Bit Digital (NASDAQ:BTBT) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Bit Digital from a "hold" to a "strong sell," while analyst coverage remains split (two Buys, two Sells) giving an average rating of "Hold" and an average price target of $5.67.
• Shares opened at $1.31 (down ~3.7%), the company reported negative quarterly EPS (missed estimates) and has negative margins and projected FY EPS of about -$0.20, underscoring near-term profitability pressure.
• Despite operational weakness, Bit Digital holds sizeable liquidassets — roughly $327M in ETH and ~$322M in WYFI shares — and management is pivoting toward Ethereum and AI infrastructure while reducing ETH staking to boost treasury flexibility.

Bit Digital (NASDAQ:BTBT - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Monday,Zacks.com reports.

A number of other research firms also recently weighed in on BTBT. HC Wainwright reaffirmed a "buy" rating and set a $7.00 price target on shares of Bit Digital in a research note on Thursday, April 2nd. Wall Street Zen downgraded Bit Digital from a "hold" rating to a "sell" rating in a research note on Saturday, March 7th. Weiss Ratings downgraded Bit Digital from a "hold (c-)" rating to a "sell (d)" rating in a research note on Monday, March 30th. Finally, B. Riley Financial dropped their price target on Bit Digital from $6.00 to $5.00 and set a "buy" rating on the stock in a research note on Thursday, April 2nd. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Bit Digital presently has an average rating of "Hold" and an average price target of $5.67.

Bit Digital Stock Down 3.7%

Shares of NASDAQ:BTBT opened at $1.31 on Monday. The company has a market capitalization of $427.82 million, a price-to-earnings ratio of -2.38 and a beta of 4.02. The company has a debt-to-equity ratio of 0.13, a current ratio of 6.39 and a quick ratio of 17.53. The business's 50-day moving average is $1.66 and its 200-day moving average is $2.36. Bit Digital has a 1 year low of $1.25 and a 1 year high of $4.55.

Bit Digital (NASDAQ:BTBT - Get Free Report) last announced its quarterly earnings data on Friday, March 27th. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.02). The business had revenue of $32.34 million during the quarter, compared to analyst estimates of $31.87 million. Bit Digital had a negative net margin of 70.70% and a negative return on equity of 5.39%. Equities research analysts predict that Bit Digital will post -0.2 earnings per share for the current year.

Institutional Trading of Bit Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Walleye Trading LLC bought a new stake in Bit Digital during the 2nd quarter worth approximately $25,000. Cerity Partners LLC bought a new stake in Bit Digital during the 4th quarter worth approximately $26,000. nVerses Capital LLC bought a new stake in Bit Digital during the 4th quarter worth approximately $26,000. Marathon Capital Management bought a new stake in Bit Digital during the 4th quarter worth approximately $28,000. Finally, E6 Portfolios LLC bought a new stake in Bit Digital during the 4th quarter worth approximately $28,000. 47.70% of the stock is owned by institutional investors.

Bit Digital News Roundup

Here are the key news stories impacting Bit Digital this week:

• Positive Sentiment: Bit Digital reported it held ~155,444 ETH as of March 31, 2026, valued at roughly $327.0M based on the March 31 close — a sizable liquid asset base that underpins the balance sheet and provides optionality for capital allocation. PR: Monthly Ethereum Treasury and Staking Metrics
• Positive Sentiment: Management is repositioning the business toward Ethereum and AI infrastructure, highlighting 2025 results and a strategic pivot that could broaden revenue streams beyond pure BTC/ETH mining. This strategic messaging supports a longer-term growth narrative. Video: 2025 results and strategic pivot
• Positive Sentiment: The company holds a large position in WYFI shares (reported at roughly $322M in some coverage), adding another material non-mining asset that can support liquidity or monetization options. Article: WYFI stake and staking changes
• Positive Sentiment: Management reduced the portion of ETH allocated to staking in March to increase treasury flexibility — a move that prioritizes liquidity and optionality amid volatile crypto markets, though it may lower near-term staking revenue. Proactive: Staking allocation adjustment
• Neutral Sentiment: Multiple research shops updated FY2026 and quarterly EPS forecasts: Northland projects FY2026 EPS of ($0.09) with Q1/Q2 around ($0.04), while HC Wainwright provided quarterly schedules and maintains a Buy rating with a $7 target. These analyst models give guidance on expectations but show dispersion among forecasters.
• Neutral Sentiment: Comparative and sector coverage (e.g., a financial comparison with AirSculpt Technologies) may attract attention from different investor sets but is unlikely to move the stock materially by itself. Comparison: Bit Digital vs. AirSculpt
• Negative Sentiment: Market reaction: coverage noted the stock traded lower in the latest session (price weakness), reflecting investor concern about near-term earnings, staking yield trade-offs, and macro/crypto volatility that can pressure miner valuations. Zacks: Stock Sinks As Market Gains
• Negative Sentiment: HC Wainwright lowered its FY2026 EPS view (previously positive) and pushed some quarterly estimates into modest losses — a downward revision that can weigh on sentiment despite the firm's Buy rating and $7 target. (Market expectations now reflect continued near-term negative EPS.)

About Bit Digital

Bit Digital, Inc NASDAQ: BTBT is a publicly traded digital asset mining company that specializes in the proof-of-work mining of Bitcoin. Incorporated in Nevada and headquartered in New York City, Bit Digital develops, owns and manages a fleet of high-efficiency ASIC miners, with the primary aim of generating newly minted Bitcoin through computational work. The company's revenue is derived solely from its mining operations and any resulting cryptocurrency holdings.

To support its mining activities, Bit Digital maintains multiple data center facilities across North America.

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