U.S. Stock Earnings Reports & Market News
BTBT Full Year 2024 Financial Analysis Report
Executive Summary
BTBT, operating under the full name of Bit Digital Inc., demonstrated significant financial growth in fiscal year 2024, marked by a net income of approximately $28.3 million, reversing prior losses and indicating a robust recovery. Revenue surged to over $108 million, driven predominantly by digital asset mining operations, with notable contributions from the United States and Iceland. The company has strategically expanded its asset base, including recent acquisitions such as Enovum Data Centers, enhancing its data center and HPC capabilities. Despite some operational expenses, the company maintains a strong liquidity position with nearly $95 million in cash and digital assets valued at over $161 million. The outlook remains cautiously optimistic, with ongoing investments in high-performance computing and cloud infrastructure poised to support future growth. Risks include regulatory developments, market volatility, and operational challenges inherent to digital asset markets.
Key Metrics
| Metric | 2024 (Full Year) | 2023 (Full Year) | YoY Change |
|---|---|---|---|
| Revenue | $108,050,720 | $44,916,131 | +140% |
| Net Income | $28,305,810 | ($13,893,281) | Significant turnaround |
| Gross Digital Assets | $161,377,344 | $40,456,083 | +298% |
| Cash & Equivalents | $95,203,135 | $16,860,934 | +464% |
| Total Assets | $538,247,664 | $189,328,382 | +184% |
| Total Liabilities | $74,768,515 | $36,624,526 | +105% |
| Shareholders’ Equity | $463,479,149 | $152,703,856 | +204% |
| EPS (Diluted) | $0.19 | ($0.16) | Improvement |
Income Statement Analysis
Revenues
BTBT’s revenue soared to approximately $108 million from $44.9 million in 2023, primarily driven by increased digital asset mining output, improved hardware efficiency, and expanded operations in the US and Iceland. The growth reflects a successful scaling of mining capacity and higher digital asset prices. The company also benefited from gains on digital assets, totaling over $55.7 million, indicating favorable market conditions and effective asset management.
Gross Profit & Operating Income
Gross profit improved markedly due to higher digital asset sales and digital asset appreciation. Operating income turned positive at approximately $27.6 million compared to a loss of $16.6 million in 2023. This turnaround underscores effective cost management and increased revenue streams, despite rising operating expenses associated with new facilities and data center expansions.
Net Income & EPS
Net income reached approximately $28.3 million, a significant reversal from prior losses, with diluted earnings per share of $0.19. The improvement reflects both operational profitability and non-cash gains on digital assets, contributing to shareholder value and indicating a healthier financial position.
Balance Sheet Analysis
Assets
Assets surged to over $538 million, driven by an increase in digital assets ($161.4 million), property, plant, and equipment ($107.3 million), and cash & equivalents ($95.2 million). The company’s investment in digital assets reflects market appreciation and continued mining output. Property, plant, and equipment increased with recent acquisitions, notably Enovum, adding to the company’s infrastructure assets.
Liabilities & Equity
Total liabilities increased to $74.8 million, mainly from operating lease liabilities and accrued expenses. Shareholders’ equity rose sharply to $463.5 million, supported by retained earnings and a substantial increase in paid-in capital. Leverage remains moderate relative to assets, with a strong equity base providing buffer against market volatility.
Liquidity & Capital Structure
BTBT maintains robust liquidity with nearly $95 million in cash and digital assets. The company has also raised approximately $242.9 million from equity offerings during the period, underpinning its capital expansion and operational investments. Debt levels are manageable, with ongoing lease commitments and strategic acquisitions financed through equity issuance.
Cash Flow Analysis
Operating Activities
Net cash from operating activities was approximately -$12.99 million, impacted by working capital changes, digital asset fluctuations, and operational costs. The company’s cash flow reflects its investment in infrastructure and the inherent volatility of the digital asset market, but remains solid due to high cash reserves.
Investing Activities
Investments in property, plant, and equipment totaled over $94 million, including new mining hardware and expansion of data centers. Dispositions included sale of miners and divestitures of certain subsidiaries, generating nominal cash inflows. The net cash used in investing activities exceeds $149 million, indicating aggressive capacity growth.
Financing Activities
Financing activities generated net proceeds of approximately $242.9 million, mainly from equity offerings and ATM sales. Dividends paid to preferred shareholders and buybacks were minimal. The company’s funding strategy emphasizes equity-based capital raising to support growth and infrastructure investments.
Ratios & DuPont Analysis
| Ratio | 2024 | 2023 |
|---|---|---|
| Net Margin | 26.2% | -30.8% |
| Return on Assets (ROA) | 5.3% | -7.3% |
| Return on Equity (ROE) | 6.1% | -9.1% |
| Asset Turnover | 0.20 | 0.24 |
| Equity Multiplier | 1.16 | 1.24 |
The improvement in net margin, ROA, and ROE in 2024 indicates better operational efficiency and asset utilization, aligned with increased revenues and market appreciation of digital assets. The asset turnover ratio slightly declined due to larger asset base expansion, yet profitability remains strong supported by digital asset gains.
Risk Factors
BTBT faces several risks including regulatory uncertainties across jurisdictions, market volatility affecting digital asset prices, intense competition in crypto mining, operational risks related to hardware and data centers, and macroeconomic factors such as inflation and interest rate fluctuations. Regulatory changes concerning cryptocurrencies and data privacy laws could impact profitability. Market risks involve digital asset price swings that can affect revenue and asset valuation. Operational risks include hardware failure and supply chain disruptions. The company’s growth depends on technological advancements and successful integration of acquired assets, with ongoing exposure to macroeconomic instability.
Notes & Additional Commentary
Significant one-time gains were recognized from digital assets appreciation, notably over $55.7 million in 2024. The recent acquisition of Enovum enhances BTBT’s data center and HPC capabilities, promising synergies and margin expansion. The company’s aggressive capital raising via equity offerings underscores its expansion strategy but also introduces dilution risk. Unusual items include impairment charges in prior years and divestitures of subsidiaries, which have been strategically managed. Overall, the company demonstrates resilience and strategic focus on high-margin digital infrastructure, despite inherent market risks.
Investment Implications
In the short term, BTBT offers compelling upside potential driven by its strong revenue growth, digital asset appreciation, and capacity expansion. The company’s liquidity position and recent acquisitions support sustained growth in high-performance computing and cloud services. Long-term risks include regulatory crackdowns, digital market volatility, and operational challenges; however, diversification into HPC and data center services mitigates some crypto-specific risks. Investors should monitor market dynamics, regulatory developments, and hardware deployment efficiency, but overall, BTBT presents a balanced growth opportunity with significant upside potential if market conditions remain favorable.