Category: Financial Services

Release – Bitcoin Depot to Deploy 940 Bitcoin ATMs at a National Convenience Store Retailer

Posted on by [email protected]

Research News and Market Data on BTM

January 17, 2024 11:51 AM

Bitcoin Depot Plans to Install Kiosks in Roughly 940 Stores Across 24 US States to Provide Greater Access for Users to Fund Their Bitcoin Wallet with Cash

ATLANTA, Jan. 17, 2024 (GLOBE NEWSWIRE) — Bitcoin Depot Inc. (“Bitcoin Depot” or the “Company”) (NASDAQ: BTM), a U.S.-based Bitcoin ATM operator and leading fintech company, today announced the launch of its retail partnership with a leading national convenience retailer with an extensive international network of locations across a portfolio of many brands.

Beginning in Q1 of 2024, the Company will install roughly 940 Bitcoin Depot kiosks in convenience store locations across 24 states. The initial rollout is part of a larger initiative with the opportunity to grow into additional stores beyond the initial 940.

“We are happy to be embarking on a long-term strategic partnership with one of our largest retail partners to-date. Together, we look forward to broadening our reach in tandem with a brand that values our commitment to providing access to Bitcoin,” said Bitcoin Depot Founder and CEO Brandon Mintz.

Bitcoin Depot’s products and services provide an intuitive, quick, and convenient process for converting cash into Bitcoin, giving users the ability to access the broader digital financial system by conveniently purchasing Bitcoin at Bitcoin ATMs in 48 states. In addition to Bitcoin ATMs, Bitcoin Depot also has BDCheckout enabled for customers to fund their wallets with cash at participating retail locations in 28 states across the nation.

About Bitcoin Depot 
Bitcoin Depot Inc. (Nasdaq: BTM) was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to bitcoin at Bitcoin Depot kiosks in 48 states and at thousands of name-brand retail locations in 28 states through its BDCheckout product. The Company has the largest market share in North America with approximately 6,400 kiosk locations as of September 30, 2023. Learn more at www.bitcoindepot.com 

Cautionary Note Regarding Forward-Looking Statements

This press release and any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Forward-looking statements are any statements other than statements of historical fact, and include, but are not limited to, statements regarding the expectations of plans, business strategies, objectives and growth and anticipated financial and operational performance, including our growth strategy and ability to increase deployment of our products and services, the anticipated effects of the Amendment, and the closing of the Preferred Sale. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control.

These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; failure to realize the anticipated benefits of the business combination; future global, regional or local economic and market conditions; the development, effects and enforcement of laws and regulations; our ability to manage future growth; our ability to develop new products and services, bring them to market in a timely manner and make enhancements to our platform; the effects of competition on our future business; our ability to issue equity or equity-linked securities; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors described or referenced in filings with the Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this press release. We anticipate that subsequent events and developments will cause our assessments to change.

We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

Contacts: 

Investors  
Cody Slach, Alex Kovtun  
Gateway Group, Inc.  
949-574-3860  
[email protected]

Media  
Christina Lockwood, Brenlyn Motlagh, Ryan Deloney  
Gateway Group, Inc. 
949-574-3860  
[email protected]

Source: Bitcoin Depot Inc.

Released January 17, 2024

Bitcoin Depot (BTM) – Quarterly Preview

Posted on by [email protected]


Wednesday, January 17, 2024

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Tweaking Q4. We are tweaking our Q4 revenue estimate lower from $173.5 million to $157.0 million, reflecting an expectation for lower revenue per kiosk. Our Q4 adj. EBITDA margin expectation is largely unchanged at 5.7% or $8.9 million.

Headwinds in California. California enacted a law effective January 1, 2024 that caps Bitcoin ATM transactions at $1,000. While this limit is well above the company’s median transaction size of roughly $200, it could affect its larger transactions. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

GoHealth, Inc. (GOCO) – Initiating Coverage: An Encompassing Solution To Improve The Medicare Marketplace

Posted on by [email protected]


Tuesday, January 16, 2024

Gregory Aurand, Senior Vice President, Equity Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Large Growing Complex Medicare Market. About 66.4 million Americans were covered by Medicare in calendar 2022 and the Medicare 65 and older population is expected to reach more than 93 million people by 2060.  GoHealth has already helped 10 million Americans and seeks to be the consumer Medicare health plan destination in this growing market. As the market grows more complex with a greater number of plan offerings, GoHealth’s platform simplifies the annual Medicare private plan shopping process.

Proprietary Offering Platform. GoHealth is driving growth in the Medicare Advantage and Medicare Supplemental markets through its pressure-free unbiased consumer-centric Encompass Solution platform that utilizes its proprietary data machine-learning PlanFit Checkup technology.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

JP Morgan Reigns Supreme with $50B Record Banking Profit in Tumultuous 2023

Posted on by [email protected]

JPMorgan Chase, the nation’s largest bank, reported a 15% decline in fourth quarter 2023 earnings on Friday, weighed down by a massive $2.9 billion fee related to the government takeover of failed regional banks last year.

The bank posted profits of $9.31 billion, or $3.04 per share, for the final three months of 2023. This compared to earnings of $10.9 billion, or $3.33 per share, in the same period a year earlier. Excluding the regional banking crisis fee and other one-time items, JPMorgan said it earned $3.97 per share in the fourth quarter.

Total revenue for the quarter rose 12% to $39.94 billion, slightly above analyst forecasts. The jump was driven by the bank’s acquisition of First Republic Bank in late 2023, higher net interest income, and increased investment banking fees.

“The U.S. economy continues to be resilient, with consumers still spending, and markets currently expect a soft landing,” said JPMorgan CEO Jamie Dimon in a statement. “These significant and somewhat unprecedented forces cause us to remain cautious.”

Dimon cited high inflation, rising interest rates, out-of-control government spending, supply chain disruptions, the war in Ukraine, and tensions in the Middle East as potential threats to the economic outlook.

For the full year 2023, JPMorgan posted record profits of nearly $50 billion, including $4.1 billion from its acquisition of First Republic. The deal instantly gave JPMorgan a leading position in serving wealthy clients in California and other coastal markets.

Smaller Competitors Squeezed

While JPMorgan has deftly navigated the rising rate environment, smaller regional banks have struggled as the Federal Reserve hiked rates aggressively to combat inflation. Many were caught holding lower-yielding assets funded by higher-cost deposits. This squeezed net interest margins.

The regional banking crisis came to a head in early 2023 as a wave of defaults and bank seizures overwhelmed the FDIC insurance fund. JPMorgan and other large banks were handed the bill, with the FDIC levying $18 billion in special fees on the industry to recapitalize the fund.

Specifically, JPMorgan paid a $2.9 billion fee in the fourth quarter related to the FDIC assessments. This was a major factor in the bank’s profit decline compared to a year ago.

JPMorgan Cautious Despite Solid Year

Despite posting record full-year earnings, Dimon and JPMorgan management struck a cautious tone in their earnings release. While U.S. consumers remain resilient for now, risks are mounting.

Inflation could prove stickier than anticipated, forcing the Fed to keep rates higher for longer. The war in Ukraine shows no signs of resolution. Middle East conflicts continue to elevate oil prices. And the U.S. government is racking up huge deficits, with no political will to cut spending.

For banks, this backdrop could pressure lending activity, loan performance, and capital levels. Mortgage rates are already above 7%, denting the housing market. Credit card delinquencies are edging higher. Corporate debt looks vulnerable as businesses face slower growth and input cost pressures.

All of this warrants a cautious stance until more clarity emerges later this year.

With JPMorgan having reported solid results for 2023, investors are now focused on the bank’s outlook for 2024 amid an expected shift in the interest rate environment.

On Friday’s earnings call, analysts will be listening closely to hear JPMorgan’s projections and commentary around key items that could impact performance this year:

  • Net interest income guidance for 2024. As the Fed cuts rates, net interest margins may compress. But higher loan volumes could offset this.
  • Expectations for credit costs and loan losses. While credit metrics are healthy now, a weaker economy could strain consumers and corporate borrowers.
  • Thoughts on impending hikes to capital requirements. Banks are hoping to reduce the impact of new rules on capital buffers.
  • M&A landscape. Does JPMorgan see opportunities for deals amid lower valuations?
  • Plans for excess capital deployment. Investors want to hear about potential increases in buybacks, dividends, and other uses.

JPMorgan entered 2024 with strong capital levels, putting it in position to boost shareholder returns even with new regulations. Investors will be listening to hear how management plans to leverage JPMorgan’s financial strength in the year ahead.

The bank’s 2024 outlook will be critical in determining whether its stock can build on last year’s big gains. JPMorgan was the top performing Dow stock in 2023, and investors are betting it can continue to drive profits in a more subdued rate environment.

Bit Digital (BTBT) – Bitcoin ETFs Approved

Posted on by [email protected]


Friday, January 12, 2024

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Approval. The SEC approved rule changes to allow spot bitcoin ETFs that will enable regular investors to easily access the cryptocurrency. Already, some 11 firms, including such majors as Grayscale, BlackRock, Fidelity, and Franklin Templeton, are readying ETFs for the market. We believe the approval will drive demand, and hence pricing, for bitcoin higher.

Offering More Exposure and Regulation. With the approval of the bitcoin ETFs, the SEC is allowing for more institutional and retail investors exposure in bitcoin. A scenario whereby financial advisors recommend an allocation of a bitcoin ETF to investor portfolios is not a stretch, in our view. New regulation aimed at eliminating fraud and normalizing crypto also could soon follow.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

BlackRock Goes Big on Infrastructure in Transformational $12.5B GIP Deal

Posted on by [email protected]

In a move that could shape its future, BlackRock is making a huge bet on infrastructure investing with its $12.5 billion acquisition of specialist firm Global Infrastructure Partners (GIP).

The deal, announced Friday, includes $3 billion in cash and 12 million BlackRock shares to bring GIP’s $100+ billion infrastructure portfolio under its umbrella. With infrastructure booming globally, it plants BlackRock’s flag in an alternative asset class that offers stability and strong cash flows.

For Larry Fink, BlackRock’s founder and CEO, the deal provides a growth engine and caps a storied career. At 71 years old, Fink has not yet named his successor. This acquisition generates buzz around President Rob Kapito and COO Rob Goldstein as potential heirs apparent.

It also brings infrastructure investing veterans from GIP into BlackRock’s senior ranks. GIP Chairman Bayo Ogunlesi will join BlackRock’s board, while co-founders like ex-World Bank President Jim Yong Kim provide invaluable experience.

Why Infrastructure, Why Now?

Infrastructure has become increasingly attractive to institutional investors, particularly those with long-term liabilities to fund. The assets provide inflation protection, and the regulated nature of many infrastructure projects leads to predictable cash flows even during economic downturns.

Swelling demand for infrastructure also powers opportunity and growth. E-commerce and supply chain modernization require massive investment in logistics and transportation assets like airports, seaports, rail, and warehouses. The global energy transition is expected to necessitate trillions in spending on renewable power, battery storage, transmission lines, and more. And booming data usage makes digital infrastructure such as cell towers and data centers a near-certainty for major funding.

BlackRock saw the writing on the wall. With interest rates still relatively low by historical standards, it pulled the trigger on a transformative infrastructure deal rather than waiting for valuations to potentially rise further. GIP’s assets also provide diversification and inflation mitigation to complement BlackRock’s vast holdings of stocks and bonds.

For forward-thinking infrastructure investors, BlackRock’s whopper of a deal validates the long-term potential of the sector. And it positions the asset management titan to capitalize on infrastructure demand in both developed and emerging markets for decades to come.

Rejuvenating Revenues

The move into infrastructure also helps reinvigorate BlackRock’s revenues. With rock-bottom interest rates in recent years limiting fee income, BlackRock has searched for ways to accelerate growth. The company manages over $10 trillion in assets but has seen minimal increase in revenue since 2018.

Alternative investments like infrastructure represent a potential answer. They generally command higher management fees while also offering incentive fees based on investment performance. That combination bodes well for BlackRock’s results.

BlackRock has dipped its toe into alternatives over the past decade via real estate, hedge funds, private equity, and other strategies. But the GIP deal vaults infrastructure to the forefront of BlackRock’s alternatives platform. Expect heightened focus and more resources dedicated to infrastructure deals in the future.

With the Fed lifting rates this year, BlackRock also has a short-term revenue boost at its back. Higher interest rates allow BlackRock to charge more for managing cash and fixed income, its largest assets. BlackRock’s 8% increase in fourth quarter earnings served as an appetizer. The GIP acquisition is the main course in its long-term growth agenda.

Fink Caps Career with Legacy Deal

Larry Fink has run BlackRock since its inception in 1988, guiding it to become the world’s preeminent money manager. But the end of his tenure looms. While no retirement plans have been announced, Fink is 71 years old.

The GIP deal thus shapes up as a culminating move to put his stamp on BlackRock’s future. Shortly after the acquisition was announced, Fink said, “This is one of the most exciting transactions we’ve ever completed.”

What excites Fink and BlackRock is GIP’s expertise, global reach, and the long runway for infrastructure investing. Fink pulled the trigger on a legacy deal that can steer BlackRock’s course beyond when he ultimately steps down.

The acquisition also stirs up increased speculation on who could succeed the respected CEO. As BlackRock makes infrastructure integral to its future, the deal elevates infrastructure veterans like GIP Chairman Bayo Ogunlesi. COO Rob Kapito and President Rob Goldstein also see their standing boosted.

While the stock dipped slightly on Friday’s news, the deal primes BlackRock for sustainable growth. Shareholders will be monitoring the integration, but early reviews applaud Fink and BlackRock for their foresight and ability to execute.

Release – Bitcoin Depot Bolsters Expansion Efforts with the Addition of 13 New Sales Representatives Throughout the U.S.

Posted on by [email protected]

Research News and Market Data on BTM

January 11, 2024 8:30 AM EST

Expanded Sales Team Will Prioritize Strategic Expansion as Bitcoin Depot Prepares for Continued Nationwide Growth to Increase Kiosk Installations and Strengthen Nationwide Access to Bitcoin

ATLANTA, Jan. 11, 2024 (GLOBE NEWSWIRE) — Bitcoin Depot (“Bitcoin Depot” or the “Company”) (NASDAQ: BTM), a U.S.-based Bitcoin ATM operator and leading fintech company, today announced the expansion of its workforce with the hiring of more than a dozen new sales representatives. These new team members are strategically located across the United States, including Hawaii and Puerto Rico, underscoring Bitcoin Depot’s commitment to nationwide growth and Bitcoin ATM (“BTM”) accessibility.

Bitcoin Depot expects each sales representative to play a pivotal role in the Company’s aggressive expansion strategy during 2024. Once fully engaged, the representatives are anticipated to secure roughly 100-200 new Bitcoin Depot kiosk locations on a monthly basis with the goal of expanding the number of installed BTMs by the end of 2024 to a record high for Bitcoin Depot.

“We are excited to welcome our new sales team members into the Bitcoin Depot family. Their diverse backgrounds and strategic retail relationships are integral to our mission of making Bitcoin accessible to everyone, everywhere,” said Bitcoin Depot Founder and CEO Brandon Mintz. “Integrating these new team members marks a key milestone in our journey to set a new record in Bitcoin Depot`s installed kiosks. Their dedicated efforts are essential not just for widening our geographical footprint but also for strengthening and deepening our relationships with retailers across the country.”

The new sales hires are part of Bitcoin Depot’s comprehensive growth plan, which focuses on increasing its BTM network and continuing to build a robust pipeline of major regional and national retail partners. This approach reflects the company’s ongoing efforts to make Bitcoin more accessible to the public and to solidify its position as a market leader in the Bitcoin ATM industry.

About Bitcoin Depot
Bitcoin Depot Inc. (Nasdaq: BTM), founded in 2016, is dedicated to bridging the gap between traditional finance and digital currencies. The company offers user-friendly, efficient, and intuitive ways for consumers to convert cash into Bitcoin, enabling access to the broader digital financial system. With a presence in 48 states, Bitcoin Depot operates the largest network of BTMs in North America. Through its innovative services, including thousands of kiosk locations and the BDCheckout product, Bitcoin Depot continues to be at the forefront of fintech advancements. For more information, visit www.bitcoindepot.com.

Contacts:
Investors 
Cody Slach, Alex Kovtun 
Gateway Group, Inc. 
949-574-3860 
[email protected]

Media 
Christina Lockwood, Brenlyn Motlagh, Ryan Deloney 
Gateway Group, Inc.
949-574-3860 
[email protected]

Source: Bitcoin Depot Inc.

Released January 11, 2024

Bit Digital (BTBT) – An Upsized Contract

Posted on by [email protected]


Thursday, January 11, 2024

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Expansion. Before the initial 192 servers representing 1,536 GPUs have all come on-line, Bit Digital announced an expansion of its initial AI contract. Under the terms of the agreement, Bit Digital will supply the customer with computational power from an additional 512 GPUs for a period of three years. The total contract value with the customer for an aggregate of 2,048 GPUs is now worth more than $50 million of annualized revenue to Bit Digital.

New Order. Bit Digital placed a purchase order for 64 servers manufactured by Super Micro Computer, Inc. that are equipped with 512 Nvidia HGX H100 GPUs along with related equipment, which are expected to be delivered to the Company during January 2024.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Bit Digital (BTBT) – December BTC Production Increases 19%

Posted on by [email protected]


Friday, January 05, 2024

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Production. During the month of December, Bit Digital produced 169.5 BTC, a 19% increase compared to the prior month. Active hash rate as of December 31st was approximately 2.52 EH/s, up from 2.25 EH/s as of November 30, 2023, and well on the way to the new goal of  doubling the operating fleet in the Bitcoin mining operations, to approximately 6.0 EH/s, during 2024.

Staking. Bit Digital had approximately 12,752 ETH actively staked in native and liquid staking protocols as of December 31, 2023, down slightly from 12,784 at the end of November. Approximately 12,352 ETH were natively staked and 400 ETH were deployed in liquid staking protocols as of that date. The Company earned a blended APY of approximately 3.67% on its staked ETH position for the month, down from 4.35% in November, and earned aggregate staking rewards of approximately 38.5 ETH.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Bit Digital (BTBT) – Receipt of First Tranche of AI Servers

Posted on by [email protected]


Thursday, December 21, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First Tranche. Yesterday, Bit Digital announced the receipt of the initial batch of servers equipped with Nvidia HGX H100 GPUs from Super Micro Computer, Inc. To date, the Company has received 89 servers which will be shipped and delivered to the datacenter in Iceland by the end of this month, enabling Bit Digital to begin performance under its first AI contract. Bit Digital expects to receive the remaining 103 servers by the first week of January 2024 and subsequently deploy them in Iceland during January 2024.

Upfront Cash. Bit Digital also disclosed that the terms of its AI agreement have been amended such that the Company has now received a three-month prepayment from its customer. With the contract expected to generate some $35 million of annual revenue, this would equate to approximately $9 million, which will help fund the cost of the servers, in our opinion.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Aon Bets $13.4 Billion on Mid-Market Insurance Growth

Posted on by [email protected]

Insurance brokerage and consulting powerhouse Aon (AON) unveiled a definitive agreement on December 20th to acquire middle-market peer NFP in an all-cash $13.4 billion deal. NFP focuses on property and casualty brokerage, benefits consulting, wealth management and retirement plan advisory specifically for mid-sized clients.

The landmark transaction allows Aon to aggressively expand into the lucrative mid-corporation segment amid an economic landscape stoking demand for recession-resistant insurance policies. With NFP expecting 2022 revenues nearing $2.2 billion and a roster of over 7,700 client organizations, the bolt-on acquisition provides Aon a launching pad towards deepening its presence among growth-oriented middle-market enterprises.

Tap Exploding Market for Mid-Sized Firms

Several tailwinds have powered extraordinary growth within insurance brokerages catering to mid-cap corporations. As middle-market companies strive for enhanced risk management oversight amid volatile conditions, they increasingly seek broker partners delivering customized guidance on property/casualty and employee benefits policies.

NFP’s singular mid-market focus perfectly aligns with this surging addressable market. The brokerage brings specialized consulting capabilities around financial, health, and retirement offerings that resonate powerfully among mid-sized organizations. After closing in mid-2024, NFP’s offerings significantly broaden and diversify Aon’s middle-market resources.

The opportunistic move also builds on Aon’s existing relationship with mid-market insurance access point Businessolver. By consolidating NSM Insurance and now NFP, Aon assembles an unrivaled mid-corporation product portfolio spanning risk management, human resources, payroll, and compliance functionality.

Betting on Consistent Insurance Demand

Aon’s bold acquisition reflects confidence that commercial insurance spending will continue rising despite recessionary warnings. Employer-sponsored health plans, property policies, casualty coverage, and other risk transfer solutions retain fundamental necessity for corporations of all sizes. With mid-sized companies facing substantial human capital and operational exposures, brokerages like NFP and Aon constitute trusted partners for navigating complex risk landscapes.

The sector’s recession resilience and anti-cyclical behaviors produce reliable revenues amid broader economic uncertainty. Aon has witnessed only one year of revenue declines over the past decade. The industry giant averaged yearly sales growth of 8.4% since 2013.

Strategic Growth Play

From a financial perspective, NFP dramatically strengthens Aon’s growth trajectory. Adding the brokerage’s high-single-digit annual revenue gains provides immediate scale. In an investor presentation, management projected total company sales expansion of 8% in 2024 and 14% in 2025 post-acquisition. Significant cross-selling opportunities and global expansion of NFP’s capabilities should spur ongoing upside.

Aon expects to realize $150 million in cost synergies by 2025. The combination presents chances to eliminate redundant corporate structures and leverage joint capabilities in technology, data analytics and digitization to drive efficiency gains. Ensuing margin expansion would magnify bottom-line profit growth produced by the increased revenues.

Although the transaction costs require $7 billion in new debt, NFP is projected to start contributing towards deleveraging by 2025. While 2024 margins may compress initially, management reinforced commitment towards long-term margin expansion. From 2013-2021, Aon’s margins grew from 16.4% to record 35.7% levels.

Risks and Costs

Despite projected profitability gains, Aon’s stock dropped nearly 8% on the announcement as shareholders weigh risks around significant integration costs and execution challenges. Management forecasts $400 million in one-time transaction and integration expenses associated with consolidating the sizable acquisitions.

There are additionally risks tied to client retention. As occurred with some Willis Towers Watson customers after Aon’s failed merger attempt in 2021, certain NFP accounts may reevaluate relationships depending on changes in account management or service model adjustments.

Overall, however, investor reception remains positive. The deal continues an active era defined by transformative combinations as large brokers fight for differentiation. Aon has now spent nearly $30 billion on M&A to distinguish its portfolio. Adding NFP crucially now arms the brokerage giant to increasingly capitalize on lucrative mid-market tailwinds in coming years.

Watch AON’s NobleCon19 presentation: Cybersecurity – Is Your C-Suite Ready for 2024?

Bit Digital (BTBT) – November Production Numbers Released

Posted on by [email protected]


Thursday, December 07, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Increasing Production. During November, Bit Digital produced 142.7 BTC, a 24% increase from 111.6 BTC last month. The increase was primarily driven by the increase in the Company’s active hash rate, which was at 2.25 EH/s as of November 30, 2023 compared to 2.0 EH/s last month, and Bit Digital did not experience any maintenance outages.

Staking. Over on the staking side, Bit Digital had approximately 12,784 ETH actively staked in native and liquid staking protocols as of November 30, 2023. Approximately 12,384 ETH were natively staked and 400 ETH were deployed in liquid staking protocols as of that date. The Company earned a blended APY of approximately 4.35% on its staked ETH position for the month, and earned aggregate staking rewards of approximately 44.93 ETH.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Bit Digital (BTBT) – Finalized AI Contract

Posted on by [email protected]


Tuesday, November 28, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Contract. Last week, Bit Digital announced details regarding its first Bit Digital AI contract. Under the terms of the agreement, Bit Digital will supply the customer with computational power from 1,504 GPUs for a period of three years. The contract will commence January 2024 and represents more than $35 million of annualized revenue to Bit Digital.

Platform. To fulfill the contract, the Company placed a purchase order for servers manufactured by Super Micro Computer, Inc., an authorized Nvidia OEM, that are equipped with 1,504 Nvidia HGX H100 GPUs along with related equipment, which are expected to be delivered to the Company by January 2024.


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