Why Bit Digital Stock Raced 18% Higher on Wednesday

Wednesday was a fine day to be invested in nearly any type or flavor of cryptocurrency. It was also a good day for shareholders in crypto mining companies, which saw a bounce as the Great Crypto Rally of Late 2023 extended into yet another trading session.

One of those miners, Bit Digital (NASDAQ: BTBT), also benefited from a positive move by an analyst tracking its stock, along with the announcement of a new operational goal. As a result, Bit Digital’s share price moved up more than a bit, closing the day over 18% higher. That was more than good enough to beat the S&P 500 index’s 0.1% upward bump.

Recommendation upgraded and price target more than doubled

A noted Bitcoin (CRYPTO: BTC) bull’s latest bulk purchase of the most popular coin — well, by his company, anyway — provided quite the tailwind for the company. But Bit Digital also received an upgrade.

Singular Research analyst Edward Engel shifted his recommendation up one peg to buy from his previous buy long term. As he did so, he more than doubled his price target on the crypto miner stock’s price, to $7.70 per share from his preceding $3.80.

Engel’s latest Bit Digital note hasn’t yet been made publicly available, so we don’t know exactly what’s behind his upgrade. It’s surely no coincidence that it comes just after Tuesday’s announcement by the company that it intends to double the operating fleet of its Bitcoin mining operations in 2024.

Sweet timing for a double-down announcement

While Bit Digital’s terse press release on the matter didn’t reveal any details, it was well timed. Bitcoin and a great many other coins and tokens continue to rally.

This is thanks to a macroeconomic environment that’s looking increasingly favorable and the anticipated coming of the first Bitcoin (and likely other cryptocurrencies) spot exchange-traded funds (ETFs) in 2024. We’ll soon see if this momentum can continue into the New Year.

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Eric Volkman has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

Why Bit Digital Stock Raced 18% Higher on Wednesday was originally published by The Motley Fool