7 Most Undervalued Blockchain Stocks To Buy According To Analysts

4. Bit Digital Inc. (NASDAQ:BTBT)

Forward P/E: 7.76

Earnings Growth: 300.00%

Analysts’ Upside Potential: 70.62%

Number of Hedge Fund Holders: 8

Bit Digital Inc. (NASDAQ:BTBT) is a platform for digital assets and artificial intelligence (AI) infrastructure. The company is primarily known for its large-scale Bitcoin mining operations located in the US, Canada, and Iceland. Bit Digital expanded its offerings by launching Bit Digital AI, which provides infrastructure services for AI applications. The company also introduced ETH staking to power the Ethereum blockchain.

The majority of the company’s operations run on carbon-free energy sources, allowing Bit Digital to sustainably power leading blockchains and generative AI workstreams. With its diversified business model, Bit Digital Inc. (NASDAQ:BTBT) has positioned itself well at the intersection of two rapidly growing industries: cryptocurrencies and AI.

In the second quarter of 2024, the company produced 244 Bitcoins, a 23% decrease year-over-year due to increased network difficulty and reduced block rewards following the halving in April. In terms of financial performance, Bit Digital Inc. (NASDAQ:BTBT) has demonstrated impressive growth. Total revenue for the second quarter surged to $29 million, marking a 220% increase compared to the same period in 2023. This growth was primarily driven by the successful launch of its high-performance computing (HPC) services and higher Bitcoin prices, with Bitcoin mining revenue rising by 80% year-over-year to reach $16.1 million.

The company’s HPC services business generated $12.5 million in revenue, a remarkable achievement considering this was the first full quarter for this business line. This growth reflects the company’s strategic pivot towards providing infrastructure for AI applications, leveraging its expertise in digital asset mining.

At the end of the second quarter of 2024, the company held over $90 million in Ethereum and has significantly increased its ETH position through Bitcoin conversions. Management believes ETH has significant long-term potential. Additionally, Bit Digital Inc. (NASDAQ:BTBT) earned 109.4 ETH from staking during the quarter, representing approximately $374,000 in revenue.

The company maintains a debt-free balance sheet. However, it is exploring potential debt financing options to help accelerate the growth of its HPC services business.

Bit Digital Inc. (NASDAQ:BTBT) ranks fourth on our list of the most undervalued blockchain stocks according to analysts. The company is poised to capitalize on the increasing demand for AI computing resources and services. BTBT is trading at over 7 times its forward earnings. The median 1-year stock price target set by analysts indicates a potential upside of 70.62% from current levels.