Bit Digital Q2 revenue misses expectations

Overview

• Bit Digital fiscal Q2 revenue fell 11.7%, missing analyst expectations, per LSEG data

• Adjusted EBITDA for fiscal Q2 beats consensus, driven by gains on digital assets

• Company transitions to focus on Ethereum treasury and staking strategies

Outlook

• Bit Digital aims to build large on-chain ETH balance sheet

• Company expects to generate attractive staking yields for shareholders

Result Drivers

• ETH STRATEGY - Transition to Ethereum treasury and staking strategies drove significant growth in ETH holdings and staking rewards

• MINING DECLINE - Digital asset mining revenue fell 58.8% due to increased network difficulty and halving event

• CLOUD SERVICES GROWTH - Revenue from cloud services increased 32.8%, contributing to offsetting declines in other areas

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for Bit Digital Inc is $5.75, about 44.9% above its August 13 closing price of $3.17

Press Release: ID:nPn6GL65Ma