H.C. Wainwright Reiterates Buy Rating on Bit Digital Inc. (BTBT)

H.C. Wainwright analyst Kevin Dede reiterated a Buy rating and $7.00 price target on Bit Digital Inc. (NASDAQ: BTBT).

The analyst commented: "From a fundamental view, it would seem Bit Digital's market capitalization should at least reflect the complete and total value of its assets, perhaps with a future growth-of-business premium added. Of the plethora of newly-minted digital asset treasury (DAT) companies this year, many created in the image of Michael Saylor's original leveraging bitcoin accumulation over a profitable enterprise's cash flow, now find themselves trading in a range below the value of their digital assets alone. As such, the valuation relationship between crypto assets and the public company's market cap has attracted broad contemplation, so much so, we believe, Strive (ASST; not rated) is chasing down in acquisition Semler Scientific (SMLR; not rated) for its bitcoin alone though proposing to pay a 210% premium over its open market value despite Semler trading at an mNAV discount (to its held bitcoin value), and more consolidation should be expected. Typical of our wishy-washiness, we are sidestepping suggesting a comprehensive or quantified justification for digital asset companies' premium or discount to NAV. We see complication across many fronts, most too difficult to assess individually much less in concert, including a collection of variables, some subjective, others swayed by perception and crowd psychology. Regardless, we believe there are aspects worthy of consideration: (1) differentiated underlying businesses within the DAT casing, where many, unfortunately, are not sustainable, hence instigating the crypto treasury pivot. Semler might fall in this bucket. Others, however, might generate cash and support prospective debt payments, improving the company's access to capital. (2) Further, and perhaps more importantly, that underlying business might just be the development work within the blockchain ecosystem in which the company is invested. And many of the leading blockchains offer staking yield, returning capital and creating positive cash flow. We reiterate our Buy rating and $7 price target."

For an analyst ratings summary and ratings history on Bit Digital Inc. click here. For more ratings news on Bit Digital Inc. click here.

Shares of Bit Digital Inc. closed at $3.74 yesterday.

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