Last Updated: 19 Sep 2024
Executive Summary
Bit Digital Inc. (BTBT) is a bitcoin mining company with a market capitalization of $433 million. The company has been in the red in recent quarters, but revenue growth remains strong. Analysts are bullish on BTBT, with a consensus price target of $5.58 and a majority of buy ratings. The stock is currently trading at $2.87, below its 50-day and 200-day moving averages.
Company Overview
Bit Digital is headquartered in New York City and operates bitcoin mining facilities in the United States and Canada. The company has a hashrate of 1.9 EH/s, which is equivalent to approximately 1.2% of the global bitcoin network hashrate. Bit Digital also provides hosting services for other bitcoin miners.
Fundamental Analysis
Bit Digital's revenue has grown rapidly in recent quarters, but the company has yet to turn a profit. In the most recent quarter, the company reported revenue of $86.9 million, up 2.2% year-over-year. However, the company also reported a net loss of $10.3 million, or $0.07 per share.
Analysts expect Bit Digital to continue to grow revenue in the coming quarters, but they are less optimistic about the company's profitability. The consensus EPS estimate for 2023 is $0.10, which would represent a decline of 52% from 2022.
Technical Analysis
Bit Digital's stock price has been in a downtrend since November 2021. The stock is currently trading below its 50-day and 200-day moving averages, which is a bearish technical signal. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
In the short term, Bit Digital's stock price is likely to remain under pressure. The company's recent earnings report was disappointing, and analysts are expecting the company to continue to lose money in the coming quarters. The stock's technical indicators are also bearish, which suggests that the stock could continue to decline in the near term.
Long Term Outlook
In the long term, Bit Digital's prospects are more uncertain. The company's revenue growth is strong, but the company is not yet profitable. If Bit Digital can turn a profit, the stock could have significant upside potential. However, if the company continues to lose money, the stock could continue to decline.
Analyst Recommendations
Analysts are bullish on Bit Digital, with a consensus price target of $5.58. The majority of analysts have a buy rating on the stock, with only a few analysts having a hold rating.
