Bit Digital (BTBT 15.26%) stock is sinking in Friday’s trading. The company’s share price was down 17.6% as of 12:35 p.m. ET in a bearish day of trading for the broader market. At the same point in the session, the S&P 500 was down 1%, and the Nasdaq Composite was down 1.2%.
After the market closed yesterday, Bit Digital published its first-quarter results. Revenue for the period came in higher than the average Wall Street analyst target, but the business recorded another large loss in the quarter.
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Bit Digital sinks despite Q1 revenue beat
Bit Digital’s revenue increased roughly 11% year over year to reach $27.9 million in the first quarter, outperforming the average Wall Street analyst estimate by roughly $2.9 million. While the company’s net loss narrowed to $146.7 million in the quarter from $185.3 million in the prior-year period, the business still served up bold red ink in Q1. Sales in the quarter were down 13.6% year over year amid lower cloud-services revenue, lower revenue from staking Ethereum (ETH 1.63%), and lower crypto mining revenue.
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What’s next for Bit Digital?
The performance outlook for Bit Digital stock seems to come down to two core catalysts. For starters, the company holds a large stake in Ethereum — and the value of the stock will naturally see moves in conjunction with pricing trends for Ethereum. The company is also making a pivot away from crypto mining and toward using its compute power to provide artificial intelligence (AI) services. While this looks like a promising move, there is still significant execution risk involved.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.
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