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Bit Digital, Inc. (BTBT)
NASDAQ:BTBT
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Bit Digital
(NASDAQ:BTBT)
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Rating:64Neutral
Price Target:
$2.00
▼(-5.21% Downside)
Bit Digital's overall stock score is driven by its strong earnings call performance and strategic shift towards Ethereum, which are significant positives. However, operational inefficiencies, cash flow challenges, and bearish technical indicators weigh on the score. The company's undervaluation presents a potential opportunity, but risks remain due to its current financial and market performance.
Positive Factors
Ethereum staking ramp
The material shift into Ethereum staking transforms revenue from one-time mining receipts to repeatable staking income. A large, actively staked ETH base scales protocol revenue, reduces reliance on mining cycles, and supports predictable operational cash inflows over the medium term.
Strong liquidity and asset base
Ample cash and a sizeable liquid digital-asset portfolio with negligible debt provide financial flexibility to fund staking, strategic investments, or cover operating shortfalls. This balance-sheet strength supports multi-quarter resilience amid crypto volatility.
Strategic diversification into AI infra
Maintaining a majority stake in an AI infrastructure business diversifies revenue away from pure crypto exposure. This structural asset ownership can generate non-crypto cash flows, create strategic synergies, and reduce concentration risk over several quarters.
Negative Factors
Negative operating and free cash flow
Persistent negative operating and free cash flow indicate the company is not converting accounting profits into usable cash. Over months, this pressures liquidity, forces asset sales or new financing, and undermines the sustainability of growth or staking-funded operations.
Operational margin weakness
A negative EBIT margin despite high net profit suggests non-operational gains are inflating profits while core operations struggle. Declining gross margins signal cost pressures or lower operational efficiency that must be addressed to sustain earnings quality.
Wind-down of Bitcoin mining
Reducing Bitcoin mining narrows the company’s revenue mix and eliminates a historically core cash-generating activity. If Ethereum staking or other assets fail to scale fast enough, the company may face reduced diversification and greater sensitivity to execution risk.
Bit Digital (BTBT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$699.14M
Dividend YieldN/A
Average Volume (3M)27.88M
Price to Earnings (P/E)5.4
Beta (1Y)2.32
Revenue Growth9.52%
EPS Growth496.04%
CountryUS
Employees54
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.47
Shares Outstanding323,674,840
10 Day Avg. Volume25,696,180
30 Day Avg. Volume27,879,286
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)0.89
Price to Sales (P/S)2.51
P/FCF Ratio-3.84
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue3.20
Enterprise Value/Gross Profit4.77
Enterprise Value/Ebitda2.60
Forecast
1Y Price Target
$5.63Price Target Upside166.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Bit Digital Business Overview & Revenue Model
Company DescriptionBit 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.
How the Company Makes MoneyBit Digital generates revenue primarily through Bitcoin mining operations. The company earns income by validating transactions on the Bitcoin blockchain and receiving rewards in the form of newly minted Bitcoins and transaction fees. The revenue model is supported by maintaining a fleet of mining machines and ensuring optimal performance through strategic partnerships with hardware providers and energy suppliers. Additionally, fluctuations in Bitcoin prices significantly influence the company’s earnings, as higher Bitcoin values result in increased profitability from mined assets. The company's efforts to continuously improve mining efficiency and reduce operational costs also play a crucial role in enhancing its revenue generation capabilities.
Bit Digital Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant achievements in Ethereum holdings and staking revenue growth, a strong financial position, and strategic moves like the White Fiber IPO. While there are challenges like the decline in Bitcoin mining and increased G&A expenses, the highlights significantly outweigh the lowlights.Q3-2025 Updates
Positive Updates
Significant Growth in Ethereum Holdings
Bit Digital increased its Ethereum holdings from about 122,000 ETH at quarter-end to more than 153,000 ETH by October, with roughly 132,000 actively staked. This represents a fivefold increase since June.
Convertible Notes Offering
Completed a $150 million convertible notes offering, using the proceeds to purchase approximately 31,000 ETH. The offering was designed to be accretive to net asset value per share.
Substantial Increase in Staking Revenue
Ethereum staking revenue grew to about $2.9 million in the third quarter, up from $400,000 in the prior quarter, marking a 542% increase from the previous year.
Strong Financial Position
Ended the quarter with approximately $179 million in cash and cash equivalents and approximately $424 million in digital assets, mainly Ethereum, with no debt outstanding.
Record Gross Margin
Achieved a gross profit of $18.3 million, representing a 60% gross margin compared to 32% in the same quarter last year.
White Fiber IPO and Ownership
Completed the White Fiber IPO and maintained a 71.5% ownership stake in an AI infrastructure company, positioning Bit Digital uniquely in digital assets and AI.
Negative Updates
Bitcoin Mining Decline
Produced 65 Bitcoin in the third quarter, down from 83 in the prior quarter, as Bit Digital continues to wind down its Bitcoin mining operations.
Increased General and Administrative Expenses
General and administrative expenses rose to $33.1 million compared to $19.7 million in the prior quarter, due to higher share-based compensation and consulting costs related to the White Fiber IPO.
Company Guidance
In the third quarter of fiscal year 2025, Bit Digital reported a strategic shift to focus on Ethereum, with significant increases in their Ethereum holdings and staking activities. By the end of October, Ethereum holdings had surged to over 153,000 ETH, with approximately 132,000 actively staked, marking a fivefold increase since June. The company completed a $150 million convertible notes offering to purchase 31,000 ETH, contributing to an increase in Ethereum staking revenue to $2.9 million, up from $400,000 in the previous quarter. This growth highlights a transition to an Ethereum-centric platform with a robust staking operation that now serves as a primary revenue engine. Bit Digital also reported a total revenue of $30.5 million for the quarter, a gross profit of $18.3 million, and a significant net income of $146.7 million, driven by a $168 million gain from Ethereum appreciation. Despite winding down its Bitcoin mining business, the company maintained a mining gross margin of 32% with an active hash rate of about 1.9 exahash. Bit Digital's disciplined approach to capital allocation and risk management reflects a strong commitment to long-term shareholder value, focusing on Ethereum's potential as a foundational digital asset.Bit Digital Financial Statement Overview
Summary
Bit Digital demonstrates strong profitability with a high net profit margin and effective equity utilization. However, operational inefficiencies and cash flow challenges pose risks. The company's low leverage and strong equity position provide financial stability, but improving operational efficiency and cash flow management are crucial for sustainable growth.Income Statement
Bit Digital shows a strong net profit margin of 84.04% in TTM, indicating high profitability. However, the EBIT margin is negative, suggesting operational inefficiencies. Revenue growth is positive at 4.70%, but the gross profit margin has decreased from 61.91% to 55.82% compared to the previous year, indicating potential cost pressures.65
Positive
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.046, reflecting conservative leverage. Return on equity is healthy at 22.65%, indicating effective use of equity to generate profits. The equity ratio is strong, suggesting a solid financial position with a high proportion of assets financed by equity.70
Positive
Cash Flow
Bit Digital faces challenges with negative operating cash flow and free cash flow, indicating cash management issues. The free cash flow to net income ratio is high at 2.27, suggesting cash flow inefficiencies. Despite a significant free cash flow growth rate of 144.88%, the negative cash flow metrics highlight liquidity concerns.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 162.59M | 163.76M | 44.92M | 32.30M | 96.08M | 21.07M |
| Gross Profit | 108.89M | 101.38M | 15.36M | 11.92M | 65.34M | 6.96M |
| EBITDA | 200.10M | 59.87M | -12.31M | -11.06M | 26.18M | 4.45M |
| Net Income | 137.02M | 28.31M | -13.89M | -105.30M | -1.01M | -2.28M |
Balance Sheet | ||||||
| Total Assets | 1.13B | 538.25M | 189.33M | 100.42M | 179.92M | 39.89M |
| Cash, Cash Equivalents and Short-Term Investments | 180.15M | 98.16M | 64.75M | 33.32M | 42.40M | 405.13K |
| Total Debt | 41.92M | 13.81M | 6.22M | 0.00 | 0.00 | 336.72K |
| Total Liabilities | 87.50M | 74.77M | 36.62M | 10.49M | 8.27M | 1.89M |
| Stockholders Equity | 906.15M | 463.48M | 152.70M | 89.93M | 171.64M | 38.00M |
Cash Flow | ||||||
| Free Cash Flow | -448.39M | -106.99M | -65.55M | -27.83M | -70.10M | -7.92M |
| Operating Cash Flow | -197.54M | -12.99M | 1.11M | -8.50M | -23.26M | -3.42M |
| Investing Cash Flow | -289.09M | -149.02M | -69.16M | -18.61M | -40.93M | -2.05M |
| Financing Cash Flow | 563.84M | 242.86M | 52.22M | 18.71M | 106.19M | 5.25M |
Bit Digital Technical Analysis
Negative
2.11
Price Trends
2.20
Negative
2.78
Negative
2.70
Negative
Market Momentum
-0.03
Positive
44.50
Neutral
33.76
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 2.11 is below the 20-day moving average (MA) of 2.19, below the 50-day MA of 2.20, and below the 200-day MA of 2.70, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.50 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 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 27 risk factors in its most recent earnings report. Bit Digital reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
WhiteFiber has a very limited history of operating as an independent, public company, and its historical financial information is not necessarily representative of the results that it would have achieved as a separate, publicly traded company and may not be a reliable indicator of its future results. Q3, 2025
2.
WhiteFiber operates in a capital-intensive industry and is subject to capital market and interest rate risks. Q3, 2025
3.
We have an evolving business model which is subject to various uncertainties. Q3, 2025
Bit Digital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.92B | 5.46 | 23.13% | ― | 53.51% | 112.53% | |
64 Neutral | $699.14M | 5.44 | 22.44% | ― | 9.52% | 496.04% | |
56 Neutral | $124.12M | 3.63 | 43.45% | 1.65% | 482.50% | 82.04% | |
56 Neutral | $7.49B | -92.91 | -9.69% | ― | 35.41% | -38.08% | |
55 Neutral | C$954.25M | -11.71 | -7.18% | ― | 60.71% | -52.29% |
* Financial Sector Average
BTBT
Bit Digital
2.11
-1.04
-33.02%
MARA
MARA Holdings
9.86
-8.48
-46.24%
BTCS
BTCS
2.53
-0.49
-16.23%
TSE:HIVE
HIVE Digital Technologies
3.73
-0.53
-12.44%
CIFR
Cipher Mining
17.70
11.97
208.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.