Why Bit Digital Stock Is Surging

July 8th, 2025 by Trefis Team
BTBT: Bit Digital logo
BTBT
Bit Digital

Bit Digital (NASDAQ:BTBT) stock surged nearly 18% on Monday and remains up more than 68% over the past week. The company, which initially focused on Bitcoin mining with large-scale infrastructure, has since transitioned into offering Ethereum treasury and staking services, operating one of the largest ETH staking infrastructures for institutional clients. The recent gains come as Bit Digital pivoted its corporate treasury strategy from Bitcoin to Ether, using $172 million raised via a public offering and proceeds from Bitcoin sales to acquire roughly 100,000 ETH. This makes Bit Digital the second-largest corporate holder of ETH, behind crypto exchange major Coinbase.

So what likely drove this pivot?  The strategy appears to be driven by Ethereum’s broader utility as a programmable blockchain powering decentralized applications and smart contracts. Holding ETH is essential for participating in the Ethereum network’s economic opportunities, as it serves both as the native currency for transaction fees and as a staking asset that secures the network and earns rewards.

Image by WorldSpectrum from Pixabay

Is BTBT Stock Attractive?

Relevant Articles
  1. What’s Behind The 86% Surge in Wheaton Stock?
  2. Why Has Barrick Mining Stock Surged 154%?
  3. What Could Send Pfizer Stock Soaring
  4. What Can Trigger Intel Stock’s Slide?
  5. Cash Machine Trading Cheap – Iridium Communications Stock Set to Run?
  6. 3M Stock vs. Honeywell Stock: Which Is A Better Investment?

So, do recent developments make BTBT stock attractive? Investors should remain cautious. Despite the excitement, Bit Digital’s market cap stands at around $1 billion, making it a small-cap stock prone to higher volatility. In terms of valuation, BTBT trades roughly in line with the broader market, with a price-to-sales ratio of 4.0, compared to 3.1 for the S&P 500. That said, growth has been impressive. Revenue has expanded at an average annual rate of 63% over the last three years, far outpacing the S&P 500’s 5.5%, and has surged 136.6% over the past 12 months, from $67 million to $159 million.

However, profitability remains a concern, with an operating margin of just 14.6% over the last four quarters. The stock has also shown poor resilience during market downturns, underperforming the S&P 500 in recent pullbacks. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.

While you might do well to exercise caution with BTBT stock for now, you could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.

Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates