NEW YORK - Bit Digital, Inc. (NASDAQ:BTBT), a New York-based company specializing in digital assets and artificial intelligence infrastructure, has disclosed its unaudited financial performance for July 2024. The company reported generating an estimated $4.3 million in revenue from its Bit Digital AI contract, with its servers actively contributing to this income.
During the same month, Bit Digital produced 60.5 bitcoins (BTC), marking a slight 1.9% decrease from the previous month. The active hash rate of the company was approximately 2.46 EH/s as of the end of July.
The company's treasury held significant amounts of cryptocurrencies, with 641.8 BTC and 27,274.4 Ethereum (ETH), valued at roughly $41.5 million and $88.1 million, respectively. The BTC equivalent of Bit Digital's digital asset holdings was approximately 2,009.0 BTC, or about $129.8 million.
In terms of liquidity, Bit Digital had cash and cash equivalents totaling $82.1 million. The total liquidity, defined as the sum of cash, cash equivalents, USD Coin (USDC), and the fair market value of digital assets, was approximately $211.9 million as of July 31, 2024.
The company also highlighted its Proof-of-Stake (PoS) activities, with around 17,184 ETH actively staked in native protocols. The staked ETH earned a blended Annual Percentage Yield (APY) of approximately 3.3% for July, and the company accrued approximately 47.5 ETH in staking rewards.
In other recent news, Bit Digital has been making significant strides in its operations. The company's high-performance computing (HPC) revenue notably increased to $8.1 million in March. This growth, attributed to the company's execution capabilities, was further evidenced by a substantial contract extension worth $275 million over three years. Analyst firms H.C. Wainwright and Noble Capital maintained a Buy and Outperform rating respectively, reflecting their confidence in Bit Digital's HPC operations and expansion in mining operations.
Bit Digital also reported a revenue of approximately $4.1 million from its initial AI contract for June 2024. The company's June financial performance revealed an active hash rate of around 2.57 EH/s and held digital assets with a combined fair market value of about $139.4 million. Bit Digital's cash and cash equivalents stood at $60.8 million, contributing to a total liquidity of nearly $200.6 million.
H.C. Wainwright raised the price target for Bit Digital to $6.00, following the company's announcement about the expansion of its HPC contract. This expansion is set to double the contract's size and significantly boost annual revenue. The firm's positive outlook reflects confidence in Bit Digital's strategic navigation and the diversification of its business.
Additionally, Bit Digital secured a $275 million GPU supply deal, expected to generate an annualized revenue of $92 million. The company also revealed the expansion of its HPC contract, projected to double the contract's size, significantly boosting annual revenue. Bit Digital's May 2024 revenue was reported at approximately $4.2 million from its Bit Digital AI contract. These are the latest developments in the company's recent performance and strategic moves.
InvestingPro Insights
Bit Digital, Inc. (NASDAQ:BTBT) has shown some notable numbers in its recent financial performance. With a market capitalization of $351.88 million, the company's valuation appears to be on a solid footing. Investors may find the price-to-earnings (P/E) ratio particularly interesting; standing at 7.22, it suggests that the market may be valuing the company's earnings quite reasonably. The adjusted P/E ratio for the last twelve months as of Q1 2024 is slightly higher at 8.81, indicating a potential change in market sentiment or earnings over the period.
Revenue growth has been impressive, with a year-over-year increase of 109.26% for the last twelve months as of Q1 2024. This is complemented by an even more staggering quarterly revenue growth of 266.45% for Q1 2024, signaling that Bit Digital may be significantly expanding its market reach or finding new revenue streams. However, investors might also consider the operational aspects, as the company reported an operating income margin of -29.44%, suggesting challenges in translating revenue into operational profitability.
From the perspective of investment risk and potential, Bit Digital's stock has been characterized by high price volatility. The InvestingPro Tips indicate that the stock has experienced a significant hit over the last week, with a one-week price total return of -22.24%, and the trend extends over the last month with a -23.11% return. Despite this, the company has had a strong return over the last three months, at 19.87%. Investors looking for opportunities in companies with dynamic stock price movements might find Bit Digital an interesting case.
For those considering a deeper investment analysis, InvestingPro offers 15 additional tips on Bit Digital, including insights on cash burn rate, profitability predictions, and valuation implications. These InvestingPro Tips could be crucial for investors aiming to make informed decisions about Bit Digital's financial health and future prospects.
For further information and a comprehensive list of tips, visit InvestingPro at: https://www.investing.com/pro/BTBT.
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