In a report released yesterday, Kevin Dede from H.C. Wainwright maintained a Buy rating on Bit Digital (BTBT – Research Report), with a price target of $7.00.
Kevin Dede has given his Buy rating due to a combination of factors that highlight Bit Digital’s strategic shift and growth potential. The company’s transition into high-performance computing (HPC) has significantly boosted its revenue, marking a 141% increase in FY24. This shift is underscored by the success of their WhiteFiber platform, which has rapidly expanded its client base from a single cloud customer to over 20 enterprise clients within a year.
Furthermore, Bit Digital’s cloud services have shown robust growth, contributing significantly to the company’s revenue. The anticipated deployments and expansions, such as the DNA Fund’s GPU deployment and the on-demand GPU offering in Iceland, are expected to further enhance revenue streams. Additionally, partnerships with major players like Boosteroid indicate a promising future. These developments suggest that Bit Digital’s pivot to a more predictable and higher-margin business model is gaining traction, which Dede believes is undervalued by the market, justifying his Buy rating.
According to TipRanks, Dede is a 3-star analyst with an average return of 1.7% and a 37.70% success rate. Dede covers the Technology sector, focusing on stocks such as Canaan, Exodus Movement, Inc. Class A, and BIT Mining.