First Majestic reports exploration success at Santa Elena, promotes Alkhafaji
Investing.com - H.C. Wainwright maintained its Buy rating and $7.00 price target on Bit Digital Inc. (NASDAQ:BTBT), a $488.7 million market cap company, following its strategic pivot announced Wednesday. According to InvestingPro data, the stock currently trades at $2.35, with analysts setting targets between $5-$7.
Bit Digital revealed plans to transform into a pure-play Ethereum treasury and staking company, moving away from its bitcoin mining operations. The company intends to wind down or sell its bitcoin mining business, which generated $7.8 million in the first quarter of 2025, down from $10.5 million in December. The strategic shift comes as the company shows strong revenue growth of 52.44% over the last twelve months, despite challenging market conditions.
The firm also announced it will spin off its WhiteFiber high-performance compute (HPC) business through a public offering. This division produced $16.5 million in revenue during the first quarter of 2025, up from $14.4 million in the fourth quarter of 2024.
To fund its new Ethereum-focused strategy, Bit Digital is offering new shares specifically to purchase Ethereum. The company filed an 8-K early Wednesday providing details about C$60 million in new mortgage financing secured for developing WhiteFiber’s MTL-2 HPC facility in Québec.
H.C. Wainwright projects WhiteFiber could reach approximately $150 million in quarterly revenue by year-end 2026, with total revenue next year potentially reaching $80 million. The research firm named Bit Digital a top pick for 2025. InvestingPro subscribers can access detailed financial health scores and 8 additional key insights about BTBT’s future prospects through our comprehensive Pro Research Report.
In other recent news, Bit Digital, Inc. has announced the pricing of a public offering of 75 million ordinary shares at $2.00 per share, aiming to raise $150 million in gross proceeds. The company plans to utilize the net proceeds to purchase Ethereum, further aligning with its strategic shift towards Ethereum staking and treasury operations. Bit Digital has disclosed holding 24,434.2 ETH and 417.6 BTC as of March 31, 2025, valued at approximately $44.6 million and $34.5 million, respectively, and intends to convert its Bitcoin holdings to Ethereum over time. Additionally, Bit Digital has secured a $43.9 million credit facility from the Royal Bank of Canada to refinance its Canadian data centers, specifically the buildout of the MTL-2 data center in Quebec.
The company is also exploring strategic alternatives for its Bitcoin mining business, which could lead to a sale or wind-down, with proceeds reinvested into Ethereum. B. Riley Securities is managing the public offering, with several co-managers, and the offering is subject to customary closing conditions. The financing arrangement with RBC includes a revolving term facility and real estate term loan, with specific covenants and interest rates outlined. These developments reflect Bit Digital’s ongoing focus on Ethereum-native strategies and infrastructure expansion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.