Bit Digital Q2 Earnings Call Highlights

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Bit Digital (NASDAQ:BTBT) reported second-quarter revenue of $32.1 million, up 15% sequentially, as cloud services growth helped offset lower Ethereum staking and bitcoin mining revenue. The company also outlined a capital-allocation strategy centered on its Ethereum holdings and its majority interest in data-center business WhiteFiber.

Net loss attributable to Bit Digital shareholders was $107.2 million, or $0.31 per share, for the quarter. Chief Financial Officer Erke Huang said roughly $86 million of the loss stemmed from digital-asset items, derivative revaluation and interest expense rather than operating performance.

Cloud services drives quarterly revenue growth

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Cloud services revenue rose 42% from the first quarter to $23.8 million, driven by new contracts entering service and expanded existing agreements. For the first six months of 2026, cloud revenue increased 29% year over year and generated a 58% gross margin, Huang said.

Colocation services produced $4.7 million of second-quarter revenue, essentially unchanged from the prior quarter, with a 63% gross margin. First-half colocation revenue increased 182% year over year. Huang said WhiteFiber’s NC1 facility in North Carolina was not yet included in the reported results and is expected to begin contributing during the third quarter.

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Total gross profit was $18.6 million, representing a 57.9% gross margin. Operating cash flow for the first half was $46.8 million, up 33% from $35.1 million in the prior-year period.

Ethereum staking revenue fell to $0.9 million from $2.3 million in the first quarter. The company earned 440 ETH in staking rewards, compared with 949 ETH in the prior quarter. Huang attributed the decline to the unstaking of a portion of the company’s Ethereum to support a financing arrangement with WhiteFiber, as well as lower Ethereum prices during the quarter.

Digital-asset mining revenue declined to $2.4 million on 32.3 bitcoin mined, compared with 48.1 bitcoin in the first quarter. Mining revenue was down 58% year over year for the first six months as Bit Digital continued to wind down the business. Huang said mining remained gross-margin positive, with a 26% margin in the second quarter.

Ethereum-backed bridge financing for WhiteFiber

Chief Executive Officer Sam Tabar said the company raised $50 million of liquidity against a portion of its Ethereum holdings and originated a delayed-draw term facility with commitments of up to $150 million for WhiteFiber. The facility is guaranteed by WhiteFiber’s parent and is intended to bridge the company’s North Carolina data-center investment until permanent project financing is secured.

Tabar said the transaction enabled Bit Digital to preserve its Ethereum position, avoid equity issuance at either company and maintain its WhiteFiber ownership. The company said independent committees at both businesses reviewed the transaction, while Needham and Seaport Global provided fairness opinions to their respective boards.

According to management, the facility is intended to support the initial 40-megawatt build-out of WhiteFiber’s NC1 facility. Once permanent financing is completed, Bit Digital expects its collateral to be released, the guarantee to terminate and the bridge loan to be repaid with interest.

Huang said the company recorded a $28.8 million loss on digital assets carried at fair value, reflecting mark-to-market movement in Ethereum and bitcoin holdings. It also recorded a $46 million non-cash impairment on liquid-staked ETH used in the WhiteFiber financing transaction. Huang said the impairment reflected the accounting treatment of the position and was not a realized loss. The quarter also included a $14 million loss from a change in the fair value of derivative liabilities associated with convertible notes and $8.1 million in interest expense.

Treasury, contracted revenue and WhiteFiber outlook

Bit Digital purchased 8,568 ETH for $20 million on May 11, at an average cost of $2,334 per ETH, Huang said. As of June 30, the company held 75,757 ETH directly, with a carrying fair value of $118.9 million. It also held Ethereum exposure through an externally managed bond carried at $47.9 million in investment securities.

Consolidated cash and cash equivalents totaled approximately $83.6 million at quarter-end, including $27.5 million at Bit Digital and $56.1 million at WhiteFiber. Contract liabilities nearly doubled from year-end to $143.1 million, representing contracted revenue for which cash has already been collected but services have not yet been delivered.

Remaining performance obligations totaled about $1 billion. The company expects to recognize approximately $57.7 million over the remainder of 2026, $136.7 million in 2027 and $105.1 million in 2028, with the remainder recognized thereafter.

Tabar said WhiteFiber expects to reach full contracted run-rate billing later in the month under its 10-year agreement with Enscale, representing roughly $865 million in contracted revenue. He also said WhiteFiber had signed more than $500 million in aggregate contract value since Bit Digital’s prior earnings call, including next-generation GPU deployments and a managed-services agreement.

Board evaluating potential share repurchase

Management said the board is considering a share-repurchase program as Bit Digital believes its shares trade at a substantial discount to the value of its assets. Tabar said the discount had at times exceeded 40% by the company’s calculations, but he did not provide a timeline or commitment for a repurchase authorization.

During the question-and-answer session, Tabar said Bit Digital does not intend to sell WhiteFiber shares during 2026, describing WhiteFiber as a core long-term holding. He said potential sources of liquidity for a future buyback could include several alternatives, though he added that proceeds from a WhiteFiber share sale would not fund a repurchase this year given the company’s commitment not to reduce that position.

Huang said Bit Digital and WhiteFiber were coordinating on potential registration statements later in the quarter as they evaluate a possible modest covered-call program involving a limited portion of Bit Digital’s WhiteFiber holdings. Management said no pricing had been determined and any program would require board approval.

About Bit Digital (NASDAQ:BTBT)

Bit Digital, Inc (NASDAQ: BTBT) is a publicly traded digital asset mining company that specializes in the proof-of-work mining of Bitcoin. Incorporated in Nevada and headquartered in New York City, Bit Digital develops, owns and manages a fleet of high-efficiency ASIC miners, with the primary aim of generating newly minted Bitcoin through computational work. The company's revenue is derived solely from its mining operations and any resulting cryptocurrency holdings.

To support its mining activities, Bit Digital maintains multiple data center facilities across North America.

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