BIT Mining stock holds neutral amid power capacity boost

Published 14/04/2025, 12:42
BIT Mining stock holds neutral amid power capacity boost

Monday, H.C. Wainwright maintained a Neutral rating on BIT Mining (NYSE:BTCM) following the company’s latest mining production update. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 2.14, though it operates with relatively weak gross profit margins of 9%. The report highlighted a significant increase in energized and available power due to the recent addition of a site in Ethiopia. BIT Mining’s primary facility in Akron, Ohio, operated at nearly full capacity between 85-90% of its 82.5MW capacity throughout the first quarter of 2025. This capacity supports both hosted and self-mining operations.

The Ohio facility dedicated approximately 43MW to hosting, which is estimated to have generated around $5.9 million in hosting revenue for the first quarter, a rise from $3.8 million in the fourth quarter of 2024. The new Ethiopian site, which reached 35MW active capacity in March, is expected to contribute an additional $2 million or more in hosting revenues. However, self-mining revenues are projected to have decreased to $3.7 million in the first quarter from $5.0 million in the previous quarter, falling short of the $5.3 million estimate provided by H.C. Wainwright in their March 5 note.

Despite not altering estimates at this time, H.C. Wainwright suggests that BIT Mining may report double-digit million revenue figures for the first quarter of 2025, which would surpass their current $9.1 million estimate. The firm acknowledges the company’s operational advancements and the positive momentum in the bitcoin market as potential reasons for investor interest. Trading at just 0.39 times book value, InvestingPro analysis suggests the stock may be undervalued, with 13 additional exclusive insights available to subscribers. Nonetheless, the firm opts to maintain a Neutral stance, choosing to wait for the first-quarter results before reconsidering their position.

In other recent news, BIT Mining Limited reported its production figures for February 2025, showcasing significant activity in cryptocurrency mining. The company produced 42.56 Bitcoin, with a substantial portion of 36.854 BTC generated for hosted clients and 5.708 BTC self-mined. Additionally, BIT Mining mined over two million Dogecoin and 556.7 Litecoin, highlighting its diversified approach to cryptocurrency mining. The company’s total exahash capacity reached 2,588 PH/s, with an average of 4.5 days required to mine each Bitcoin. The cost per mined Bitcoin was reported at $60,960.

BIT Mining’s CEO, Xianfeng Yang, noted the company’s efficiency improvements and cost reduction efforts, particularly through proprietary mining machines. The company is also nearing the completion of acquiring a data center in Ethiopia, which is expected to bolster its operational results. This development is part of BIT Mining’s broader strategy to enhance its infrastructure and operational capabilities. The company also shared forward-looking statements regarding its expectations for growth in Litecoin and Dogecoin mining, emphasizing its strategic positioning in the digital asset mining sector.

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