Tag: Capital Markets

Bit Digital (BTBT) – A Look into the First Quarter

Posted on by cpereira@noblefcm.com


Thursday, May 16, 2024

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.

Guided by AI. Total revenue for the Company grew 266% y-o-y, driven by higher realized bitcoin price and from the Company’s AI business. The Company recognized $8.1 million of revenue during the quarter and reported a gross margin of 61%. With the potential increase of the segment’s AI contract earlier in the year, we expect the performance of the segment to rival its mining revenue in the coming quarters.

Mining Side. Bit Digital’s bitcoin mining revenue was $21.9 million, a 168% increase from the previous year, as a higher hash rate coupled with the higher bitcoin price drove the revenue. As noted in our previous report, the active hash rate was 2.76 EH/s as of April 30, 2024. The Company has a total of 48,898 miners owned or operating for a total maximum hash rate of 4.2 EH/s. We believe the Company is well on its way towards its active hash goal of 6.0 EH/s.


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. 

Bitcoin Depot (BTM) – Planting the Seeds For Attractive Revenue Growth

Posted on by cpereira@noblefcm.com


Wednesday, May 15, 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.

A transitional quarter. The company reported Q1 revenue of $138.5 million, down 15% year over year, but beating our estimate of $134.7 million. Adj. EBITDA in the quarter was $4.9 million, higher than our estimate of $4.0 million. The results reflected redeployment of kiosks and lowered results in California due to unfavorable legislation. 

Favorable kiosk growth. We believe that the company is setting the stage for accelerated revenue and cash flow growth through the deployment of kiosks. In Q1, the company increased the number of deployed kiosks by roughly 700. Post Q1, the company announced the purchase of approximately 2,300 Bitcoin kiosks at a sizeable discount of roughly 50% per-kiosk. The purchase brings the number of kiosks owned by the company to over 10,000, of which 7,061 were deployed, as of the end of Q1. 


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) – April Production Numbers Released

Posted on by cpereira@noblefcm.com


Tuesday, May 07, 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.

Bitcoin Mining. For the month of April, Bit Digital produced 119.3 BTC, a 12.5% decrease from last month’s 136.4 BTC. The decrease was primarily due to the reduction of bitcoin block rewards post-halving, which we believe we’ll continue to see a lower production rate until more miners are potentially up and running. The active hash rate was approximately 2.76 EH/s as of April 30, 2024, compared to 2.73 EH/s last month.

AI and ETH Staking. Bit Digital had 251 servers running on its AI contract and earned an estimated $4.1 million in unaudited revenue during the month. The Company had approximately 17,184 ETH actively staked in native staking compared to 3,008 ETH last month. This is due to the Company changing providers last month for its native staking solutions. The Company earned a blended APY of approximately 1.0% on its staked ETH position versus 2.8% last month, with the decrease due to the lag time in redeploying its staked ETH after changing providers.


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. 

Bitcoin Depot (BTM) – Seizing an Opportunity

Posted on by cpereira@noblefcm.com


Monday, April 22, 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.

Opportunistic kiosk purchase.  On April 18, the company announced the purchase of roughly 2,300 Bitcoin kiosks at a discount of approximately 50% per-kiosk. Notably, the company plans to deploy the majority of these kiosks over the next two quarters. Once all the kiosks from the recent purchase are delivered, the company will have over 10,000 kiosks deployed, ahead of our previous expectations. We view the announcement favorably.

Sizeable profit-share investment. On April 12, the company announced an outside firm made a multi-million dollar investment in 250 Bitcoin kiosks as part of the company’s profit sharing (or franchising) program. Notably, the kiosks will be operated by the company and a percentage of profits will be paid out to participants. The agreement provides an option for additional investment of up to 750 kiosks.


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) – The ‘Halving’ Commences

Posted on by cpereira@noblefcm.com


Monday, April 22, 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.

The Event. On Saturday, April 20th, 2024, the ‘halving’ event commenced with BTC. With the event, all miners will earn half of the mining rewards compared to before. According to CoinDesk, the event also brought higher transaction fees at $2.4 million for the ‘halving’ block compared to $40,000-$60,000 from before. The increased fees are partially attributed to network congestion from the launch of a new protocol, Runes. The protocol allows users to “etch” or mint tokens on the blockchain. The price of BTC decreased slightly to just under $64,000 on Saturday from roughly $65,490 last month.

What is the ‘Halving?’ Recall, the ‘halving’ occurs approximately every four years, in which the reward rate of bitcoin is halved. The reward rate is now at 3.125 BTC per block from a previous 6.25. These events will continue to occur until all potential 21 million bitcoin have been mined.


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. 

Bitcoin Depot (BTM) – Expansion Ahead of Schedule

Posted on by cpereira@noblefcm.com


Monday, April 08, 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.

International expansion. The company recently announced its plans to ship 125 kiosks to Australia’s largest cities, Sydney, Melbourne and Brisbane, in Q2 2024. Notably, we believe there is a sizeable opportunity for growth in Australia, which has a population of approximately 27 million people, and less than 1000 Bitcoin ATM’s in the entire county. In addition to Australia, the company expanded to Puerto Rico in March, adding 87 kiosks.

Franchise opportunities. In our view, the company should benefit from franchising, which offers the company a capital efficient method to expand operations. Notably, the company captures roughly 30%-50% of profits from franchise locations with virtually no capital committed. We view the relatively new franchise program favorably.


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) – A Slight Improvement in March

Posted on by cpereira@noblefcm.com


Thursday, April 04, 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.

Mining Business. Bit Digital produced 136.4 BTC during the month of March, a 6% increase from 128.7 BTC in the month of February. The active hash rate for the Company was 2.76 EH/s compared to 2.73 EH/s last month. We believe the Company is still on track towards its active mining fleet goal of 6.0 EH/s by the end of 2024.

Staking Side and AI. Approximately 3,008 ETH was actively staked in native staking protocols as of March 31, 2024. This is a decrease from the 12,384 natively staked last month due to the Company changing its provider for native staking solutions. The Company earned a blended APY of approximately 2.8% on its staked ETH during the month and earned aggregate staking rewards of approximately 29.0 ETH. As of March 31, 2024, the Company had 251 servers actively generating revenue on its AI contract, with an estimated $4.3 million of revenue earned during the month.


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) – Potential Expansion of AI Contract

Posted on by cpereira@noblefcm.com


Wednesday, March 27, 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.

More GPUs. Yesterday, Bit Digital received a proposal from the Company’s existing customer in Bit Digital AI to expand the scope of its agreement. The proposal calls for an additional 2,048 GPUs, amounting to a total of 4,096 GPUs under the amended agreement. Management intends to accept the proposal, subject to agreement on certain terms and conditions.

Revenue Potential. The current contract before the potential upsize has an annualized revenue run-rate of $50 million. If the proposal is fully realized, the Company would be close to, or meet, its goal of $100 million of annualized revenue by the end of 2024, in our view. Recall, management noted an additional $60 million of capital would be needed to get to the $100 million target through acquiring the necessary GPUs, based on current market conditions.


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. 

Bitcoin Depot (BTM) – A Set Up Year For Future Growth

Posted on by cpereira@noblefcm.com


Tuesday, March 26, 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.

Q4 results. For Q4 the company reported $148.4 million in revenue, below our forecast of $157.0 million and roughly flat compared to the prior year period. Adj. EBITDA  for the quarter was $9.0 million, which was in line with our estimate. The softer than expected revenue was largely driven by the company’s redeployment of kiosks. Notably, we believe the company’s favorable redeployment efforts could improve operating results in the long-run.

Expansion strategy. Management highlighted franchising as a favorable option for expansion. Notably, franchising offers the company a less capital intensive method for expansion, which captures approximately 30%-50% of profits from licensed kiosks. Additionally, management views New York as a significant opportunity for growth, and is currently in the application process to obtain a license to operate in the state.


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) – Being More Diversified

Posted on by cpereira@noblefcm.com


Wednesday, March 20, 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.

Diversification Heading into 2024. The Company’s fiscal year 2023 saw the company expand its bitcoin miners and change from ETH mining to native and liquid staking. Most importantly, during the fall of 2023, management announced a new segment, Bit Digital AI, to provide digital infrastructure services, including GPU rental services. With the AI business line, Bit Digital has recurring revenue that gives the Company stability in times of volatility with BTC and ETH prices, in our view.

BTC Mining and ETH Staking. For the year, the Company earned 1,507.3 bitcoins, a 21% increase from last year driven by a higher active hash rate partially offset by an increase in network difficulty. The average fleet efficiency for the active fleet was approximately 28.8 J/TH as of December 31, 2023. The Company earned 287.0 ETH in native staking and 81.9 ETH in liquid staking for the year.


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) – First Look at Fourth Quarter Results

Posted on by cpereira@noblefcm.com


Tuesday, March 19, 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.

4Q Results. Fourth quarter revenue was $16.1 million, above last year’s revenue of $7.8 million and above our estimate of $13 million. The Company realized a gain of $8.6 million on its digital assets during the quarter. Net loss for the quarter was $2.0 million, or about $0.02 per share, versus last year’s net loss of $68.7 million, or $0.87 per share. The large improvement was due to a $50 million asset impairment the Company incurred last year that did not repeat. Adjusted EBITDA for the quarter was $11.9 million compared to a negative $8.0 million in the prior year.

Fiscal Year Results. Revenue for 2023 was $44.9 million, an increase of 39% from the previous year’s $32.3 million. Net loss for the year was $13.9 million, or $0.16 per share, an improvement of $91.4 million from the prior year’s loss of $105.3 million, or $1.34 per share. Adjusted EBITDA for the year was $12.4 million compared to a negative $26.9 million last year.


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) – February Production

Posted on by cpereira@noblefcm.com


Wednesday, March 06, 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.

BTC Mining. Bit Digital produced 128.7 BTC during the month of January, a 11.7% decrease from 145.7 BTC in the prior month. An increase in network difficulty, modest decrease in transaction fees, and fewer days in the month were causes of the decrease. The Company’s active hash rate was approximately 2.73 EH/s compared to 2.50 EH/s. The Company is on its way towards the active mining fleet goal of around 6.0 EH/s during 2024, in our view.

ETH Staking and AI. The Company had approximately 12,784 ETH actively staked, flat last month, with approximately 12,384 ETH natively staked and 400 ETH deployed in liquid staking. Bit Digital earned a blended APY of approximately 4.4% compared to 3.69% last month, and earned aggregate staking rewards of approximately 43.4 ETH. Bit Digital’s AI contract earned an estimated $4.0 million of unaudited revenue during the month.


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) – January Production Numbers Released

Posted on by cpereira@noblefcm.com


Wednesday, February 07, 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.

BTC Mining. Bit Digital produced 145.7 BTC during the month of January, a 14% decrease from 169.5 BTC in the prior month. Increases in both transactions fees and network difficulty were the main reasons for the decrease. The Company’s active hash rate was approximately 2.50 EH/s compared to 2.52 EH/s. With the recent hosting agreement, we expect an increase in the hash rate next month.

ETH Staking. The Company had approximately 12,784 ETH actively staked, up slightly from 12,752 ETH staked last month, with approximately 12,384 ETH natively staked and 400 ETH deployed in liquid staking. Bit Digital earned a blended APY of approximately 3.69% compared to 3.67% last month, and earned aggregate staking rewards of approximately 38.7 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.