NEW YORK - Bit Digital, Inc. (NASDAQ:BTBT), a New York-based high-performance computing infrastructure and digital asset production company, disclosed its October 2024 financial figures, including revenue from digital asset production and high-performance computing (HPC) services, along with updates on its cryptocurrency holdings and liquidity.
The company reported that it had 256 servers actively generating revenue under its initial Bit Digital AI contract as of the end of October, contributing approximately $4.3 million in unaudited revenue for the month. Additionally, Bit Digital produced 52.2 bitcoins (BTC) in October, marking a 1.4% increase from the previous month.
Bit Digital’s active hash rate was approximately 2.43 exahashes per second (EH/s) as of October 31, 2024. The company's treasury held 781.2 BTC and 27,503.4 Ethereum (ETH), with fair market values of approximately $54.8 million and $69.2 million, respectively. The BTC equivalent of the company’s digital asset holdings was approximately 1,768.6, valued at around $124.2 million.
Furthermore, the company had cash and cash equivalents totaling $79.8 million and total liquidity—defined as cash and cash equivalents, USD Coin (USDC), and the fair market value of digital assets—of about $203.9 million as of October 31, 2024.
In proof-of-stake (PoS) operations, Bit Digital had roughly 21,568 ETH actively staked in native staking protocols by the end of October. The company earned a blended annual percentage yield (APY) of approximately 3.4% on its staked ETH position for the month, with aggregate staking rewards totaling around 62.2 ETH.
The company also highlighted its participation in upcoming events, including the Roth Technology Equities Conference in New York, NY on November 19-20, a non-deal roadshow (NDR) with H.C. Wainwright in San Francisco, CA on November 21-22, the Noble Capital Markets NobleCon20 Emerging Growth Equity Conference in Boca Raton, FL on December 3-4, and the B. Riley Energy Convergence Conference in New York, NY on December 4.
Investors are cautioned that investing in Bit Digital’s securities involves a high degree of risk, and the company advises reviewing the risk factors in its most recent Annual Report on Form 20-F for the fiscal year ended December 31, 2023. The company’s actual results could differ materially from those anticipated in any forward-looking statements due to a variety of factors.
This report is based on a press release statement from Bit Digital, Inc.
In other recent news, Bit Digital's financial performance has been noteworthy with a reported revenue of $29 million for the second quarter of 2024, a significant 220% increase from the same quarter last year. In September 2024, the company's unaudited earnings indicated a revenue of approximately $4.2 million from its AI services. However, Bit Digital's cryptocurrency mining efforts saw a slight decrease, with 51.5 bitcoins produced, marking a 3.6% decrease from August.
The company has also been active in strategic developments, including the acquisition of Enovum Data Centers for approximately $46 million. This acquisition aims to expand Bit Digital's operations and service offerings. Furthermore, Bit Digital has entered into a Master Service Agreement with Boosteroid, a global cloud gaming provider. The initial order of 300 GPUs under this agreement is projected to generate around $4.6 million in revenue over a five-year period.
Analyst firms B.Riley and H.C. Wainwright have responded positively to these developments. B.Riley initiated coverage on Bit Digital's stock with a Buy rating, highlighting the company's growth in the GPU business. H.C. Wainwright has upgraded its price target for Bit Digital from $6.00 to $7.00, while maintaining its Buy rating on the stock.
Bit Digital has also made key executive appointments, including Benjamin Lamson as Head of Revenue and Tom Sanfilippo as Chief Technology Officer, to bolster its high-performance computing business. These are the recent developments in Bit Digital's operations.
InvestingPro Insights
Bit Digital's October 2024 financial figures reveal a company experiencing significant growth and operational expansion. This growth is further supported by InvestingPro data, which shows a remarkable revenue growth of 153.87% over the last twelve months as of Q2 2024. This aligns with the company's reported increase in bitcoin production and the revenue generated from its high-performance computing services.
InvestingPro Tips highlight that Bit Digital's net income is expected to grow this year, and analysts anticipate sales growth in the current year. These projections are consistent with the company's reported increase in active servers and bitcoin production. Additionally, the company's strong liquidity position, as reported in the article, is reinforced by an InvestingPro Tip indicating that Bit Digital holds more cash than debt on its balance sheet.
However, investors should note that while Bit Digital has shown impressive growth, it's also experiencing high volatility. An InvestingPro Tip points out that the stock's price movements are quite volatile, which is evident in the recent performance data: despite a strong 56.25% return over the last year, the stock has taken a significant hit over the last week, with a -17.06% return.
For those interested in a deeper analysis, InvestingPro offers 16 additional tips for Bit Digital, providing a more comprehensive view of the company's financial health and market position.
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