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Bit Digital reports May revenue of $4.2 million

Published 06/06/2024, 07:00 am
BTBT
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NEW YORK - Bit Digital, Inc. (NASDAQ:BTBT), a New York-based digital asset and AI infrastructure company, disclosed its unaudited May 2024 revenue and operational updates. The company generated an estimated $4.2 million in revenue from 256 servers under its initial Bit Digital AI contract by the end of May.

During the same period, Bit Digital produced 63.3 BTC, marking a 47% decrease from the previous month. This decline is attributed to the reduced bitcoin block rewards post the April halving event. As of May 31, the company's operational hash rate stood at about 2.54 EH/s, a drop due to voluntary curtailment activities.

The firm's digital asset treasury, excluding certain ETH holdings, comprised 1,038.4 BTC and 20,508.3 ETH, valued at approximately $70.1 million and $77.1 million respectively. The BTC equivalent of Bit Digital's digital assets totaled approximately 2,188.9, or around $147.7 million.

Bit Digital's liquidity, defined as the sum of cash, cash equivalents, USDC, and the fair market value of digital assets, was reported at roughly $195.0 million at the end of May.

In terms of its Proof-of-Stake operations, Bit Digital had around 17,184 ETH actively staked, earning a blended APY of about 3.1% for May, and aggregate staking rewards of 45.8 ETH.

Looking ahead, Bit Digital is scheduled to participate in several industry events, including Bitcoin Prague 2024 from June 13-15th, and the Noble Capital Markets Emerging Growth Consumer / Entertainment / Media Virtual Conference on June 26-27th.

Investors are cautioned that investing in Bit Digital's securities carries risks, and past financial performance is not indicative of future results. The company's future performance could be impacted by changes in network-wide mining difficulty rate, bitcoin hash rate, and other operational factors.

This information is based on a press release statement from Bit Digital, Inc. Investors are encouraged to consider the risks described in the company's most recent Annual Report when making investment decisions.

In other recent news, Bit Digital Inc. has seen noteworthy developments in its operations and financial performance. H.C. Wainwright maintained a Buy rating on the company, highlighting its potential in high-performance computing, expansion in mining operations, and a model based on staked Ethereum. Similarly, Noble Capital also maintained an Outperform rating, reflecting confidence in Bit Digital's ability to navigate uncertainties in the cryptocurrency market.

On the production front, Bit Digital reported a 12.5% decrease in Bitcoin production for April 2024, primarily due to the recent halving event. However, the company's AI contract and staked Ethereum provided some revenue stability. In contrast, the company's Bitcoin production in March 2024 saw a 6% rise compared to the previous month.

In a significant development, Bit Digital received a proposal from a customer to double the Graphics Processing Units in their existing agreement. This expansion could significantly enhance Bit Digital's AI business segment, potentially leading to an annualized revenue run-rate of $100 million. These recent developments reflect the dynamic nature of Bit Digital's operations and the evolving landscape of the cryptocurrency market.

InvestingPro Insights

As Bit Digital, Inc. (NASDAQ:BTBT) continues to navigate the dynamic cryptocurrency market, recent data from InvestingPro offers a deeper look into the company's financial health and market performance. With a market capitalization of $340.02 million and a noteworthy revenue growth of 109.26% over the last twelve months as of Q1 2024, Bit Digital appears to be expanding its financial footprint in the industry.

The company's performance metrics indicate a strong return over the last month, with a price total return of 27.27%. This is complemented by an InvestingPro Tip that highlights the company's significant return over the last week, suggesting a positive short-term investment sentiment. Additionally, the P/E ratio stands at 7, which may appeal to value investors looking for potentially undervalized opportunities.

InvestingPro Tips further reveal that Bit Digital holds more cash than debt on its balance sheet and that analysts predict the company will be profitable this year. These insights could reassure investors about the company's financial stability and growth prospects. For those considering a deeper dive into Bit Digital's potential, InvestingPro offers an array of additional tips — with 12 more available on their platform.

Interested investors can take advantage of an exclusive offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. This can provide access to valuable insights and analytics that could inform investment decisions regarding Bit Digital and other companies.

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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