BTBT Stock: What Is Going on With Short-Squeeze Play Bit Digital Today?

One of the short-squeeze stocks that has been on investors’ radars for some time has been Bit Digital (NASDAQ:BTBT). Indeed, this summer has been quite a volatile one for BTBT stock. Amid previous short-squeeze attempts, BTBT stock has surged and fallen back in dramatic fashion throughout this year.

Bit Digital (BTBT stock): several rows of processors in a crypto mining farm.
Source: PHOTOCREO Michal Bednarek / Shutterstock

We’ve covered some of the catalysts underpinning these moves. Among the chief drivers of Bit Digital’s short-squeeze momentum has been some strong fundamental characteristics in this regard. This summer, Bit Digital managed to make Fintel’s top-five list of short-squeeze opportunities on a number of occasions. As one of the most shorted stocks in the market with a high borrow-fee rate, such is to be expected.

Today, there are a couple of other catalysts driving Bit Digital more than 25% higher at the time of writing. Let’s dive into what investors are watching with this crypto-mining play.

What’s Driving BTBT Stock Higher Today?

Today, it appears a culmination of factors are at play with Bit Digital stock. Indeed, the short-squeeze catalyst continues to be in focus for many investors. However, there are a couple of other high-profile catalysts that have made Bit Digital a stock to watch today.

Among the key catalysts for this crypto miner is the fact that Bitcoin (CCC:BTC-USD) prices just broke $50,000. This is important because Bitcoin prices have languished somewhat of late. A variety of concerns in the crypto world from bans overseas to the potential for regulatory oversight closer to home have been a bearish headwind for such stocks of late.

Additionally, and perhaps more importantly, Bit Digital announced today the company closed its previously announced private placement. While this private placement was done at a level that had previously concerned investors in this crypto miner, the fact that this equity issuance has wrapped up appears to have provided investors with the ability to look forward. That’s a good thing in this space.

Bit Digital remains a high-risk, high-reward type of play for aggressive investors. Accordingly, those with the stomach for volatility appear to be taking a risk-on approach today, with Bit Digital being one of the big winners in today’s market rally.

On the date of publication, Chris MacDonald did not have (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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