BTBT Earnings Recap
Beat 0 of last 5 quarters
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Bit Digital's quarter underscores the convergence of digital asset treasury management and AI infrastructure financing. The bridge facility to WhiteFiber demonstrates creative capital recycling to fund data center buildouts without equity dilution. WhiteFiber's ~$1B backlog and new $500M+ in contracts signal sustained demand for HPC capacity, reinforcing the AI infrastructure buildout thesis.
Q2 revenue rose 15% sequentially to $32.1M, with cloud services up 42% to $23.8M. Net loss attributable to shareholders was $107M, including $28.8M digital asset mark-to-market loss, $46M non-cash impairment on liquid-staked ETH, $14M derivative liability loss, and $8.1M interest expense. The company raised $50M against a portion of its ETH and originated a delayed draw term facility for WhiteFiber with commitments up to $150M. Ethereum staking revenue fell to $0.9M from $2.3M sequentially due to collateralization and lower ETH prices. Bitcoin mining continued to wind down, with 32.3 BTC mined. Contract liabilities nearly doubled to $143.1M, and remaining performance obligations reached ~$1B.
Management emphasized a 'strategic asset company' model, using the balance sheet to finance WhiteFiber while preserving ETH exposure. They expect NC1 to begin contributing in Q3 and WhiteFiber to reach full contracted run-rate billing later this month under a 10-year Enovum agreement representing ~$865M of contracted revenue. WhiteFiber signed over $500M of new cloud contracts since last call. Management is evaluating a share buyback to address a persistent 40%+ discount to NAV, with sources of liquidity including the bridge facility repayment and potential future WhiteFiber share sales (not in 2026). They are also considering writing covered calls on a limited portion of WhiteFiber shares, subject to registration and board approval. The tone was confident but cautious on timing, with no formal guidance provided.
“The goal has never been to hold the most ETH. It is to get the most out of ETH that we hold.”
on Ethereum strategy
“We intend to take an active role in closing that gap. The board is evaluating those opportunities in real time alongside our liquidity needs and other priorities.”
on NAV discount and buyback
“We have no interest in a transaction that impairs an asset that we own the majority of.”
on WhiteFiber stake
What are the details on potential timing of a buyback and should we assume it would use the wind down of the WhiteFiber stake?
Samir said the board is actively considering a buyback but gave no exact timing. He reiterated the commitment not to sell WhiteFiber shares in 2026, citing 'greed' and belief in WhiteFiber's future. He noted that as WhiteFiber grows, future sales would bring more proceeds to Bit Digital.
Once NC1 permanent financing is completed, will the cash inflow be used for a significant buyback?
Erke explained that the bridge facility is short-term (90 days to half a year). Once NC1 financing is done, WhiteFiber will repay the bridge, and Bit Digital will unwind its collateral borrowing. That proceeds would not necessarily be used for a buyback; the return on the bridge is higher than staking. Sources of liquidity for a buyback are still undecided.
Share count increased by ~25 million shares. What were shares issued for this quarter?
Samir said the company would 'strongly hesitate' to issue equity at current levels. The ETH purchase and equity issuance were separate decisions; the ATM provided cash for construction spending. He noted that the widening discount changed capital priorities, leading the board to evaluate a buyback. Erke declined to provide specific ATM pricing, citing legal/technical reasons.