Bit Digital Inc (NASDAQ:BTBT) has earned a repeat ‘Outperform’ rating from analysts at Noble Capital Markets after the firm earlier this week announced the execution of a Master Services Agreement (MSA) with an AI Compute Fund managed by NDA Holdings Venture.
Markets were trending positivelyThe two-year contract provides for 576 Nvidia H200 GPUs, representing a total revenue opportunity of $20.2 million.
The analysts noted that Bit Digital has pushed back its $100 million annualized revenue run-rate goal to early 2025 as it prioritized high-quality revenue opportunities and disciplined capital management.
“We believe prioritizing higher-quality opportunities could lead to better performance, whether increased margins, revenue potential, etc,” analysts wrote in a note to clients.
They added that a “significant” chip upgrade cycle is underway soon with Nvidia’s Blackwell GPUs.
“Navigating this, Bit Digital is being selective in its deals to mitigate residual value risk and to maintain financial flexibility for data center expansion and next-generation GPU investments,” they wrote.
“We believe the company's pristine balance sheet allows it to be ready to invest when the new generation Nvidia GPUs are expected to be released, reducing the risk of obsolescence and continuing its data center expansion journey, building off the 5MW center announced earlier this week.”
The analysts also repeated their $5.50 price target on Bit Digital, which traded up 10% at $3.23 on Thursday morning.
“We believe the company offers stable cash flow through its HPC Services segment, now with a colocation service and increased risk diversification. All of this is combined with a focus on more efficient mining,” they concluded.