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Bit Digital, Inc. (NASDAQ:BTBT) is one of the best Ethereum stocks to buy now. On April 2, Craig-Hallum analyst George Sutton cut his price target on Bit Digital, Inc. (NASDAQ:BTBT) to $3 from $4 while keeping a Buy rating on the stock.

Sutton was concerned that Bit Digital is trading at such a steep discount to its modified net asset value. As such, the company raising fresh capital through equity issuance would be highly dilutive and therefore unattractive. Put simply, Bit Digital is highly limited if it wants to fund growth through the market, at least until the valuation gap closes.

The analyst noted that the market’s skepticism toward Bit Digital’s majority stake in WhiteFiber (NASDAQ:WYFI), an AI developer and managed services provider, is the key driver of that valuation discount. Sutton noted that the Bit Digital stock was trading at just 0.63 times book value at the time of the note. This level, he said, implies that the market assigns little premium to the company’s operations or strategic assets beyond their liquidation value.

Independently of the analyst action, Bit Digital shared its Q4 and full-year 2025 financial results on March 31. The results show that the company’s ETH staking revenue surged 287% year over year to $7.0 million. Management noted that the growth was driven by higher staking rewards, expanded staked balances, and stronger average ETH prices.

Bit Digital, Inc. (NASDAQ:BTBT) is a digital asset platform. It is a pure-play Ethereum company that accumulates ETH for staking operations. The company acquires ETH through capital raises and asset reallocation.

While we acknowledge the potential of BTBT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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