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Bit Digital, Inc. (NASDAQ:BTBT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. With the latest financial year loss of US$14m and a trailing-twelve-month loss of US$2.7m, the US$595m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Bit Digital will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Bit Digital
Bit Digital is bordering on breakeven, according to the 4 American Software analysts. They expect the company to post a final loss in 2024, before turning a profit of US$47m in 2025. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 120% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Bit Digital's upcoming projects, but, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Bit Digital has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Bit Digital which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bit Digital, take a look at Bit Digital's company page on Simply Wall St. We've also put together a list of important aspects you should look at:
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Historical Track Record: What has Bit Digital's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bit Digital's board and the CEO’s background.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.