Why Are Bitcoin Company Bit Digital Shares Shooting Higher Wednesday?
Portfolio Pulse from Nabaparna Bhattacharya
Shares of Bit Digital, Inc. (NASDAQ:BTBT) are surging in premarket trading after the company announced plans to double its Bitcoin mining operations to approximately 6.0 EH/s by 2024. Bit Digital produced 142.7 BTC in the last month, a 24% increase from the previous month, and earned 44.93 ETH in staking rewards. The company has started receiving servers equipped with NVIDIA Corporation's (NASDAQ:NVDA) HGX H100 GPUs from Super Micro Computer, Inc. (NASDAQ:SMCI), with more expected to be deployed in Iceland by January 2024. Bit Digital also anticipates $35-37 million in revenue from its first AI business customer in 2024. The company's Q3 2023 revenue was $11.6 million, mainly from Bitcoin mining. BTBT shares rose 5% to $4.410 in premarket trading.
December 27, 2023 | 12:57 pm
News sentiment analysis
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POSITIVE IMPACT
Bit Digital plans to expand its Bitcoin mining operations, has seen a significant increase in BTC production, and anticipates substantial revenue from its AI business in 2024.
The positive news about expansion plans and increased BTC production is likely to be viewed favorably by investors, potentially leading to a short-term increase in BTBT's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
NVIDIA Corporation's GPUs are being used in Bit Digital's new servers, indicating a continued relationship and potential for increased sales.
The mention of NVIDIA's GPUs in Bit Digital's servers may reflect positively on NVIDIA's business, suggesting potential growth in sales to the crypto mining sector.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Super Micro Computer is supplying servers with NVIDIA GPUs to Bit Digital, indicating a business relationship and potential revenue from these sales.
The delivery of servers to Bit Digital could mean an increase in revenue for Super Micro Computer, as it is the supplier of the hardware being used in Bit Digital's expansion.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70