Bit Digital Inc (NASDAQ:BTBT)’s initial public offering (IPO) of its high-performance computing (HPC) subsidiary WhiteFiber is seen as a potential catalyst for new growth, according to analysts at Noble Capital Markets.
The analysts maintained their ‘Outperform’ rating and $5.50 price target on Bit Digital, implying upside from its current share price of about $3, following WhiteFiber’s IPO on the Nasdaq under the ticker symbol “WYFI.”
They highlighted that the separation of the two businesses, combined with a significant capital raise, could provide investors with a clearer understanding of each segment’s potential.
“While it is early, the IPO of WhiteFiber could be a game changer for Bit Digital, enabling investors to unbundle the value of the HPC business from Bit Digital’s historic crypto operations,” the analysts wrote.
WhiteFiber raised approximately $145.1 million through the sale of 9.375 million shares at $17 each, with Bit Digital retaining 74.3% of the outstanding stock.
The analysts noted several upcoming milestones. The company's MTL-2 and MTL-3 data centers are expected to be operational in the fourth quarter of 2025, with the NC-1 site following in early 2026.
“We believe the company's expansion of its anchor AI contract provides the company with additional stable cash flow and risk diversification outside of its cryptocurrency mining and staking operations,” the analysts concluded.
“With its asset light operating approach, pristine balance sheet, and significant growth opportunities, both in the Bitcoin and Ethereum verticals and now AI, we believe Bit Digital is well-positioned to capitalize on any such market upturn.”