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 164mn in the last 12 months, up 232% from FY23. 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.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 50ppts over six months and grown 7ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 67.5% in the last 12 months, up from -24.9% in FY23. 

Historically, BTBT has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 17.3%, a growth from -28.1% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 7.8% in the last 12 months, an increase from -7.3% in FY23. The market analysts predict that RoA will be -2.3% in FY24, though below its peers in this period. 

In the last 12 months, the return on capital employed (RoCE) grew to 8.8%, below the peers. The consensus estimate for FY24 for RoCE is -5.1%, again behind the peers. 

Bit Digital, Inc. reported a return on equity (RoE) of 9.2% in the last 12 months, up from -9.1% in FY23. The market consensus projects an RoE of -2.8% in FY24, again behind its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.4 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 quite stable and remains extremely 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 moderate. We note resilient historical revenue growth, strong debt servicing capacity, and an favourable capital structure, among the positive credit factors. Among the negative credit factors and we point to poor working capital management, inadequate interest coverage.

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. 

Considering past and projected metrics, the stock is moderately 'expensive' compared to its peers. In particular, the stock is reasonably priced on P/E, of fair value on EV/EBITD. 

Bit Digital, Inc.

$ 2.01

2

Bit Digital, Inc.

$ 2.01

2

Risk factor

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Risk / Profitability

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Risk factor

Profitability factor

$ 2.01

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About

Bit Digital, Inc.

$ 2.01

2

Bit Digital, Inc.

$ 2.01

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 2.01

About

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