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Bit Digital reports $4.1 million June revenue from AI

EditorAhmed Abdulazez Abdulkadir
Published 07/05/2024, 08:52 PM
BTBT
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NEW YORK - Bit Digital, Inc. (NASDAQ:BTBT), a digital asset and AI infrastructure company, has disclosed its unaudited financial performance for June 2024, revealing a revenue of approximately $4.1 million from its initial AI contract. Despite a slight 2.5% drop in Bitcoin production compared to the previous month, the company produced 61.7 BTC in June.

As of June 30, the firm reported an active hash rate of around 2.57 EH/s and held 585.9 BTC and 29,927.9 ETH in its treasury, with a combined fair market value of about $139.4 million. Additionally, Bit Digital's cash and cash equivalents stood at $60.8 million, contributing to a total liquidity of nearly $200.6 million.

In the realm of Proof-of-Stake, Bit Digital had approximately 17,184 ETH staked, earning a blended annual percentage yield (APY) of 3.5% for June and aggregate staking rewards of about 49.8 ETH.

The company is also set to participate in several upcoming industry events, including EthCC in Brussels from July 8-11, H.C. Wainwright NDR on July 23-24, and Bitcoin Nashville 2024 from July 25-27.

Bit Digital operates its bitcoin mining in the United States, Canada, and Iceland and has diversified its business by establishing Bit Digital AI, a specialized cloud-infrastructure service for AI applications.

Investors are cautioned that investing in Bit Digital's securities carries a high degree of risk. The company advises potential investors to consider the risks described in its most recent Annual Report, emphasizing that past financial performance is not indicative of future results.

Factors such as network mining difficulty and bitcoin hash rate fluctuations could significantly impact Bit Digital's bitcoin production outcomes.

This report is based on a press release statement from Bit Digital, Inc. and includes information that is forward-looking and subject to risks and uncertainties.

In other recent news, Bit Digital has reported significant advancements in its operations and financial performance. Bit Digital's expansion of its high-performance computing (HPC) contract is projected to double the contract's size, significantly boosting annual revenue. H.C. Wainwright has responded to the expansion by raising the price target for Bit Digital from $5.00 to $6.00, while maintaining a Buy rating for the stock.

Furthermore, Bit Digital has secured a $275 million GPU supply deal, which includes an additional 2,048 GPUs, bringing the total to 4,096 over a three-year period. This agreement is expected to generate an annualized revenue of $92 million. The company has also reported a May 2024 revenue of approximately $4.2 million from its Bit Digital AI contract.

In addition to these developments, Bit Digital received analyst upgrades from both H.C. Wainwright and Noble Capital. Both firms maintained a Buy and Outperform rating respectively, highlighting the company's potential in high-performance computing, expansion in mining operations, and a model based on staked Ethereum. These recent developments reflect the dynamic nature of Bit Digital's operations in the evolving landscape of the cryptocurrency market.

InvestingPro Insights

Bit Digital, Inc. (NASDAQ:BTBT) has recently unveiled its unaudited financial figures for June 2024, marking a notable period for the digital asset company. With a focus on its newly initiated AI contract, which contributed approximately $4.1 million in revenue, Bit Digital continues to make strides in diversifying its business beyond cryptocurrency mining. The company's operational metrics and strategic financial positioning offer valuable insights into its potential for growth and stability in a dynamic market.

InvestingPro data highlights Bit Digital's robust market capitalization of $396.89 million, indicating significant investor confidence in the company's business model and future prospects. A notable aspect of the company's financial health is its Price to Earnings (P/E) ratio, which stands at 8.1, suggesting that the stock may be undervalued compared to its earnings potential. Moreover, the company's impressive revenue growth of 109.26% over the last twelve months as of Q1 2024 underscores its expanding operational scale and efficiency.

An InvestingPro Tip that stands out is Bit Digital's advantageous liquidity position, as it holds more cash than debt on its balance sheet. This financial cushion could provide the flexibility needed to navigate market uncertainties and invest in growth opportunities. Additionally, the company's stock has experienced a strong return over the last three months, with a 36.1% price total return, reflecting positive investor sentiment and market performance.

For investors seeking a deeper analysis of Bit Digital, InvestingPro offers a comprehensive suite of tools and additional tips. Currently, there are 11 more InvestingPro Tips available, which can provide further insights into the company's financial metrics, market performance, and potential investment risks. To access these insights and enhance your investment strategy, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

Overall, Bit Digital's strategic moves in the digital asset and AI infrastructure space, combined with its strong financial metrics, position the company as an intriguing prospect for investors. With the added insights from InvestingPro, stakeholders can make more informed decisions as they navigate the evolving landscape of digital asset investments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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