Tag: Capital Markets

Tuesday, April 15, 2025

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

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

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

New Tier 3 Site. Bit Digital announced that it has secured the rights to a new data center site in Saint-Jérôme, Québec (to be known as Montreal-3). This site, which is under development, will support the previously announced 5MW colocation agreement with Cerebras Systems, a leader in generative AI infrastructure.

Details. The facility spans approximately 202,000 square feet on 7.7 acres. In addition to the current Cerebras agreement, the facility has future expansion potential, subject to utility approvals. The transaction was executed under a lease-to-own structure, which includes a fixed-price purchase option exercisable within 12 months. The lease term is 20 years, with two 5-year extension options. The facility is being retrofitted to Tier 3 standards. Bit Digital expects development costs to total approximately CAD $55 million (approximately $40MM USD), and a targeted go-live date of July 2025.

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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. 

Tuesday, March 18, 2025

Joe Gomes, CFA, 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.

4Q Results. Total revenue for the quarter was $26.1 million, as the HPC business added $14.4 million from last year. We estimated revenue of $29.6 million. Higher G&A and D&A costs partially offset a $43.4 million digital asset gain, resulting in an operating income of $28.8 million. Net income was $29.0 million from $17,700 a year ago. Adjusted EBITDA was $40.1 million from $14.0 million last year.

Pipeline Building Up. Management noted that demand has surged for the B200 GPUs, and with the introduction of DeepSeek, customers are also in demand of the H100 and H200 GPUs. Furthermore, the Company’s data center pipeline has expanded to 510MW from 288MW last quarter. With the increase in demand and management in active discussions with potential customers, we expect more agreements to be announced sooner rather than later.

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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).Bit Digital (BTBT) – Building on its Pipeline

*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. 

Tuesday, February 11, 2025

Joe Gomes, CFA, 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.

Agreement in Place. Yesterday, Bit Digital announced it secured a colocation contract through WhiteFiber, its newly rebranded HPC business, and an unnamed client. Under the agreement, the Company will provide 5MW of built-to-suit data center infrastructure for a period of five years. The Company anticipates the contract to commence in mid-2025. No financial terms of the agreement were disclosed.

Potential Financial Impact. While no financial terms were given in the announcement, based on Enovum’s current 4MW colocation data center producing $7.2 million in revenue annually, the new agreement could generate roughly $9 million in additional revenue if the terms are similar. We expect a $5-$5.6 million impact for annualized EBITDA based on the $4-$4.5 million from the initial data center.

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. 

Monday, February 10, 2025

Joe Gomes, CFA, 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.

GPU Cloud Business. The Company earned approximately $4.4 million in revenue from AI contracts during the month of January 2025. Bit Digital had 268 servers (2,144 GPUs) actively generating revenue from its Bit Digital AI contracts. In addition, the Company received $131,000 in cash payments from its equipment leasing contract with Boosteroid during the month.

Colocation Services Business. Bit Digital’s HPC data center colocation revenue was approximately CAD $757.8k (approximately USD $522.9k) in January. The Company had 14 customers actively generating revenue at its Tier-3 Enovum Data Center as of month’s end. Bit Digital has rebranded its HPC business as WhiteFiber, Inc., encompassing the Company’s GPU Cloud business and its HPC data center business.

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. 

Monday, January 27, 2025

Joe Gomes, CFA, 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.

New Contract. Last Friday, Bit Digital announced a new agreement with its anchor customer in the GPU Cloud portion of its HPC business. The new 464 Nvidia B200 GPUs contract replaces a prior agreement to provide 2,048 H100 GPUs. The contract represents approximately $15 million of annualized revenue and features a two-month prepayment from the customer. While the new agreement reduces annualized revenue from what the Company anticipated last year (roughly $50 million), management is exploring additional contracts with the customer, which we are hopeful, when combined, will at least rise to the originally expected contract level.

Additional Terms. Under the new agreement, Bit Digital will provide the customer with 58 B200 servers (464 GPUs) for 18 months. Furthermore, the customer may deduct 100% of the service fees from the previously paid $30 million non-refundable deposit. 

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. 

Research News and Market Data on BTBT

NEW YORK, January 24, 2025 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Company”), a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York, today announced a new agreement with a key customer for 464 Nvidia B200 GPUs, expanding its GPU Cloud business. This new agreement replaces a prior agreement whereby the Company was to provide the customer with an incremental 2,048 H100 GPUs and the Company continues to explore additional GPU contracts with this customer for 2025.

Under the terms of the agreement, Bit Digital will provide the customer with 58 Nvidia B200 servers (464 GPUs) for a period of eighteen months. The contract represents approximately $15 million of annualized revenue for Bit Digital and features a two-month prepayment from the customer. However, the customer may deduct 100% of the service fees from the $30 million non-refundable deposit previously paid to the Company. The contract is scheduled to commence on June 30^th, 2025, and the GPUs will be deployed in Iceland. To fulfill the contract, Bit Digital has placed an order for 58 Nvidia B200 servers for approximately $21MM which are expected to be delivered well in advance of the service commencement date. Bit Digital intends to finance the purchase with cash and customer deposits and intends to retain complete ownership of the servers.

Sam Tabar, CEO of Bit Digital, commented: “We are pleased to have reached this agreement with a key customer. This contract delivers significantly improved margins compared to the original plan, which included a sale-leaseback agreement for a portion of the deployment. We look forward to exploring additional new business with this customer for 2025 while remaining focused on execution.”

About Bit Digital

Bit Digital, Inc. is a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York City. Our operations are located in the US, Canada, and Iceland. For additional information, please contact ir@bit-digital.com or visit our website at www.bit-digital.com.

Investor Notice 

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 3.D of our Annual Report on Form 20-F for the fiscal year ended December 31, 2023 (“Annual Report”). Notwithstanding the fact that Bit Digital Inc. has not conducted operations in the PRC since September 30, 2021 we have previously disclosed under Risk Factors in our Annual Report: “We may be subject to fines and penalties for any noncompliance with or any liabilities in our former business in China in a certain period from now on.” Although the statute of limitations for non-compliance by our former business in the PRC is generally two years and the Company has been out of the PRC, for more than two years, the Authority may still find its prior bitcoin mining operations involved a threat to financial security. In such event, the two-year period would be extended to five years. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Future changes in the network-wide mining difficulty rate or bitcoin hash rate may also materially affect the future performance of Bit Digital’s production of bitcoin. Actual operating results will vary depending on many factors including network difficulty rate, total hash rate of the network, the operations of our facilities, the status of our miners, and other factors. See “Safe Harbor Statement” below.

Safe Harbor Statement 

This press release may contain certain “forward-looking statements” relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Friday, January 10, 2025

Joe Gomes, CFA, 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.

HPC/AI Side. At year-end, Bit Digital had 266 servers actively generating revenue from its Bit Digital AI contracts and earned approximately USD $4.5 million of total unaudited GPU Cloud revenue during the month of December. In addition, $177k in revenue from the Boosteroid contract was recognized. The Company’s HPC data center colocation revenue was approximately CAD $757.8k (approximately USD $528.1k) and had 14 customers generating revenue at the Enovum Data Center facility as of December 31, 2024.

Mining. The Company produced 32.4 BTC in December, a 27.8% decrease from 44.9 BTC last month due to changes in the Company’s hosting portfolio, ongoing redeployment of mining assets to new sites, and the retirement of older generation miners. The active hash rate was roughly 1.8 EH/s, a decline from 2.51 EH/s last month due to the reasons mentioned earlier. During the month, 941 S21 miners were purchased for $3.2 million, with the Company selling 4,506 S19 mining units for approximately $836.6k. We expect the hash rate to climb back up as the Company redeploys its new and current miners to new sites.

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. 

Thursday, January 02, 2025

Joe Gomes, CFA, 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.

MSA Underway. On Tuesday, Bit Digital announced the execution of an MSA with an AI Compute Fund managed by DNA Holdings Venture Inc., a new client. The MSA execution builds on the term sheet signed and disclosed on November 20, 2024. The contract provides for 576 Nvidia H200 GPUs over a two-year term and represents an aggregate revenue opportunity of roughly $20.2 million, or $10.1 million annually, and is expected to commence February 2025.

GPUs Ordered. To fulfill the contract, Bit Digital will use GPUs that are currently on order and awaiting delivery to a third-party data center in Iceland. Earlier in December, the Company ordered 130 H200 servers (or 1,040 GPUs) for approximately $30 million. Of those servers, 72 of them will be supplied to the customer, and management expects to deploy the remainder of the servers to separate customer contracts.

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. 

Research News and Market Data on BTBT

NEW YORK, December 31, 2024 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Company”), a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York, announced today that it has executed an MSA with a new client, an AI Compute Fund managed by DNA Holdings Venture Inc., which provides for 576 Nvidia H200 GPUs over a two-year term. The contract represents an aggregate revenue opportunity of approximately $20.2 million for Bit Digital and is expected to commence in February 2025.

This announcement builds on the term sheet previously signed and disclosed on November 20, 2024. Under the terms of the deal, Bit Digital will supply the customer with 72 H200 servers (576 GPUs) for an initial two-year term. Bit Digital will fulfill the contract with GPUs that are currently on order and awaiting delivery to a third-party data center in Iceland. Earlier this month, Bit Digital placed a purchase order for 130 H200 servers (1,040 GPUs) for approximately $30 million. The Company anticipates deploying the remainder of those GPUs to separate customer contracts.

Sam Tabar, Bit Digital’s CEO, commented: “We are thrilled to formalize our partnership with DNA Fund. This strategic collaboration underscores our commitment to delivering high-performance computing solutions tailored to our clients’ evolving needs.

This contract is a meaningful step toward achieving our long-term growth objectives. While we now expect to reach our $100MM annualized revenue run-rate goal for our HPC business in early 2025, this timeline reflects a deliberate strategy to prioritize high-quality revenue opportunities and disciplined capital management. As we navigate a significant chip upgrade cycle, we have been selective about the deals we pursue, focusing on the right customers, favorable terms, and pricing. This approach enables us to mitigate residual value risk while maintaining the financial flexibility needed to support our data center expansion and next-generation GPU investments.

With a robust balance sheet and a strong pipeline of opportunities, we remain confident in our ability to achieve sustained growth and strengthen our leadership position in the HPC market.”

About DNA Fund

DNA Holdings Venture Inc. aims to spearhead the next wave of financial innovation by seamlessly integrating Web 3, cryptocurrency, artificial intelligence, and capital markets. DNA’s mission is to create a financial ecosystem that delivers cutting-edge fund management, strategic advisory services, and visionary financial solutions. By leading this technological and financial convergence, DNA Holdings empowers emerging brands to architect the future of finance, transforming the global economy and reshaping the world of capital markets. For additional information please contact investors@dna.fund or www.dna.fund.  For information on investing in DNA Funds please visit DNADealDesk.com

About Bit Digital

Bit Digital, Inc. is a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York City. Our bitcoin mining operations are located in the US, Canada, and Iceland. For additional information, please contact ir@bit-digital.com or visit our website at www.bit-digital.com.

Investor Notice 

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 3.D of our Annual Report on Form 20-F for the fiscal year ended December 31, 2023 (“Annual Report”). Notwithstanding the fact that Bit Digital Inc. has not conducted operations in the PRC since September 30, 2021 we have previously disclosed under Risk Factors in our Annual Report: “We may be subject to fines and penalties for any noncompliance with or any liabilities in our former business in China in a certain period from now on.” Although the statute of limitations for non-compliance by our former business in the PRC is generally two years and the Company has been out of the PRC, for more than two years, the Authority may still find its prior bitcoin mining operations involved a threat to financial security. In such event, the two-year period would be extended to five years. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Future changes in the network-wide mining difficulty rate or bitcoin hash rate may also materially affect the future performance of Bit Digital’s production of bitcoin. Actual operating results will vary depending on many factors including network difficulty rate, total hash rate of the network, the operations of our facilities, the status of our miners, and other factors. See “Safe Harbor Statement” below.

Safe Harbor Statement 

This press release may contain certain “forward-looking statements” relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.