In This Article:
Key Insights
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The considerable ownership by individual investors in Bit Digital indicates that they collectively have a greater say in management and business strategy
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A total of 25 investors have a majority stake in the company with 37% ownership
A look at the shareholders of Bit Digital, Inc. (NASDAQ:BTBT) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While institutions, who own 40% shares weren’t spared from last week’s US$99m market cap drop, individual investors as a group suffered the maximum losses
Let's take a closer look to see what the different types of shareholders can tell us about Bit Digital.
See our latest analysis for Bit Digital
What Does The Institutional Ownership Tell Us About Bit Digital?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Bit Digital. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Bit Digital's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Bit Digital. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 6.6% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 3.9% and 3.8%, of the shares outstanding, respectively. Additionally, the company's CEO Samir Tabar directly holds 0.9% of the total shares outstanding.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.