BTBT: Expansion Delays Will Be Overcome By Ethereum Platform Opportunities

Analysts have revised Bit Digital's price target downward by $1 to $6 per share, citing delayed data center expansion and lower Ethereum-related valuations as key factors influencing their outlook.

Analyst Commentary

Analysts have provided updated perspectives following Bit Digital’s recent earnings report and price target revisions. Their commentary captures both optimistic and cautionary factors shaping sentiment toward the company’s near-term and longer-term prospects.

• Bullish analysts continue to view Bit Digital as evolving toward an Ethereum-driven platform, leveraging high-performance computing opportunities for long-term earnings growth.
• The company retains Buy and Outperform ratings, which reflects analysts’ confidence in underlying business execution and strategy despite near-term headwinds.
• Positive sentiment is supported by expectations for Bit Digital to capitalize on the expansion of its data center footprint once operational delays are resolved.
• Long-term valuation potential remains intact as the platform diversifies and aligns with emerging trends in the crypto and digital asset sectors.

• Bearish analysts have trimmed their price targets, citing slower-than-expected data center ramp timing, which affects growth projections and execution timelines.
• There is caution regarding Bit Digital’s exposure to Ethereum market fluctuations, as recent mark-to-market adjustments have directly impacted financial metrics.
• Adjusted EBITDA was negatively affected by volatility in digital asset valuations, raising concerns around near-term profit stability.
• Short-term uncertainty remains elevated until delays are resolved and operational momentum is restored.

What's in the News

• Japan's financial regulator plans to require crypto exchanges, including publicly traded companies such as Bit Digital, to hold reserves to cover liabilities. The goal is to improve investor protection in the event of hacks or operational failures (Nikkei).
• Bit Digital reported operating results for the third quarter of 2025, mining 64.9 BTC compared to 165.4 BTC in the prior-year period. This reflected a lower active hash rate and generated a gross margin of approximately 32% for its bitcoin mining segment.
• Bit Digital was added to the S&P TMI Index, expanding its inclusion in widely tracked market benchmarks.

Valuation Changes

• The Fair Value Estimate remained unchanged at $5.38 per share.
• The Discount Rate increased slightly from 8.55% to 8.57%.
• The Revenue Growth assumption rose significantly from 52.54% to 68.20%.
• The Net Profit Margin expectation climbed sharply from 1.48% to 12.77%.
• The projection for the future P/E ratio decreased substantially from 489.4x to 42.4x.