H.C. Wainwright Reiterates Buy Rating on Bit Digital Inc. (BTBT)

H.C. Wainwright analyst Kevin Dede reiterated a Buy rating and $7.00 price target on Bit Digital Inc. (NASDAQ: BTBT).

The analyst commented: "Not withstanding the decisive strategic and operating pivot accompanied by the launch of WhiteFiber discussed in detail March 17 here, Bit Digital continues to make inroads in the tier 3 datacenter build game—a $53.2M April 10 material definitive agreement offered in an 8-K released April 16, stands as an execution proof point, in our opinion. Just guessing at the size based on Bit Digital's 4Q24 earnings call commentary, we imagine the deal adds approximately 20MW in pushing Bit Digital to its 2025 32MW target; backing out the 13MW approximate cumulative total MW of MT1, MT2, and MT3 (all sites in Quebec, the latter dedicated to Cerebras) yields just shy of 20MW. And in thinking about the Madison, NC, location, one comes to understand the camouflaged value of the deal: $53.2M for 20MW of HPC at a spot roughly 100 miles from three sizable metro areas, including: Charlotte, NC; Greensboro, NC; and Raleigh-Durham, NC. Sitting roughly 200 miles from Richmond, VA, is the icing on the geographic position cake, where in location alone one would think the Madison site could be worth at least two-times the deal's terms given low-latency inference AI compatibility. So, what's the complication suppressing the purchase price? Again, we can only guess, but we understand Bit Digital prefers brownfield sites in both offering less out-front purchase cost as well as enhanced speed to market. We suspect that this site, as with MT2 and MT3, Bit Digital has some renovation work ahead of it, but that aside, we equally gather the site comes with many amenities, including water, fiber, and expansion opportunities as the purchase deal closing is contingent on an in-process energy study we think designed to investigate the maximum potential load. All in all, the Madison site agreement speaks volumes to Bit Digital's metamorphosis from crypto miner to HPC host and cloud service provider boasting an impressive array of customers: 13 in MT1, and separately: DNA Holdings Venture's AI Compute Fund, Cerebras, Boosteroid, and “first customer” detailed in the note referenced above, and all outside of the hyperscaler industry grouping. With the deal expected to close mid-May, we are making no changes to estimates at this time. Already a top pick of ours for 2025, we maintain our Bit Digital $7 price target and Buy rating."

For an analyst ratings summary and ratings history on Bit Digital Inc. click here. For more ratings news on Bit Digital Inc. click here.

Shares of Bit Digital Inc. closed at $1.78 yesterday.

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