The average target price of BTBT is 6.0 and suggests 81% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 7.0. This translates into 113% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 5.0. This suggests 52% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was incorporated in 2017 and is headquartered in New York, New York.

Bit Digital, Inc.

Financial Services

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

BTBT reported revenue of USD 103mn in the last 12 months, down 5% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. Market expects EPS to reach USD -0.05 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 10ppts and its growth accelerated by 21ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 54.2% in the last 12 months, up from -27.4% in FY23. 

Historically, BTBT has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -77.3%, down from -30.9% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to -26.5%, below the peers. The consensus estimate for FY24 for RoCE is -5.2%, again behind the peers. 

Another important profitability metric, return on assets (RoA), amounted to -23.6% in the last 12 months, a decrease from -7.3% in FY23. The market analysts predict that RoA will be -2.3% in FY24, again weaker than its peers. 

Bit Digital, Inc. reported a return on equity (RoE) of -27.9% in the last 12 months, down from -9.1% in FY23. The market consensus projects an RoE of -2.9% in FY24, again behind its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.8 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

BTBT has above average trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually stable and remains favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to bleak profitability, negligible return on capital, poor working capital management, and inadequate interest coverage. We note resilient historical revenue growth and solid cash flow generation, among the positive credit factors. 

In highly turbulent market conditions, BTBT is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, BTBT is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is 'expensive' on EV/EBITDA. 

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Bit Digital, Inc.

$ 3.29

3

Bit Digital, Inc.

$ 3.29

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 3.29

About

About

Bit Digital, Inc.

$ 3.29

3

Bit Digital, Inc.

$ 3.29

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 3.29

About

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