Aiming to diversify and grow its business, BitNile Holdings,Inc. (NASDAQ: NILE) acquires undervalued businesses and new technologies. Through its subsidiaries, NILE operates a data center for Bitcoin mining and introduces products in a number of industries. NILE stock has attracted interest from many investors thanks to the company’s 10.9% ownership in Mullen Automotive Inc. (NASDAQ: MULN) which has become a favorite among retail investors thanks to its short squeeze potential. With increasing Bitcoin production, many investors are bullish it’s long-term potential after NILE stock increased 25% during premarket hours based on its annual report.
NILE Stock News
Currently, NILE’s main focus is Bitcoin mining and according to its most recent update NILE has invested $111 million in Bitcoin miners and the infrastructure of its Michigan Data Center. Based on NILE’s previous agreement with Bitmain, the company expects to receive 16 thousand miners between March and September. As is, NILE expects to own 4,800 miners by the end of March – which has the potential to produce more than two Bitcoin daily. If successful, this would generate roughly $84,429 per day at BTC’s current value. Each month, the company will install an additional 2,300 miners for a total of 20,600 active miners by the end of September. Once complete, NILE expects to achieve mining production capacity of approximately 2.24 exahashes per second – putting BitNile on track to become one of the largest Bitcoin miners in the United States.
To expand further into the crypto mining industry, NILE created a new division – BitNile Mining Solutions (BMS) which would facilitate the sale of crypto miners and provide blockchain services such as hosting, managing electrical power, and other crypto solutions. With this goal in mind, NILE plans to expand its data center’s capacity to 300 megawatts in order to operate 90 thousand Bitcoin miners across the 617,000 square foot facility with 30,000 square feet for its data center.
This expansion is part of NILE’s potential agreement with a nuclear plant to provide power to the data center at a competitive price. This multi-year power agreement and access to “green” alternative power sources would facilitate NILE’s expansion without encountering costly energy problems. The company is also considering off-grid cogeneration of power to extend its overall capacity beyond 300MW. If the agreement with this nuclear plant is finalized, then within 18 to 24 months approximately 85% of its energy would come from emission-free sources.
NILE expects to enter into an agreement with this nuclear plant in the near future. But if it successfully expands its facilities to operate approximately 90,000 Bitcoin miners, then NILE would achieve a production capacity of approximately 12 exahash per second. At a value of $41,000 per BTC and mining difficulty level of 27.55 trillion, NILE’s estimated annual revenue would be $779 million.
Besides NILE’s focus on crypto mining, the company operates a subsidiary in the EV charging and power solutions industry. The subsidiary – TurnOnGreen – specializes in energy solutions for the sustainable energy industry, medical, telecommunication, cryptocurrency power technology, as well as defense and aerospace industries. As is, TurnOnGreen targets core markets that require specialized products and services.
This subsidiary recently entered into a securities purchase agreement which will result in its acquisition by NILE’s other subsidiary Imperalis Holding Corp. (OTC: IMHC). NILE’s Executive Chairman – Milton Todd Ault III – shared that this transaction will result in TurnOnGreen becoming a publicly traded company “dedicated to continuing the development, manufacturing and sales of its proprietary power solutions and EV charging systems serving both residential and commercial segments.”
According to the agreement, Imperalis will change its name to TurnOnGreen and will have TOG Technologies and Digital Power Corporation as subsidiaries. Following this transaction, NILE will help TurnOnGreen uplist to the NASDAQ.
In due course, NILE will provide its shareholders with a dividend in the form of TurnOnGreen shares. BitNile expects to distribute to its shareholders “approximately 140 million common shares and an equal number of warrants to purchase such shares of TurnOnGreen at the time of the record date to be set therefor”. Chairman Milton Ault III believes this dividend “will benefit our stockholders who have been supportive of our transformation from a power solutions company in 2016 to a diversified holding company serving multiple sectors”.
Meanwhile, TurnOnGreen has entered into a partnership with the Glen Center in Los Angeles to provide EV charging services for its visitors. TurnOnGreen will install its commercial network level 2 charger in the center’s parking. This and other charging services provided by TurnOnGreen can be found using its mobile application.
But in the long-term, this project is symbolic of the opportunities TurnOnGreen can capitalize on in the future since the Department of Energy Alternative Fuels Data Center reported that there are only 46,000 public charging stations available to support the 1.8 million EVs currently on the road. This gap is expected to grow as the Edison Electric Institute estimates there will be 22 million EVs in the US by 2030.
In terms of financials, NILE expects $52 million in revenues for 2021 – an increase from $23.9 million the prior year. NILE also projects that its 2022 revenues will reach $155 million as the company expects to install all 20 thousand Bitcoin miners by the end of 2022. If the company achieves this, it will likely become undervalued considering its $66 million market cap.
In light of this and other factors, NILE stock was given a price target of $7 by Spartan Capital which underscored the companies long-term potential and revenue streams saying that given “the planned IPO of the defense business and merger with Giga-tronics. […] we expect the recapitalization into two separate companies to also drive value as value investors can look to Ault Alliance and the relative stability of the defense and cleantech businesses and growth investors can look to the new BitNile, Inc. to satisfy their demand for a company with higher growth prospects, albeit driven by the volatility in the price of bitcoin.”
*Updated March 28th
After announcing the repayment of $66 million senior secured notes, NILE stock has reinforced shareholder confidence leading to a 32% surge pre-market. Through repaying its debt, NILE will be relieved from the security interest in its assets and the pledges of equity interests in its subsidiaries.
As the company is now virtually debt free, NILE is able to move forward with its plans for TurnOnGreen due to the elimination of restrictive agreements. With this in mind, Ault believes that NILE “will be able to pursue the issuance of special dividends and execute on strategic opportunities to spin out key holdings in the future”.
Given that NILE is expected to release its earnings report on April 15th, many investors are anticipating major financial growth. With these debts repaid and the anticipated annual report on the horizon, many investors are bullish NILE stock will maintain its momentum.
*Updated April 18th
NILE provided an update regarding its mining progress in March, detailing that it has doubled its Bitcoin miners for a total of 4,754. Once the all miners are installed and operational, NILE will be producing Bitcoins at a processing power of 500 petahashes.
So far NILE has mined a total of 132.6 Bitcoin – 31.7 BTC in March alone. Currently, the company estimates it will be able to produce 398 Bitcoin per year and NILE appears to be on track to achieve this as well as its projected revenues of $155 million. This is in part due to the climbing price of Bitcoin which has led NILE to consider investing an additional $70 – 80 million in bitcoin miners and infrastructure improvements.
After this update, NILE appears well-positioned to deliver on its target of becoming one of the top 10 Bitcoin miner in the US. However, its financial footing is largerly dependent on the value of Bitcoin which recently slipped below $40 thousand. Despite this, some experts believe BTC could surge to $100 thousand in 2022 which could be a major payoff for NILE and its investors.
More recently, BitNile released its annual report which featured a 120% increase in revenue for a total of $52.4 million in 2021- $3.5 million of which was generated through Bitcoin mining. While NILE is still operating at a net loss of $24.1 million, it is a 35% decrease from the year before. The company also has assets worth $490.3 million and cash on hand of $15.9 million.
According to NILE’s CFO, these financial results are a result of its business expansion. He went on to say that NILE “more than doubled our top-line, with revenue up 120% over the prior year period and grew assets by 548% compared to the prior year end.” Additionally, the company invested $86 million in Bitcoin mining equipment and upgrades to the Michigan data center which he strongly believes “will contribute to both revenue growth and improved profitability in future periods”. On top of this, NILE diversified its holdings by investing $86.9 million in its real estate portfolio as well.
This is good news for NILE which shot up during pre-market based on these financial results. Meanwhile, Ault shared that the company has “just completed year four of a ten-year plan to scale our diversified holding company to $1.0 billion in assets” and despite the obstacles – NILE remains on track to achieve this.
According to this long term plan, NILE expects to achieve positive cash flow from its operations as it grows its margins and achieves scale. Ault commented that, “At scale, we expect to fund our growth initiatives from internally generated free cash flow and become far less reliant on raising capital. Further, we expect to triple our top-line results in 2022, growing revenue to more than $155 million.”
This rapid revenue growth would be a significant accomplishment for the company which expects to spin off a few of its subsidiaries as publicly traded companies this year.
Media Sentiment
@MoonMarket_ was watching for investors’ response NILE’s financials during premarket
@InvestorsGroup15 reminds everyone that a dividend is expected to reach its shareholders
Technical Analysis
Despite its pre-market gap up, NILE stock is trading at $.63 while showing a main support at .539 and a resistance at .696 as well as at .769. The RSI is now at 60 after earlier overbuying. The MACD is bullish but accumulation appears to be dropping.
Although the company has a number of positive catalysts, NILE stock has been unable to sustain positive momentum and has filled many of the chart’s gaps on the way down. Yet, the stock could have another run as Bitcoin shows signs of rallying.
NILE Stock Forecast
Considering that the crypto and EV industries are growing at a fast pace, NILE has the potential to capitalize on these markets as it continues to mine Bitcoin and grow its subsidiary TurnOnGreen. Given its investment in MULN, NILE is benefiting from the hype surrounding MULN stock by receiving MULN shareholders’ attention. However, NILE stock could be a profitable long-term investment as the company continues to venture into crypto mining, EV solutions, and defense technology. With the company continuing to develop its Bitcoin mining business and increase its production, NILE stock could prove very profitable if Bitcoin reaches new highs this year.
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