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Bit Digital Q2 Earnings Miss Despite Revenue Beat on Cloud Growth
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Key Takeaways
Bit Digital posted a wider Q2 loss despite revenues rising 25.1% and beating estimates by 47.9%.
BTBT's cloud revenues jumped 43.5%, while new agreements carry more than $540 million in contract value.
BTBT faced $46 million in LsETH impairment, $28.8 million in digital asset losses and $114.7M in expenses.
Bit Digital, Inc. (BTBT - Free Report) reported a second-quarter 2026 loss of 6 cents per share, wider than the year-ago loss of 3 cents and missing the Zacks Consensus Estimate of a 5-cent loss. Rising costs affected the bottom line.
Revenues rose 25.1% year over year to $32.11 million and beat the consensus mark by 47.9%. Growth was led by cloud and colocation services, while remaining performance obligations stood at approximately $1 billion at quarter-end.
Bit Digital, Inc. Price, Consensus and EPS Surprise
Cloud services revenues increased 43.5% year over year to $23.8 million and rose 42% sequentially. The company attributed the year-over-year increase primarily to more deployed GPU servers serving new and existing customers. The segment generated an approximately 58% gross margin.
The termination of an agreement with an initial customer reduced monthly GPU service revenue, but a $12.3 million termination fee substantially offset that impact.
WhiteFiber, Inc. (WYFI - Free Report) also continued adding business. New multi-year cloud agreements signed since its previous earnings call carry more than $540 million in combined contract value. The signed contracts indicate the portfolio will likely generate over $200 million of annualized revenues after full deployment.
Bit Digital's Colocation Broadens Revenue Mix
Colocation services contributed $4.7 million in second-quarter revenues and maintained an approximately 63% gross margin. Revenues were nearly unchanged from the first quarter, while the first-half total increased 182% from the prior-year period. The NC-1 campus did not contribute to second-quarter results and is expected to begin adding revenues in the third quarter.
Mining continued to shrink as Bit Digital redirects capital elsewhere. The business generated $2.4 million in revenues from 32.3 bitcoin mined, down from 48.1 bitcoin in the preceding quarter.
BTBT's ETH Strategy Reshapes Revenues
ETH staking revenues totaled $0.9 million, up 147.4% year over year but below $2.3 million in the first quarter. Native staking produced 440.1 ETH during the quarter compared with 166.8 ETH a year earlier, helping offset the impact of a lower average ETH price.
The sequential revenue decline reflected a change in how the company deployed part of its ETH holdings. Bit Digital shifted ETH into liquid staking to provide collateral for financing tied to WhiteFiber. At June-end, the company held approximately 164,310.5 ETH, including ETH-equivalent positions associated with liquid staking and an externally managed fund.
Bit Digital Faces Heavy Cost Pressure
Second-quarter gross profit was $18.6 million, translating into a gross margin of 57.9%. Profitability below the gross-profit line was pressured by several sizable charges, including a $46 million impairment related to LsETH and $28.8 million of losses on digital assets.
The quarter also included a $5 million impairment of capitalized software assets. Interest costs added another layer of pressure as the company carried convertible notes, collateralized borrowing and other credit facilities. Total operating expenses reached $114.7 million in the second quarter.
BTBT's Liquidity Funds WhiteFiber Growth
Operating activities generated $46.8 million of cash during the first six months of 2026, up 33% from the comparable 2025 period. Cash and cash equivalents stood at approximately $83.6 million at June 30, with $27.5 million held by Bit Digital and $56.1 million at WhiteFiber.
Bit Digital also raised $50 million against part of its ETH treasury and used its balance sheet to provide WhiteFiber with a delayed-draw term facility carrying commitments of up to $150 million. The structure supplied capital for growth projects, including NC-1, without requiring an ETH sale or new equity issuance by either company. Contract liabilities rose to $143.1 million from $79.6 million at the end of 2025. The company doesn’t plan to sell WhiteFiber shares in 2026.
Peers including MARA Holdings, Inc. (MARA - Free Report) and Riot Platforms, Inc. (RIOT - Free Report) have also posted second quarter 2026 results.
MARA Holdings came out with a quarterly adjusted loss of 70 cents per share, wider than the Zacks Consensus Estimate of a loss of 56 cents. However, the bottom line improved from a loss of 81 cents per share a year ago. MARAposted revenues of $174.88 million for the quarter ended June 2026, which missed the Zacks Consensus Estimate by 16.1% and decreased from $238.49 million a year ago.
Riot Platforms posted a loss of 68 cents per share compared with the Zacks Consensus Estimate of a loss of 39 cents. Revenues of $174.2 million beat the $148.7 million consensus by 17.20%. It delivered AMD’s initial 25 MW in May on schedule and on budget, bringing recurring operating lease revenues onto the platform. Riot’s Engineering revenues reached $37.3 million, and gross margin was 27.5%.
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Bit Digital Q2 Earnings Miss Despite Revenue Beat on Cloud Growth
Key Takeaways
Bit Digital, Inc. (BTBT - Free Report) reported a second-quarter 2026 loss of 6 cents per share, wider than the year-ago loss of 3 cents and missing the Zacks Consensus Estimate of a 5-cent loss. Rising costs affected the bottom line.
Revenues rose 25.1% year over year to $32.11 million and beat the consensus mark by 47.9%. Growth was led by cloud and colocation services, while remaining performance obligations stood at approximately $1 billion at quarter-end.
Bit Digital, Inc. Price, Consensus and EPS Surprise
Bit Digital, Inc. price-consensus-eps-surprise-chart | Bit Digital, Inc. Quote
BTBT's Cloud Revenues Accelerate
Cloud services revenues increased 43.5% year over year to $23.8 million and rose 42% sequentially. The company attributed the year-over-year increase primarily to more deployed GPU servers serving new and existing customers. The segment generated an approximately 58% gross margin.
The termination of an agreement with an initial customer reduced monthly GPU service revenue, but a $12.3 million termination fee substantially offset that impact.
WhiteFiber, Inc. (WYFI - Free Report) also continued adding business. New multi-year cloud agreements signed since its previous earnings call carry more than $540 million in combined contract value. The signed contracts indicate the portfolio will likely generate over $200 million of annualized revenues after full deployment.
Bit Digital's Colocation Broadens Revenue Mix
Colocation services contributed $4.7 million in second-quarter revenues and maintained an approximately 63% gross margin. Revenues were nearly unchanged from the first quarter, while the first-half total increased 182% from the prior-year period. The NC-1 campus did not contribute to second-quarter results and is expected to begin adding revenues in the third quarter.
Mining continued to shrink as Bit Digital redirects capital elsewhere. The business generated $2.4 million in revenues from 32.3 bitcoin mined, down from 48.1 bitcoin in the preceding quarter.
BTBT's ETH Strategy Reshapes Revenues
ETH staking revenues totaled $0.9 million, up 147.4% year over year but below $2.3 million in the first quarter. Native staking produced 440.1 ETH during the quarter compared with 166.8 ETH a year earlier, helping offset the impact of a lower average ETH price.
The sequential revenue decline reflected a change in how the company deployed part of its ETH holdings. Bit Digital shifted ETH into liquid staking to provide collateral for financing tied to WhiteFiber. At June-end, the company held approximately 164,310.5 ETH, including ETH-equivalent positions associated with liquid staking and an externally managed fund.
Bit Digital Faces Heavy Cost Pressure
Second-quarter gross profit was $18.6 million, translating into a gross margin of 57.9%. Profitability below the gross-profit line was pressured by several sizable charges, including a $46 million impairment related to LsETH and $28.8 million of losses on digital assets.
The quarter also included a $5 million impairment of capitalized software assets. Interest costs added another layer of pressure as the company carried convertible notes, collateralized borrowing and other credit facilities. Total operating expenses reached $114.7 million in the second quarter.
BTBT's Liquidity Funds WhiteFiber Growth
Operating activities generated $46.8 million of cash during the first six months of 2026, up 33% from the comparable 2025 period. Cash and cash equivalents stood at approximately $83.6 million at June 30, with $27.5 million held by Bit Digital and $56.1 million at WhiteFiber.
Bit Digital also raised $50 million against part of its ETH treasury and used its balance sheet to provide WhiteFiber with a delayed-draw term facility carrying commitments of up to $150 million. The structure supplied capital for growth projects, including NC-1, without requiring an ETH sale or new equity issuance by either company. Contract liabilities rose to $143.1 million from $79.6 million at the end of 2025. The company doesn’t plan to sell WhiteFiber shares in 2026.
BTBT currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?
Peers including MARA Holdings, Inc. (MARA - Free Report) and Riot Platforms, Inc. (RIOT - Free Report) have also posted second quarter 2026 results.
MARA Holdings came out with a quarterly adjusted loss of 70 cents per share, wider than the Zacks Consensus Estimate of a loss of 56 cents. However, the bottom line improved from a loss of 81 cents per share a year ago. MARAposted revenues of $174.88 million for the quarter ended June 2026, which missed the Zacks Consensus Estimate by 16.1% and decreased from $238.49 million a year ago.
Riot Platforms posted a loss of 68 cents per share compared with the Zacks Consensus Estimate of a loss of 39 cents. Revenues of $174.2 million beat the $148.7 million consensus by 17.20%. It delivered AMD’s initial 25 MW in May on schedule and on budget, bringing recurring operating lease revenues onto the platform. Riot’s Engineering revenues reached $37.3 million, and gross margin was 27.5%.