Let's talk about $BTBT (Bit Digital).
A veteran mining company listed on NASDAQ, which used to primarily rely on Bitcoin mining for its income.
But in the past two years, its image has quietly changed.
The latest Q2 financial report: a net profit of 14.9 million dollars.
It's important to note that during the same period last year, it lost 12 million, showing a direct V-shaped reversal.
This was not solely due to a market recovery, but rather a transformation in its business model.
Looking back at the old script of this industry:
🔹 In 2021, during the bull market, miners operated like printing presses, and everyone was getting rich;
🔹 In 2022, during the bear market, mining machines depreciated, leading to waves of bankruptcies and liquidations, with many unable to hold on;
🔹 The remaining survivors all discovered: relying solely on mining is simply not sustainable.
Bit Digital is one such survivor.
It did not stubbornly cling to mining machines but instead began to ramp up digital asset management,
its business increasingly resembles a crypto investment bank rather than just exchanging electricity for Bitcoin.
This is the key to Bit Digital's transformation.
Comparing with peers:
🔹 $MARA (Marathon) is still fighting for computing power and electricity prices, with large profit fluctuations;
🔹 $RIOT (Riot) is also expanding its mining machines, but its model has fundamentally not changed;
🔹 $BTBT has chosen to transform, not just mining, but also laying out asset management and diversified businesses.
This enhances its risk resistance and growth potential.
So how should we view the long-term value of such companies?
I believe we should stop solely focusing on computing power, electricity prices, and machine depreciation.
These factors can only determine whether you make or lose money in a given cycle.
The real long-term value lies in whether it can carve out a second growth curve.
In summary:
Making money in a bull market is not surprising; surviving in a bear market and being able to transform is what truly defines a tough player.
Bit Digital's transformation may be a signal:
The future mining companies might increasingly resemble asset management giants rather than traditional energy companies.
👀 Now the question arises:
Do you think the future of mining companies is to continue competing on costs like energy companies?
Or will they transform into a crypto version of BlackRock, managing, allocating, and operating an entire digital asset ecosystem?
