NEW YORK - Bit Digital, Inc. (NASDAQ:BTBT), a New York-based digital asset and artificial intelligence infrastructure firm, disclosed a reduction in its Bitcoin (BTC) production for April 2024. The company produced 119.3 BTC, marking a 12.5% decrease from the previous month, primarily attributed to the recent halving event which reduced bitcoin block rewards.
As of April 30, Bit Digital’s active hash rate was approximately 2.76 exahashes per second (EH/s). The company's treasury holdings included 992.4 BTC and 20,241.7 Ethereum (ETH), valued at approximately $60.2 million and $61.0 million respectively. The BTC equivalent of Bit Digital's digital asset holdings was about 2,010.1 BTC or approximately $121.9 million. Additionally, the firm reported cash and cash equivalents of $43.7 million.
In the realm of artificial intelligence, Bit Digital had 251 servers actively generating revenue through its Bit Digital AI contract, earning an estimated $4.1 million in unaudited revenue for April.
Regarding its Proof-of-Stake operations, Bit Digital had approximately 17,184 ETH actively staked, earning a blended annual percentage yield (APY) of around 1.0% for the month. The yield experienced a decrease due to the time taken to redeploy staked ETH after changing its staking solutions provider. The company accrued approximately 13.9 ETH in staking rewards during April.
Bit Digital operates its bitcoin mining facilities across the United States, Canada, and Iceland and has established a business line, Bit Digital AI, offering cloud-infrastructure services for AI applications.
Investors are cautioned that investing in Bit Digital's securities involves significant risks. The company's past financial performance should not be seen as an indicator of future results, and investing decisions should consider the risks and uncertainties described in the "Risk Factors" section of the company's most recent Annual Report on Form 20-F for the fiscal year ended December 31, 2023.
The information provided is based on a press release statement from Bit Digital, Inc.
InvestingPro Insights
In light of Bit Digital's (NASDAQ:BTBT) recent announcement regarding a dip in Bitcoin production, investors might be seeking additional financial metrics to gauge the company's current standing and future prospects. According to InvestingPro data, the company's market capitalization stands at $245.7 million, which provides a sense of the company's size in the competitive digital asset sector. With a negative Price to Earnings (P/E) ratio of -14.25 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at -20.52, Bit Digital is currently unprofitable. However, the revenue growth for the same period was a robust 39.07%, signaling potential for future earnings as the company scales.
From the InvestingPro Tips, it's notable that Bit Digital holds more cash than debt on its balance sheet, which could be a reassuring sign for investors concerned about the company's financial health amidst the reported decrease in BTC production. Moreover, analysts predict that the company will be profitable this year, which could indicate a turnaround from the past performance. Currently, there are over 9 additional InvestingPro Tips available for Bit Digital, offering a deeper dive into the company's financial health and projections. Interested investors can learn more and take advantage of these insights by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
These insights, when considered alongside the company's strategic operations in artificial intelligence and Proof-of-Stake activities, may help investors form a more comprehensive view of Bit Digital's potential in the dynamic cryptocurrency and AI markets.
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