Bit Digital Stock Story

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Vlad Skutelnik .  Story
BTBT
 Stock
  

USD 1.85  0.10  5.71%   

By Vlad Skutelnik
Macroaxis Story
Lets try to review the odds of Bit Digital to fully recover from the newest drop as its shares went up 16.39%. This firm current daily volatility is 6.43 percent, with a beta of 3.09 and an alpha of -0.4 over DOW. Whilst many millenniums are getting more into banking, it makes sense to review Bit Digital. We will evaluate if Bit Digital shares are reasonably priced going into July.
Published over a month ago
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Is Bit Digital (NASDAQ:BTBT) a new disruptor?

Bit Digital currently holds about 42.4 M in cash with (23.26 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.58.
The firm shows a Beta (market volatility) of 3.0886, 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-one different technical indicators, which can help you to evaluate its performance. Bit Digital has an expected return of -1.23%. Please be advised to confirm Bit Digital variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Bit Digital performance from the past will be repeated at some point in the near future.
Investing in Bit Digital, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Bit Digital along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Bit Digital's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Bit Digital in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Bit Digital. Your research has to be compared to or analyzed against Bit Digital's peers to derive any actionable benefits. When done correctly, Bit Digital's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Bit Digital.

How important is Bit Digital's Liquidity

Bit Digital financial leverage refers to using borrowed capital as a funding source to finance Bit Digital ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bit Digital financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bit Digital's total debt and its cash.

How does Bit Digital utilize its cash?

To perform a cash flow analysis of Bit Digital, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Bit Digital is receiving and how much cash it distributes out in a given period. The Bit Digital cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Bit Digital Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Bit Digital reported Net Cash Flow from Operations of (23.26 Million) in 2021

Bit Digital Correlation with Peers

Investors in Bit Digital can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Bit Digital. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Bit Digital and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Bit Digital is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Bit Digital for more details

Breaking down Bit Digital Further

Bit Digital secures Sharpe Ratio (or Efficiency) of -0.19, which signifies that the company had -0.19% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Bit Digital exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Bit Digital risk adjusted performance of (0.20), and Mean Deviation of 5.34 to double-check the risk estimate we provide.
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Will Bit Digital growth be reliable after the gain?

Skewness is down to 0.15. It may call for a possible volatility drop. Bit Digital is displaying above-average volatility over the selected time horizon. Investors should scrutinize Bit Digital independently to ensure intended market timing strategies are aligned with expectations about Bit Digital volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bit Digital's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bit Digital's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Bit Digital Implied Volatility

Bit Digital's implied volatility exposes the market's sentiment of Bit Digital stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bit Digital's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Bit Digital stock will not fluctuate a lot when Bit Digital's options are near their expiration.

Whereas other companies under the capital markets industry are still a bit expensive, Bit Digital may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Bit Digital as the current risk-reward utility is not appealing enough. 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.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. 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 Vlad Skutelnik do not own shares of Bit Digital. Please refer to our Terms of Use for any information regarding our disclosure principles.

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