Bit Digital stock maintains Buy rating at H.C. Wainwright amid crypto valuation debate

Published 08/10/2025, 12:36
Bit Digital stock maintains Buy rating at H.C. Wainwright amid crypto valuation debate

Investing.com - H.C. Wainwright has reiterated its Buy rating and $7.00 price target on Bit Digital Inc. (NASDAQ:BTBT), maintaining its positive outlook on the cryptocurrency mining company. According to InvestingPro data, the stock has shown remarkable momentum with a 102% return over the past six months, while analysts maintain a strong buy consensus with price targets ranging from $5 to $7.

The research firm highlighted the ongoing debate about how digital asset treasury (DAT) companies should be valued, noting many newly-created DAT companies are trading below the value of their digital assets alone. This valuation disconnect has sparked industry-wide discussion and may be driving consolidation, as evidenced by Strive’s pursuit of Semler Scientific reportedly for its bitcoin holdings. InvestingPro analysis reveals BTBT maintains a strong financial position with more cash than debt and a healthy current ratio of 7.82, suggesting robust liquidity.

H.C. Wainwright analyst Kevin Dede acknowledged the complexity in determining appropriate valuation metrics for crypto companies, citing numerous variables influenced by "perception and crowd psychology" that make comprehensive quantification difficult.

The firm identified two key considerations for evaluating DAT companies: the sustainability of their underlying businesses beyond crypto holdings, and development work within blockchain ecosystems that may generate returns through staking yield.

Despite these valuation challenges in the broader crypto sector, H.C. Wainwright maintained its positive stance on Bit Digital, suggesting the company’s market capitalization should at minimum reflect "the complete and total value of its assets, perhaps with a future growth-of-business premium added."

In other recent news, Bit Digital, Inc. reported holding approximately 122,187 Ethereum, valued at $506.6 million as of September 30, 2025. The company acquired 653 Ethereum in September at an average price of $2,643.27. Bit Digital also announced preliminary financial results for the two months ending August 31, 2025, estimating revenue between $20.1 million and $22.2 million. The company stated these figures remain subject to finalization and have not been audited by their accounting firm, Audit Alliance LLP. Additionally, Bit Digital revealed plans to offer $100 million in convertible senior notes, with an option for underwriters to purchase an additional $15 million. These notes are due in 2030 and can be converted or redeemed earlier. Furthermore, Bit Digital adjourned its General Meeting of Shareholders due to a lack of quorum, delaying a proposal to increase authorized share capital. Shareholders passed a resolution to reconvene the meeting at a later date.

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