PayPal Holdings (PYPL) and Coinbase Global (COIN) have announced an expansion of their partnership aimed at increasing the adoption and utility of the PayPal USD (PYUSD) stablecoin. This strategic collaboration will grant Coinbase users direct access to PYUSD, enabling them to buy, sell, and trade the stablecoin on the platform without incurring fees. Additionally, users can redeem PYUSD for U.S. dollars on a 1:1 basis through Coinbase.
The two companies are set to explore innovative applications for PYUSD, particularly in decentralized finance (DeFi) and on-chain platforms, with the goal of expanding the stablecoin's role in global commerce and financial management. The partnership aligns with both companies' objectives to drive widespread adoption of digital currencies.
In a related announcement, PayPal has introduced a reward program for PYUSD, available in the summer of 2025. U.S. users can earn a 3.7% annual reward on their PYUSD holdings within PayPal and Venmo wallets, which can be utilized for payments, remittances via Xoom, and conversion to other cryptocurrencies or fiat.
Furthermore, Riot Platforms (RIOT) has secured a $100 million credit facility from Coinbase Credit. The funds will be used to support strategic initiatives and general corporate purposes, underpinning Riot's operations in the cryptocurrency sector.
The recent developments come at a time when the cryptocurrency market is experiencing fluctuations, with Coinbase emerging as the largest U.S.-based cryptocurrency exchange, holding a 66% domestic market share. Despite the stock's recent decline, analysts remain optimistic about Coinbase's future, seeing potential growth as regulatory clarity increases and institutional adoption expands.
Meanwhile, the volatile cryptocurrency market continues to influence publicly traded companies like Bit Digital (BTBT, Financial), Core Scientific (CORZ), and Greenidge Generation (GREE), among others. As of this week, the price of bitcoin has risen approximately 12%, reaching $94,322, indicating a rebound amidst the ongoing market dynamics.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Bit Digital Inc (BTBT, Financial) is $5.83 with a high estimate of $7.00 and a low estimate of $4.80. The average target implies an upside of 178.88% from the current price of $2.09. More detailed estimate data can be found on the Bit Digital Inc (BTBT) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Bit Digital Inc's (BTBT, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Bit Digital Inc (BTBT, Financial) in one year is $4.34, suggesting a upside of 107.66% from the current price of $2.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Bit Digital Inc (BTBT) Summary page.
BTBT Key Business Developments
Release Date: March 14, 2025
- Revenue Growth: Increased by 141% to $108 million in 2024.
- Adjusted EBITDA: Reached $73 million in 2024.
- HPC Revenue: Accounted for over 40% of full-year revenue and more than half of Q4 revenue.
- Cloud Services Revenue: Generated $45.7 million in its first year, with $13 million in Q4 2024.
- Bitcoin Mining Revenue: $58.6 million, up 32% year-over-year.
- Gross Margin: Expanded to 42.3%, a 500 basis point increase.
- Net Income: GAAP earnings per share of $0.19 for 2024.
- Cash and Digital Assets: $98.9 million in cash and $161.4 million in digital assets as of December 31, 2024.
- Capital Expenditures: Totaled $94 million in 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bit Digital Inc (BTBT, Financial) reported a significant revenue growth of 141% in 2024, driven by the expansion of their HPC business.
- The company successfully integrated a major acquisition, enhancing their data center operations and customer base.
- Cloud Services, a new segment in 2024, became the largest revenue generator, contributing $13 million in Q4 alone.
- Bit Digital Inc (BTBT) has secured multiple long-term contracts, including a significant partnership with Cerebras for a high-density colocation capacity.
- The company remains debt-free and is exploring non-dilutive financing options to support further growth in their HPC business.
Negative Points
- Gross profit margins contracted slightly in Q4 due to increased GPU leasing expenses and additional data center capacity.
- The Bitcoin mining segment saw a decline in its revenue contribution, dropping from 98% in 2023 to 54% in 2024.
- There is a potential risk of increased costs due to tariff wars affecting the import of critical data center components.
- The company faces challenges in managing capital deployment to avoid excess inventory risk in their GPU procurement strategy.
- Bit Digital Inc (BTBT) acknowledges that their stock is undervalued and misunderstood, trading more like a pure-play Bitcoin miner despite their diversified operations.
