Bit Digital (BTBT 8.04%) stock is sinking in Friday's trading. The company's share price was down 17.6% as of 12:35 p.m. ET in a bearish day of trading for the broader market. At the same point in the session, the S&P 500 was down 1%, and the Nasdaq Composite was down 1.2%.
After the market closed yesterday, Bit Digital published its first-quarter results. Revenue for the period came in higher than the average Wall Street analyst target, but the business recorded another large loss in the quarter.
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Bit Digital sinks despite Q1 revenue beat
Bit Digital's revenue increased roughly 11% year over year to reach $27.9 million in the first quarter, outperforming the average Wall Street analyst estimate by roughly $2.9 million. While the company's net loss narrowed to $146.7 million in the quarter from $185.3 million in the prior-year period, the business still served up bold red ink in Q1. Sales in the quarter were down 13.6% year over year amid lower cloud-services revenue, lower revenue from staking Ethereum (ETH +0.38%), and lower crypto mining revenue.
NASDAQ: BTBT
Key Data Points
What's next for Bit Digital?
The performance outlook for Bit Digital stock seems to come down to two core catalysts. For starters, the company holds a large stake in Ethereum -- and the value of the stock will naturally see moves in conjunction with pricing trends for Ethereum. The company is also making a pivot away from crypto mining and toward using its compute power to provide artificial intelligence (AI) services. While this looks like a promising move, there is still significant execution risk involved.
