Bit Digital: The Bitcoin Exit Is Real
Summary
- Bit Digital is pivoting away from Bitcoin mining toward high-margin ETH staking, and HPC services, transforming its revenue mix and growth strategy.
- The $150M equity raise will fund ETH purchases for treasury and WhiteFiber HPC expansion, but introduces dilution and ETH concentration risk.
- WhiteFiber's potential IPO could unlock value for BTBT shareholders, either through direct share distribution or a sum-of-the-parts re-rating.
- At 2x P/S and ~$2/share, with management insider buying and a clear strategic shift, BTBT offers an attractive risk/reward and is rated Buy.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTBT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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