NEW YORK - Bit Digital, Inc. (NASDAQ:BTBT), a company specializing in digital assets and artificial intelligence infrastructure, has released its unaudited digital asset production and corporate updates for January 2024. The company reported a production of 145.7 bitcoins (BTC), marking a 14% decrease from the previous month.
As of January 31, 2024, Bit Digital's active hash rate stood at approximately 2.50 exahashes per second (EH/s). The company's treasury held 739.2 BTC and 18,072.2 Ethereum (ETH), valued at approximately $31.4 million and $41.3 million, respectively, at the end of January. The BTC equivalent of Bit Digital's digital asset holdings was approximately 1,739.0, translating to an estimated $74 million.
The firm also reported having $22.6 million in cash and cash equivalents as of the last day of January. In the Proof-of-Stake (PoS) segment, Bit Digital had around 12,784 ETH actively staked in native and liquid staking protocols, earning a blended annual percentage yield (APY) of about 3.69% for the month. The company accrued approximately 38.7 ETH in staking rewards during this period.
In addition, Bit Digital's AI division saw the deployment of 192 servers actively generating revenue under its inaugural contract, with an additional 60 servers coming online on February 4, 2024. The AI segment contributed an estimated $1.0 million in unaudited revenue for January.
Bit Digital operates bitcoin mining facilities in the United States, Canada, and Iceland and has recently expanded into the AI cloud-infrastructure service market through its Bit Digital AI business line.
InvestingPro Insights
In light of Bit Digital, Inc.'s recent production and corporate update, a glance at the real-time data and InvestingPro Tips can provide investors with a more nuanced view of the company's financial health and stock performance. As of the latest metrics, Bit Digital holds a market cap of $217.82 million, with a notably high negative P/E ratio of -5.84 for the last twelve months as of Q1 2023. This suggests that investors are valuing the company despite its lack of profitability during this period.
From an operational standpoint, despite a quarterly revenue growth of 26.6% in Q1 2023, the company's gross profit margin remains at 30.0%, indicating that while revenue is increasing, costs are still a significant factor in their operations. The return on assets, standing at a steep -58.93% for the last twelve months as of Q1 2023, underscores the challenges Bit Digital faces in generating profit from its assets.
Investors should note that Bit Digital's stock price has experienced significant volatility, with a 61.01% return over the last year, yet a substantial year-to-date price total return decrease of -39.48%. This volatility is reflected in the InvestingPro Tips, which highlight the stock's high price volatility and the fact that the stock has taken a big hit over the past week and month.
For those considering an investment in Bit Digital, it's worth noting that the company holds more cash than debt on its balance sheet and that its liquid assets exceed short-term obligations. However, analysts do not anticipate the company to be profitable this year, and the stock does not pay a dividend to shareholders.
To delve deeper into Bit Digital's financials and stock performance, investors can explore additional insights with an InvestingPro+ subscription, which is currently on a special New Year sale with discounts of up to 50%. Use coupon code SFY24 for an additional 10% off a 2-year subscription, or SFY241 for an additional 10% off a 1-year subscription. With InvestingPro, subscribers gain access to a wealth of tips, with 11 additional InvestingPro Tips available for Bit Digital, providing a comprehensive understanding of the company's investment potential.
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