Bit Digital Surges 18% as Ethereum Strategy Sparks Bullish Momentum and Investor Interest

Technical Analysis

Bit Digital, Inc. (NASDAQ: BTBT) closed at $3.48 on July 7, 2025, marking a significant intraday gain of 17.97%. The stock traded in a wide range between $3.24 and $3.86, well above its 50-day moving average of $2.33 and 200-day moving average of $3.03, indicating recent bullish momentum. The RSI at 70 signals an overbought condition, which could lead to short-term consolidation or mild pullback. The MACD remains slightly negative (-0.06), suggesting that momentum may not yet have fully turned bullish on a longer timeframe. Volume surged to 166.85 million, far exceeding the average volume of 19.93 million, confirming strong buying interest during this rally. Key support lies at $2.95, with a stop-loss level near $3.35. No clear resistance is indicated immediately overhead, but the psychological level near the year-high of $5.74 remains a notable longer-term barrier.

For the next trading day (July 8), the elevated RSI alongside strong volume and recent news catalyst suggests potential for continued upside or sideways consolidation. Over the upcoming week, momentum could moderate due to overbought conditions, but the overall trend remains positive given the breakout above key moving averages and institutional interest implied by the capital raise and ETH accumulation.

Fundamental Analysis

Bit Digital recently completed a strategic shift, converting its entire treasury to Ethereum following a $172 million equity raise. This move positions BTBT as one of the largest public Ethereum holders, a significant pivot away from Bitcoin mining toward exposure to ETH’s emerging ecosystem. The transition aligns with management’s narrative under CEO Sam Tabar, reflecting confidence in Ethereum’s long-term technological and market position.

The company reported a trailing twelve months (TTM) EPS of -$0.56 and a negative P/E of -6.21, indicative of ongoing losses typical for a growth-stage crypto miner adapting its balance sheet strategy. Earnings announcement is scheduled for August 18, 2025, which will be closely watched for updates on profitability and operational outlook.

Analyst consensus holds a bullish stance with a target price averaging $6.50, nearly doubling the current price, which suggests significant upside relative to intrinsic value based on growth potential. However, intrinsic valuation remains challenging due to the volatility inherent in cryptocurrency markets and BTBT's continued negative earnings. The recent capital infusion and treasury diversification enhances balance sheet resilience, reducing downside risk and supporting long-term viability.

Long-Term Investment Potential

Bit Digital’s strategic repositioning as a top Ethereum holder among public companies could unlock substantial value if ETH adoption and price appreciate. The company’s exposure to Ethereum may provide stronger growth prospects compared to traditional Bitcoin mining, which faces increasing difficulty and competitive pressures. Continued investment in crypto infrastructure and prudent capital deployment will be critical to achieving sustainable profitability. Given the nascent nature of the crypto mining sector and regulatory uncertainties ahead, the stock embodies high risk but also elevated reward potential over the next several years.

Overall Evaluation

Bit Digital exhibits strong technical momentum supported by fundamental developments including a sizable equity raise and treasury realignment toward Ethereum. Despite operating losses, the transition enhances strategic positioning within the crypto ecosystem. Short-term price action may experience volatility due to overbought indicators, but the medium-term outlook is driven by bullish analyst targets and institutional backing. Given these factors, the stock is characterized as a Buy candidate for investors seeking exposure to the Ethereum mining and treasury play with growth-oriented risk tolerance. The lack of immediate resistance and elevated volumes reinforce the case for continued appreciation, while active monitoring of earnings and regulatory developments remains essential.