BTBT - Bit Digital: An Underappreciated Buyout Candidate

2024-06-05 09:10:09 ET

Summary

• Consolidation attempts in the Bitcoin mining space have begun after recently reported buyout offers for both Bitfarms and Core Scientific.
• Bit Digital's mix of fleet efficiency, balance sheet position, and HPC service revenue makes it one of the better targets in my view.
• Based on Riot Platforms' rejected offer for Bitfarms, I can make the case BTBT should be trading closer to $3.50 per share. A 25% premium to 6/4 close.

We're still less than two months removed from the long-anticipated Bitcoin ( BTC-USD ) halving in late-April, and we've already seen attempts at consolidation in the public mining equities. Just days after the markets found out about a takeover bid of Bitfarms ( BITF ) by Riot Platforms ( RIOT ), HPC client-turned potential buyout suitor CoreWeave reportedly put in an offer on Core Scientific ( CORZ ). Some companies are well positioned to be buyers in a market like this, others are interesting takeover targets. I believe Bit Digital ( BTBT ) is the latter....

For further details see: