growth
Bit Digital is prioritizing rapid HPC deployment to meet market revenue premium in speed to market and stands committed to achieving a $100M annualized revenue run rate for the HPC segment by year-end 2024.
Strategic Growth
Bit Digital's acquisition of Enovum Data Centers fills an infrastructure gap since moving its bitcoin mining rigs to North America.
Negative Factors
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
$363.82M
Dividend YieldN/A
Average Volume (3M)17.40M
Price to Earnings (P/E)38.3
Beta (1Y)3.04
Revenue Growth167.47%
EPS GrowthN/A
CountryUS
Employees24
SectorFinancial
Sector Strength77
IndustryCapital Markets
Share Statistics
EPS (TTM)0.06
Shares Outstanding153,509,380
10 Day Avg. Volume21,723,240
30 Day Avg. Volume17,395,911
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.11
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
$8.25Price Target Upside248.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Bit Digital Business Overview & Revenue Model
Company DescriptionGolden Bull Ltd. is an online finance marketplace lending company, which engages in the provision of short-term loans. Through its online marketplace, the company connects individual lenders with individual and small business borrowers. The company was founded by Er Xin Zeng in November 2015 and is headquartered in Shanghai, China.
How the Company Makes MoneyBit Digital makes money primarily through the process of mining Bitcoin, which involves using specialized hardware to solve complex mathematical problems that validate and secure transactions on the Bitcoin network. In return for their computational efforts, the company is rewarded with newly minted Bitcoins and transaction fees. These Bitcoins can then be sold on the open market for fiat currency or held as an asset to appreciate over time. Additionally, Bit Digital may engage in strategic partnerships with technology providers or energy companies to optimize their mining operations and reduce costs, thereby potentially increasing profitability. The company's revenue is significantly influenced by the market price of Bitcoin, operational efficiency, and energy costs.
Bit Digital Financial Statement Overview
Summary
Bit Digital's financial statements reflect growth in revenue yet face challenges in profitability and cash flow. The strong equity base provides stability, but operational inefficiencies and high capital expenditures pose risks.Income Statement
Bit Digital shows significant volatility in its income statement metrics. While the company has managed to grow its revenue substantially from 2023 to TTM (Trailing-Twelve-Months), the net profit margin remains negative, indicating ongoing operational challenges. The gross profit margin is moderate, but the negative EBIT and net income suggest inefficiencies and potential cost management issues.45
Neutral
Balance Sheet
The balance sheet reveals a strong equity base with a solid equity ratio, indicating a lower reliance on debt financing. The debt-to-equity ratio is low, suggesting financial stability. However, the return on equity is negative, pointing to profitability issues despite the stable capital structure.55
Neutral
Cash Flow
Bit Digital's cash flow statements highlight potential liquidity concerns. Although the company has positive operating cash flow in the TTM period, free cash flow remains negative due to substantial capital expenditures. The operating cash flow to net income ratio is favorable, but the free cash flow to net income ratio indicates cash constraints impacting overall financial flexibility.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 98.00M | 44.92M | 32.30M | 96.08M | 21.07M | 4.59M | Gross Profit |
| 31.01M | 15.36M | 11.92M | 65.34M | 6.96M | 4.59M | EBIT |
| -56.54M | -16.62M | 26.73M | 18.12M | 315.16K | -4.98M | EBITDA |
| 54.65M | -12.31M | -8.96M | 26.18M | 4.45M | -1.96M | Net Income Common Stockholders |
| -2.69M | -13.89M | -105.30M | 4.86M | -1.10M | -6.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.33M | 64.75M | 33.32M | 42.40M | 6.70M | 34.48K | Total Assets |
| 12.48M | 189.33M | 100.42M | 179.92M | 39.89M | 6.57M | Total Debt |
| 0.00 | 6.22M | 0.00 | 0.00 | 336.72K | 0.00 | Net Debt |
| -2.33M | -10.64M | -32.69M | -42.40M | -68.41K | -34.48K | Total Liabilities |
| 403.22K | 36.62M | 10.49M | 8.27M | 1.89M | 1.51M | Stockholders Equity |
| 11.61M | 152.70M | 89.93M | 171.64M | 38.00M | 4.75M |
| Cash Flow | Free Cash Flow | ||||
| -61.50M | -65.55M | -27.83M | -70.10M | -7.92M | -2.23M | Operating Cash Flow |
| 4.03M | 1.11M | -8.50M | -23.26M | -3.42M | -1.35M | Investing Cash Flow |
| -82.36M | -69.16M | -18.61M | -40.93M | -2.05M | -873.68K | Financing Cash Flow |
| 161.79M | 52.22M | 18.71M | 106.19M | 5.25M | 0.00 |
Bit Digital Technical Analysis
Negative
2.37
Price Trends
3.06
Negative
3.60
Negative
3.38
Negative
Market Momentum
-0.23
Positive
40.09
Neutral
39.27
Neutral
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 2.37 is below the 20-day moving average (MA) of 2.64, below the 50-day MA of 3.06, and below the 200-day MA of 3.38, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 40.09 is Neutral, neither overbought nor oversold. The STOCH value of 39.27 is Neutral, 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 | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
63 Neutral | $2.65B | 21.95 | 4.35% | ― | 34.20% | ― | |
55 Neutral | $4.61B | 9.71 | 18.84% | ― | 69.38% | 30.30% | |
52 Neutral | $363.82M | 38.35 | -1.29% | ― | 167.47% | ― | |
50 Neutral | $6.52M | ― | -0.89% | ― | -35.46% | 60.83% | |
44 Neutral | $296.16M | ― | -87.12% | ― | 5.59% | 32.06% |
* Financial Sector Average
Performance Comparison
BTBT
Bit Digital
2.37
0.13
5.80%
RIOT
Riot Platforms
7.72
-3.90
-33.56%
MARA
Marathon Digital Holdings
13.32
-6.87
-34.03%
SOS
SOS
4.84
-27.11
-84.85%
HIVE
HIVE Digital Technologies
1.76
-1.38
-43.95%
CAN
Canaan
1.05
-0.34
-24.46%
Bit Digital Earnings Call Summary
Earnings Call Date: Nov 18, 2024 | % Change Since: -44.50% | Next Earnings Date: Mar 14, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with strong growth and expansion in the HPC sector counterbalanced by challenges in the Bitcoin mining operations and increased costs. The strategic pivot towards HPC and successful acquisition of Enovum highlight future growth potential, but current financial metrics reflect operational hurdles and a transition phase.Highlights
Significant Revenue Increase
Total revenue for Q3 2024 was $22.7 million, marking a 96% increase compared to the prior year. This growth was driven by contributions from the HPC business.
Enovum Acquisition and Expansion
The acquisition of Enovum for approximately $46 million has vertically integrated Bit Digital's HPC operations, adding significant datacenter capacity and a strong pipeline of expansion opportunities.
GPU Cloud Business Growth
Bit Digital has signed an MSA with Boosteroid and initiated an order for about 300 GPUs, with expectations to deploy around 10,000 GPUs through 2025.
Strong HPC Business Contribution
The HPC services business generated $12.2 million in revenue during the quarter, contributing significantly to gross profit.
New Customer Agreements
New term sheets and MSAs have been signed with several customers, expected to generate substantial revenue and expand GPU deployments.
Lowlights
Bitcoin Mining Challenges
Bitcoin production decreased by 59% year-over-year, and mining revenue decreased by 11% due to higher network difficulty and the impact of halving.
Coinmint Hosting Termination
Bit Digital received a notice of termination for hosting contracts with Coinmint, affecting approximately 46 megawatts of capacity.
Increased Costs and Losses
General and administrative expenses significantly increased to $13.7 million, and adjusted EBITDA was negative $21.8 million, partly due to unrealized losses on digital assets.
Company Guidance
During the Bit Digital Q3 2024 earnings call, the company outlined significant developments and guidance for its operations. They reported a total revenue of $22.7 million, marking a 96% increase compared to the previous year, primarily driven by their High-Performance Computing (HPC) business, which contributed $12.2 million, while Bitcoin mining revenue decreased by 11% to $10.1 million. Bit Digital's Bitcoin production fell 59% year-over-year to 165.4 Bitcoins due to higher network difficulty and the April halving event. The company has set a target to reach a $100 million run rate revenue for its HPC business by year-end 2024. They expect to add 8 megawatts of capacity by Q2 2025 and reach a total of 32 megawatts by the end of the year. Additionally, Bit Digital plans to return to an operational exahash of approximately 3 by the first half of 2025, following the replacement of older mining units with more efficient ones. The call also highlighted an ongoing transformation from a Bitcoin miner to a diversified digital asset company, with a focus on expanding their data center operations and GPU cloud business.Bit Digital Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Bit Digital Transitions to U.S. Domestic Issuer Status
Neutral
Jan 3, 2025
Bit Digital, Inc. has transitioned from being classified as a foreign private issuer to a U.S. domestic issuer as of January 1, 2025. This change requires the company to adhere to more detailed and prompt filing requirements with the U.S. Securities and Exchange Commission, which may impact its operational and reporting practices.
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.