Analysts at Noble Capital have repeated their ‘Outperform’ rating on Bit Digital Inc (NASDAQ:BTBT) following the release of its November production numbers, which showed the company had 266 servers active during the month and achieved approximately $4.3 million in GPU Cloud revenue.
At its Enovum Data Center, the company had 13 customers actively generating revenue with colocation revenue of approximately $503,500, the analysts highlighted.
“We believe the Boosteroid agreement, along with the two Master Services Agreements (MSAs) signed in the third quarter should expand revenue in the coming months,” they wrote.
The company had 21,568 Ethereum actively staked in November, roughly flat month-over-month, earning a blended annual percentage yield (APY) of 3.4% and staking rewards of approximately 59.9 Ethereum.
“We believe the addition of Ethereum staking provides Bit Digital with an additional revenue source with a blue chip cryptocurrency that is undergoing a new undertaking with 'Ethereum 2.0' to make the token more power efficient and secure,” they wrote.
On the Bitcoin mining side, the company produced 44.9 Bitcoin at an active hashrate of 2.51 EH/s during November.
Analysts noted that management is replacing energy-efficient miners, expecting to lift its active hash rate to 3 EH/s by the first half of 2025.
The company is seen benefitting amid broader momentum in the digital assets space, specifically, Bitcoin topping $100,000 on Friday and the nomination of Paul Atkins as SEC chair, who favors digital assets.
“In our view, the nomination of Mr Atkins could result in more use cases for digital assets, providing more potential growth in asset prices,” they wrote.
The analysts also repeated their $5.50 price target on Bit Digital, implying upside of approximately 13% from Bit Digital’s share price at the time of writing.
“We believe the company offers stable cash flow through its HPC Services segment, now with a colocation service, and increased risk diversification,” they wrote. “All of this is combined with a focus on more efficient mining.”