Bit Digital Undervalued When Compared to Competitors

Bit Digital is a company that engages in Bitcoin mining.  The companies fully deployed hashrate is 1,920 PH/s.  During Q2, Bit Digital began transferring their mining operation out of Asia following the PRC ban of Bitcoin mining.  Since the crypto mining ban, $BTBT has been the target of constant shorts resulting in a decline of its share price.  In this post I will compare Bit Digital to its public competitors, and show that it is time for a rebound of $BTBT. Market Capitalizaiton vs Hashing Power (as of Oct/Sept): $BTBT - 828.92M vs 1,324 PH/s  = 0.62 $MARA -  7,190M vs 2,400  PH/s  = 3.00 $RIOT -  3,810M vs 2,300 PH/s    =  1.66 Market Capitalization vs Plans for growth 2022: Bit Digital has not announced their planned growth, so I am calculating an approximate growth target based on their power/facility agreements disclosed in their most recent SEC filing. $BTBT - 828.92M vs 4,000 PH/s   = 0.20 $MARA - 7,190M vs 13,000 PH/s   = 0.55 $RIOT -  3,810M  vs 7,700 PH/s  = 0.49 Price Target: Using these multipliers calculated using MarketCap/HashRate, a price target can be found for $BTBT to show just how undervalued Bit Digital is. Expected Increase by Current Hashrate: vs MARA: 3.00/.62= 4.84x vs RIOT:  1.66/.62= 2.68x Expected Increase by 2022 Hashrate: vs MARA: .55/.20=2.75x vs RIOT: .49/.20=2.45x The price at the time of writing is $11.99, so that gives a low price target of $29.38 and a high price target of $58.03. Short Squeeze Potential: The price of $BTBT is likely being held down by shorts.  Short interest as a percent of float is hovering anywhere from 20% to 50% in the past few weeks.  This has resulted in the price not increasing along with Bitcoin while its competitors do.  Paired with the implied undervaluation of the stock, this creates a massive potential for the price to increase and shorts to be forced to cover.

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Bit Digital Undervalued When Compared to Competitors

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Bit Digital is a company that engages in Bitcoin mining.  The companies fully deployed hashrate is 1,920 PH/s.  During Q2, Bit Digital began transferring their mining operation out of Asia following the PRC ban of Bitcoin mining.  Since the crypto mining ban, $BTBT has been the target of constant shorts resulting in a decline of its share price.  In this post I will compare Bit Digital to its public competitors, and show that it is time for a rebound of $BTBT.

Market Capitalizaiton vs Hashing Power (as of Oct/Sept):

$BTBT - 828.92M vs 1,324 PH/s  = 0.62

$MARA -  7,190M vs 2,400  PH/s  = 3.00

$RIOT -  3,810M vs 2,300 PH/s    =  1.66

Market Capitalization vs Plans for growth 2022:

Bit Digital has not announced their planned growth, so I am calculating an approximate growth target based on their power/facility agreements disclosed in their most recent SEC filing.

$BTBT - 828.92M vs 4,000 PH/s   = 0.20

$MARA - 7,190M vs 13,000 PH/s   = 0.55

$RIOT -  3,810M  vs 7,700 PH/s  = 0.49

Price Target:

Using these multipliers calculated using MarketCap/HashRate, a price target can be found for $BTBT to show just how undervalued Bit Digital is.

Expected Increase by Current Hashrate:

vs MARA: 3.00/.62= 4.84x

vs RIOT:  1.66/.62= 2.68x

Expected Increase by 2022 Hashrate:

vs MARA: .55/.20=2.75x

vs RIOT: .49/.20=2.45x

The price at the time of writing is $11.99, so that gives a low price target of $29.38 and a high price target of $58.03.

Short Squeeze Potential:

The price of $BTBT is likely being held down by shorts.  Short interest as a percent of float is hovering anywhere from 20% to 50% in the past few weeks.  This has resulted in the price not increasing along with Bitcoin while its competitors do.  Paired with the implied undervaluation of the stock, this creates a massive potential for the price to increase and shorts to be forced to cover.

 

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read-time
1 min

29.00

Target Price

10/ 10

Confidence

2-6 Months

Timeframe
Share
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Earnings Release
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News
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SEC Filing
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