What's Going On With Bit Digital Stock After Earnings?

Bit Digital  BTBT shares are trading higher Tuesday after the company posted its second-quarter financial results after Monday's closing bell.

The Details:

The company reported quarterly revenue of $29 million, beating the analyst consensus estimate of $26.09 million. The company attributed the increase to the commencement of its high-performance computing services business and a higher realized Bitcoin BTC/USD price. 

The company highlighted its strong balance sheet and said it will allow Bit Digital to deploy growth capital into “high-return opportunities” in the future.

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Bit Digital also announced a new customer agreement with Boosteroid, Inc. The company expects the initial order to generate approximately $13 million with the potential for $700 million in revenue over the five-year term of the agreement.

Should I Sell My BTBT Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Bit Digital have gained 42.36% year to date. This compares to the average annual return of -37.0%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Bit Digital stock currently has an RSI of 54.62, indicating neutral conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

BTBT Price Action: According to Benzinga Pro, Bit Digital shares are up 17.7% at $3.52 at the time of publication Tuesday.

Read Also:

• Bit Digital Reports Mixed Q2 Results: EPS Miss, Revenue Up 80%

Image: Reto Scheiwlliier from Pixabay