What happened

Shares of Bit Digital (BTBT -1.98%), a company that mines Bitcoin, soared on Wednesday, closing the day almost 8% higher. Part of this is due to the price of Bitcoin going up. According to CoinDesk, Bitcoin was up 10.5% over the previous 24 hours as of 4:20 p.m. EDT. But Bit Digital also had news that shareholders should know about.

So what

In a filing with the Securities and Exchange Commission (SEC) yesterday, Bit Digital provided its shareholders with a transcript of prepared remarks from CEO Bryan Bullett for the LD Micro Conference. In it, Bullett noted how the company is shifting operations out of China and into North America, due to the uncertain regulatory environment in China. In January, the company was operating at full capacity and mined 425 bitcoins in that month alone. Production is down with the transition, but it believes this is a good benchmark for its capability going forward.

Now what

Two things in the presentation could be exciting investors. The first is the valuation for Bit Digital stock. The company generated revenue of $44 million in the first quarter of 2021 and currently has a market capitalization of about $400 million, according to Yahoo Finance. On an annualized basis, that's a price-to-sales (P/S) ratio of about 2.3. Bullett points out this is a value stock compared to Bit Digital's peers. Considering stocks like Marathon Digital and Riot Blockchain trade with trailing P/S ratios of 200 and 92, respectively, Bullett may have a point. To make it an apples-to-apples comparison, Bit Digital trades at a P/S ratio of around 6, which is still a discount. 

Bullett said, "In the coming months, we look forward to announcing several exciting new initiatives in the digital assets ecosystem that we believe will drive attractive returns for shareholders, and further differentiate our company." A seemingly attractive valuation coupled with the possibility of new growth initiatives may be a combination that's attracting investors to Bit Digital stock today, even with the ongoing uncertainty of relocating its mining operations.