BlackRock Multi-Sector Income Trust (BIT) Stock

AKRON, Ohio , Dec. 3, 2024 /PRNewswire/ -- BIT Mining Limited (NYSE: BTCM) ("BIT Mining" or the "Company"), a leading technology-driven cryptocurrency mining company, today announced that it has entered into a definitive agreement (the "Agreement") to acquire 51-megawatt crypto mining data centers in Ethiopia (the "Data Centers") and 17,869 high-quality Bitcoin ("BTC") mining machines (the "BTC Mining Machines"). Under the Agreement, the Company will indirectly acquire the Data Centers and BTC Mining Machines for a total consideration of US$14.28 million.

Washington, D.C.--(Newsfile Corp. - November 18, 2024) - The Securities and Exchange Commission today announced that BIT Mining Ltd.

The BlackRock Multi-Sector Income Trust offers a 9.80% yield but faces sustainability concerns due to recent distribution coverage issues. The fund's flexibility to invest in foreign bonds and currencies provides some inflation protection, but its current U.S.-centric portfolio limits this advantage. The fund is more diversified across sectors than some of BlackRock's other debt fund offerings, but it is not as good for investors looking for foreign exposure.

The BlackRock Multi-Sector Income Trust has seen a negative performance since our prior 'Sell' rating, with -6.9% price loss in the process. BIT has a multi-asset approach with a bar-belled portfolio, being long a pocket of BB and B names versus a sleeve of AAA-rated assets. The CEF has seen its premium to NAV normalize, a factor which has contributed to a better valuation framework.

The BlackRock Multi-Sector Income Trust generates high income from a multi-sector portfolio of fixed income securities. Investors who like the BIT fund appear to be too complacent, bidding credit spreads to cycle lows despite elevated defaults. With the economy slowing in 2024, I expect credit spreads to eventually catch up with defaults and negatively impact credit funds like the BIT.

PDI: Despite Section 19 Notices, Attractive 13.7% Yield

BlackRock Multi-Sector Income Trust outperformed its peers during the recent monetary tightening regime by immunizing the fund from duration via interest rate swaps. The composition of BIT's portfolio follows a bar-belled approach, with high-yield exposure balanced by AAA assets. However, this methodology has encountered trouble in the current inflationary environment. BIT is currently trading at a generational high premium to NAV. Additionally, the fund is a chronic over-distributor, with a high percentage of its distribution coming from the return of capital.

The BlackRock Multi-Sector Income Trust is a fixed-income closed-end fund that offers a high income for investors. The fund has a current yield of 9.72%, which compares pretty well to many other debt-focused closed-end funds. However, the fund's performance has been mixed, with a slight profit of 0.36% recently, but still better than the loss of the Bloomberg U.S. Aggregate Bond Index.

The BlackRock Multi-Sector Income Trust offers a reasonable 9.80% yield for income-focused investors. The fund invests in safer securities than other funds with higher yields, making it attractive for risk-averse investors. The fund's recent performance has been decent, but its strength relies heavily on the Federal Reserve cutting interest rates, which seems unlikely.