Loss-Making Bit Digital, Inc. (NASDAQ:BTBT) Set To Breakeven

Bit Digital, Inc. (NASDAQ:BTBT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. The US$400m market-cap company posted a loss in its most recent financial year of US$14m and a latest trailing-twelve-month loss of US$2.7m shrinking the gap between loss and breakeven. The most pressing concern for investors is Bit Digital's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Bit Digital

Consensus from 5 of the American Software analysts is that Bit Digital is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$33m in 2025. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 108% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Bit Digital's growth isn’t the focus of this broad overview, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Bit Digital currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Bit Digital which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bit Digital, take a look at Bit Digital's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

1. Historical Track Record: What has Bit Digital's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bit Digital's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.