The firm shows a Beta (market volatility) of 3.1364, which signifies a somewhat significant risk relative to the market. Let's try to break down what Bit Digital's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Bit Digital will likely underperform. Even though it is essential to pay attention to
Bit Digital historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Bit Digital exposes twenty-seven different technical indicators, which can help you to evaluate its performance.
Bit Digital has an expected return of -0.24%. Please be advised to confirm Bit Digital
value at risk, as well as the
relationship between the skewness and
day median price to decide if
Bit Digital performance from the past will be repeated at some point in the near future.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Bit Digital income statement, its balance sheet, and the statement of cash flows. Potential Bit Digital investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Bit Digital investors may use each financial statement separately, they are all related. The changes in Bit Digital's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bit Digital's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Bit Digital
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Bit Digital performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Bit Digital shares is the value that is considered the true value of the share. If
the intrinsic value of Bit is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Bit Digital. Please read more on our
fundamental analysis page.
How effective is Bit Digital in utilizing its assets?
Bit Digital reports assets on its Balance Sheet. It represents the amount of Bit resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Bit Digital aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Application Software space. To get a better handle on how balance sheet or income statements item affect Bit volatility, please check the breakdown of all its
fundamentals.
Are Bit Digital Earnings Expected to grow?
The
future earnings power of Bit Digital involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Bit Digital factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Bit Digital
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Bit
expected earnings.
Bit Digital Gross Profit
Bit Digital Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Bit Digital previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Bit Digital Gross Profit growth over the last 10 years. Please check Bit Digital's
gross profit and other
fundamental indicators for more details.
Breaking down Bit Digital Further
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Bit Digital is not uncomon. Institutional investor usually refers to an organization that invests money in Bit Digital on behalf of clients or other money managers. Buying and selling of large positions of Bit Digital stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Bit Digital stock. Let's take a look at how the ownership of Bit Digital is distributed among investors.
Ownership Allocation
Bit Digital retains a total of 51.1 Million outstanding shares. Bit Digital retains significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors60.28% | Insiders20.38% | Institutions19.34% |
| Retail Investors | 60.28 |
| Insiders | 20.38 |
| Institutions | 19.34 |
| 2020 | 2021 (projected) |
Book Value per Share | 1.24 | 1.27 | Asset Turnover | 1.09 | 1.07 |
Asset Utilization
One of the ways to look at asset utilization of Bit Digital is to check how much profit was generated for every dollar of assets it reports. Bit Digital utilizes its assets nearly 38.8 percent, earning $0.39 for each dollar of assets held by the firm. A positive asset utilization signifies that the company is slightly more effective with each dollar of assets it shows. Put another way, asset utilization of Bit Digital shows how effective it operates for each dollar spent on its assets.
| Current Assets | 7.36 Million | 17.79 |
| Assets Non Current | 33.64 Million | 81.3 |
| Tax Assets | 375,115 | 0.91 |
Another small drop for Bit Digital
The value at risk is down to -9.85 as of today.
As of the 22nd of December, Bit Digital shows the
mean deviation of 5.55, and Risk Adjusted Performance of 0.0047. Bit Digital
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We have analyzed nineteen
technical drivers for Bit Digital, which can be compared to its rivals. Please confirm
Bit Digital variance,
value at risk, as well as the
relationship between the Value At Risk and
skewness to decide if Bit Digital is priced correctly, providing market reflects its regular price of 6.7 per share. Given that Bit Digital has
jensen alpha of
(0.24), we suggest you to validate Bit Digital's prevailing market performance to make sure the company can sustain itself at a future point.
Our Conclusion on Bit Digital
Whereas some companies in the software—application industry are either recovering or due for a correction, Bit Digital may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither take in new shares of Bit Digital nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Bit Digital.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Bit Digital. Please refer to our
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