Bit Digital Is a Surprisingly Strong Value Among Crypto Miners

Want to profit from the Bitcoin (CCC:BTC-USD) revolution without having to own a cryptocurrency wallet? It’s entirely possible, as you can invest in a premier Bitcoin miner called Bit Digital (NASDAQ:BTBT) simply by owning shares of BTBT stock.

Concept art of crypto mining with little figuring and a Bitcoin (BTC) token.

Source: Shutterstock

Let’s start off with the basics on Bit Digital. The company bills itself as “[o]ne of the world’s largest publicly-listed bitcoin mining companies.”

Moreover, the company is a “sustainability-focused generator of digital assets” with global crypto-mining operations representing a “currently-owned maximum hash rate of 1,920 PH/S.”

But does all of that hash power translate to strong revenues? That’s a valid question.

Let’s look underneath the hood to see if Bit Digital’s mining rigs are as lucrative as we should expect them to be.

BTBT Stock at a Glance

First things first: since BTBT stock is a crypto-mining stock, it’s sometimes strongly correlated to the Bitcoin price.

At the same time, you might be able to get powerful leverage to Bitcoin’s price moves through ownership of Bit Digital shares. In other words, the stock could sometimes magnify the gains in BTC.

Here’s an example: in mid-July, BTBT stock was trading at around $5. Meanwhile, Bitcoin was bottoming out near $30,000.

The next thing you know, BTC rallied to $40,000 in early August. That’s a 25% gain — not too bad at all.

During that time frame, however, Bit Digital shares soared to $17, for returns of more than 200%.

As you can see, BTBT stock is a fast runner. However, it should also be attractive to value-focused investors.

Believe it or not, Bit Digital has a trailing 12-month price-to-earnings ratio of just 14.84x.

This means that the company’s shares have a price that’s properly justified by Bit Digital’s earnings.

So, BTBT stock offers the benefits of a momentum stock as well as the advantages of a value stock, at the same time.

A Carbon-Free Collaboration

It’s one thing to invest in a cryptocurrency miner. Taking a position in a truly mindful crypto miner is a different story.

If you’d like to stake a claim in an environmentally friendly Bitcoin miner, consider Bit Digital.

The company just entered into a strategic co-mining agreement with Blockfusion USA, Inc., which features vast hash power without a big carbon footprint.

According to the agreement, Blockfusion will assist Bit Digital with the operation of a 35-megawatt Bitcoin mining system for a term of 2 years. The arrangement also provided for automatic 1 year renewals.

If everything works out as planned, this partnership will facilitate an increase in Bit Digital’s hash rate of up to approximately 1.2 Exahash.

And here’s where sustainability enters into the picture: The energy used by the mining system is primarily expected to be generated from zero-carbon emission sources.

Getting Results

Clearly, Bit Digital is serious about ramping up its Bitcoin-mining operations in 2021.

Yet, the doubters might wonder if Bit Digital’s cryptocurrency mining produces substantial revenues.

Fortunately, the company’s recently reported second-quarter financial results should lay any doubts to rest.

As it turns out, Bit Digital’s quarterly revenues from cryptocurrency mining operations totaled $28.3 million.

Furthermore, Bit Digital 562.9 Bitcoins during the second quarter. That’s a hefty number of Bitcoins as they cost tens of thousands of dollars apiece.

Plus, it’s impressive that the company reported owning 32,500 miners. And 3,515 of Bit Digital’s miners were acquired during the second quarter of 2021.

While we’re at it, let’s not forget about Bit Digital’s commitment to sustainability. In that vein, the company reported that it’s “working with Apex Group Ltd, an independent ESG consultancy, to become one the first publicly-listed bitcoin miners to receive an independent ESG rating on our operations.”

The Takeaway

There’s no doubt that Bit Digital is fully committed to powerful Bitcoin mining operations.

Yet, there’s also a sustainability angle here. Besides, BTBT stock appears to offer compelling value at the current share price.

Thus, the more we learn about Bit Digital, the more reasons we can find to consider getting involved as an investor.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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