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BIT Mining (BTCM)
NYSE:BTCM
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BIT Mining (BTCM) AI Stock Analysis

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BTCM

BIT Mining

(NYSE:BTCM)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
BIT Mining's overall stock score reflects substantial financial and operational challenges. The company is struggling with declining revenues and persistent losses, impacting its financial performance. Technical analysis indicates a lack of positive momentum, compounded by a negative valuation profile due to ongoing losses and no dividend yield. These factors outweigh any positive aspects, such as a stable capital structure.
Positive Factors
Stablecoin Launch
The launch of Dolai, a stablecoin, signifies a strategic expansion into blockchain finance, potentially diversifying revenue and enhancing market position.
Rebranding to Solai
Rebranding to Solai aligns the company with the Solana ecosystem, indicating a strategic pivot that could open new growth avenues and partnerships.
Low Leverage
A low debt-to-equity ratio indicates a strong capital structure, providing financial stability and flexibility for future investments or downturns.
Negative Factors
Declining Revenues
Significant revenue decline reflects operational challenges and market pressures, threatening long-term profitability and sustainability.
Cash Flow Constraints
Lack of cash flow generation limits the company's ability to fund operations and invest in growth, posing liquidity risks and financial strain.
Persistent Losses
Ongoing losses indicate operational inefficiencies and financial instability, which could hinder the company's ability to achieve long-term growth.

BIT Mining (BTCM) vs. SPDR S&P 500 ETF (SPY)

BIT Mining Business Overview & Revenue Model

Company DescriptionBIT Mining Limited operates as a cryptocurrency mining company in the Mainland China, the United States, and Hong Kong. The company operates through Data Center and Cryptocurrency Mining segments. It operates a cryptocurrency mining data center in Ohio with power capacity of 82.5 megawatts; and purchases and deploys bitcoin mining machines. In addition, it engages in online gaming activities; and provision of technology services. The company was formerly known as 500.com Limited and changed its name to BIT Mining Limited in April 2021. BIT Mining Limited was founded in 2001 and is based in Akron, Ohio.
How the Company Makes MoneyBIT Mining makes money primarily through the mining of cryptocurrencies, with a significant focus on Bitcoin. The company generates revenue by verifying cryptocurrency transactions and adding them to the blockchain, for which it earns transaction fees and new bitcoins as rewards. BIT Mining operates large-scale mining data centers, which are crucial to its operations, as they house the necessary hardware to perform mining activities. The company's revenue is influenced by factors such as the market price of cryptocurrencies, mining difficulty, and operational efficiency. Additionally, BIT Mining may engage in strategic partnerships or investments in other blockchain-related projects to diversify its revenue streams.

BIT Mining Financial Statement Overview

Summary
BIT Mining is facing significant financial challenges with declining revenues and persistent losses impacting profitability. The balance sheet holds some strength due to low leverage, but cash flow constraints raise concerns about sustainability. The firm must address operational inefficiencies to stabilize its financial health.
Income Statement
45
Neutral
BIT Mining shows a concerning trajectory with declining total revenue from $1.33 billion in 2021 to $32.9 million in 2024. The net profit margin is negative, reflecting consistent losses. EBIT and EBITDA margins are also negative, indicating operational inefficiencies. While the revenue growth rate is positive from 2023 to 2024, the overall financial health is strained by substantial losses.
Balance Sheet
55
Neutral
The company's balance sheet highlights a stable equity position with a debt-to-equity ratio of 0.04 in 2024, reflecting low leverage. The equity ratio is also strong at 68.9%, suggesting a solid capital structure. However, the decline in cash reserves over recent years and persistent losses could pressure liquidity.
Cash Flow
40
Negative
BIT Mining's cash flow situation is fragile, with zero operating and free cash flows reported in 2024. The operating cash flow to net income ratio is unfavorable, indicating poor cash generation relative to losses. Historical negative free cash flows underscore potential liquidity risks.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue32.92M43.10M650.23M1.33B3.34M
Gross Profit2.98M3.05M-19.49M1.61M771.59K
EBITDA-7.01M-12.82M-44.44M-17.56M-15.60M
Net Income-6.62M-28.71M-155.41M-62.40M-32.41M
Balance Sheet
Total Assets86.33M72.60M74.48M301.81M72.01M
Cash, Cash Equivalents and Short-Term Investments1.81M3.24M7.81M112.29M47.25M
Total Debt2.55M4.22M4.20M6.78M1.46M
Total Liabilities19.55M47.46M33.68M92.69M12.24M
Stockholders Equity56.89M25.13M40.80M183.97M61.80M
Cash Flow
Free Cash Flow-33.92M-44.08M-77.34M-90.87M-10.64M
Operating Cash Flow-32.74M-28.41M-63.56M-34.27M-10.42M
Investing Cash Flow28.85M26.16M24.39M-75.41M-13.03M
Financing Cash Flow2.37M0.0029.77M77.67M28.21M

BIT Mining Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.59
Price Trends
50DMA
2.89
Negative
100DMA
2.61
Negative
200DMA
2.42
Positive
Market Momentum
MACD
-0.07
Positive
RSI
42.86
Neutral
STOCH
13.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTCM, the sentiment is Neutral. The current price of 2.59 is below the 20-day moving average (MA) of 2.74, below the 50-day MA of 2.89, and above the 200-day MA of 2.42, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 13.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BTCM.

BIT Mining Risk Analysis

BIT Mining disclosed 87 risk factors in its most recent earnings report. BIT Mining 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 Mining Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
55.12M0.8826.59%41.74%-75.97%
60
Neutral
31.01M-102.40-1.39%0.53%-233.01%
55
Neutral
48.88M-22.45-16.91%16.25%41.38%
46
Neutral
108.12M-2.94-40.97%
45
Neutral
$41.32M-114.24%
44
Neutral
69.44M-5.042131.63%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BTCM
BIT Mining
2.59
0.24
10.21%
WYY
Widepoint
5.00
1.46
41.24%
DTST
Data Storage
4.27
0.50
13.26%
SAIH
SAIHEAT Limited
10.12
-1.28
-11.23%
GMM
Global Mofy Metaverse Ltd.
1.89
-9.21
-82.97%
TDTH
Trident Digital Tech Holdings Ltd Unsponsored ADR
0.92
-2.88
-75.79%
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.Date of analysis: Apr 29, 2025