It’s Still Too Hard to Tell If BitNile Holdings Is a Bargain

NILE stock - It’s Still Too Hard to Tell If BitNile Holdings Is a Bargain

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BitNile Holdings (NYSEAMERICAN:NILE), run by Milton “Todd” Ault III, a former broker and now a charismatic YouTube personality, might be a bargain. In fact, I used to think so, when the company was known formerly as Ault Global Holdings. But NILE stock has fallen a good deal since peaking at $2.83 on September 9, 2021. As of Friday, April 8, 2022, 7 months later, the stock is down almost 80% to $59.94 cents.

It’s no wonder Todd Ault took his name off of his company and changed it to BitNile, reflecting the Bitcoin (BTC-USD) mining operation that produces its revenue. The only problem now is that we still don’t have enough financial information about the company’s assets. As it stands NILE stock has a $50.5 million market capitalization, at least according to Yahoo Finance, but this can’t be verified since we don’t know for sure how many shares are now outstanding.

Luckily, BitNile Holdings provided a cryptic update on April 5. It says that the company has now paid off its $66 million in debt. It now claims to be debt-free. So, if we take the $44 million in cash and $49.9 in marketable securities at the end of September ($93.9 million total) and subtract $66 million, it now has $27.9 million in net cash and securities. That assumes that the marketable securities have not fallen in value.

NILE Stock Might Be a Bargain

So, theoretically, cash and securities now account for 55% of the $50.5 million market capitalization ($27.9 million /$50.5 million). That could potentially make NILE stock a bargain, especially if the Bitcoin mining operation is profitable. But BitNile announced on March 31 that its operations lost a good deal of money in 2021 ($17.3 million in continuing operations).

Until the company files its full 10-K filing we won’t know what its balance sheet actually looks like now. We need more definitive information, including its shares outstanding, and its marketable securities. We also need to be able to estimate how profitable its ongoing Bitcoin mining operations and securities trading operations really are now. Once that information is available, we might be able to say that NILE stock is worth buying as a bargain.

On the date of publication, Mark Hake did not hold (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.

Mark Hake writes about personal finance on, and

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