We feel now is a pretty good time to analyse Bit Digital, Inc.'s (NASDAQ:BTBT) business as it appears the company may be on the cusp of a considerable accomplishment. Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. The US$595m market-cap company's loss lessened since it announced a US$14m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$2.7m, as it approaches breakeven. The most pressing concern for investors is Bit Digital's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

Consensus from 4 of the American Software analysts is that Bit Digital is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$47m in 2025. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 120% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Bit Digital's growth isn't the focus of this broad overview, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there's one aspect worth mentioning. Bit Digital currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Bit Digital which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bit Digital, take a look at Bit Digital's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Historical Track Record: What has Bit Digital's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bit Digital's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.