Bit Digital Inc

Bit Digital reported second-quarter revenue of $32.1 million, up 15% from the prior quarter, while narrowing its net loss to $107.2 million from $146.7 million. The company funded its WhiteFiber data center buildout by borrowing $50 million against a portion of its Ethereum treasury and using that liquidity to originate a credit facility of up to $150 million for WhiteFiber, rather than selling coins or issuing new shares. Cloud services revenue jumped 42% from the first quarter to $23.8 million, colocation revenue for the first half climbed 182% from a year earlier, and contract liabilities more than doubled to $143.1 million from $79.6 million at the end of last year, with a backlog of roughly $1.0 billion. Since its last earnings call, WhiteFiber, the AI infrastructure and HPC subsidiary of Bit Digital, has signed new multi-year cloud services agreements worth more than $540 million in aggregate contract value, a pipeline management says could generate over $200 million in annualized revenue once fully deployed. Meanwhile, digital asset mining revenue fell 58% year over year over the first half, with bitcoin mined per quarter falling from 48.1 to 32.3, and Ethereum staking revenue fell from $2.3 million to $0.9 million in a single quarter. The company recorded a $46.0 million non-cash impairment on its liquid staked ETH holdings, convertible notes rose to $336.2 million, and the new WhiteFiber facility layers up to $150 million more on top, collateralized in part by $105.6 million of the company's own ETH holdings.

Barclays has identified Bit Digital as a company poised to benefit from the AI infrastructure buildout, citing expected significant increases in hyperscaler capital expenditure. The firm believes Bit Digital is essential to digital infrastructure expansion, noting the company has shifted from Bitcoin mining to providing cloud infrastructure for AI workloads. Bit Digital remains involved in crypto through its Ethereum treasury, which recently grew to approximately 158,461.75 tokens after a $20 million purchase of 8,568 Ether. The company provides AI infrastructure solutions via its majority-owned WhiteFiber, which builds and operates data centers for AI and high-performance computing.