Bit Digital is mostly known as a digital asset miner that originally began mining Bitcoin & Ethereum. After the switch to to a “Proof of Stake” model, the Ethereum mining model became redundant for Bit Digital and the company moved into staking their ETH to earn a yield for validating the Ethereum network while also mining Bitcoin profitably.
Interestingly, the GPUs that were used to mine Ethereum transitioned into a new “High Performance Compute” industry providing cloud-based GPU resources that offers secular high margin growth.
A thriving flywheel has emerged that’s highly accretive to shareholder value in the digital asset side of their business and a powerful growth prospect in HPC service revenue thats currently running at a $92 million annual run-rate offer both high growth and a margin of safety in low valuation for investors.
Let’s get into it!
Content:
Business Model
BTC Mining & ETH Staking Business Flywheel
High Performance Compute Services Business
Valuation & Expectations
Technical Analysis
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