BTBT

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 10:30 a.m. ET Head of Investor Relations - Daniel Kelly Kennedy Chief Executive - Samir Tabar Chief Financial Officer - Erke Huang Operator: Hello, and welcome to the BIT Digital Second Quarter 26 Earnings Conference Call. We will begin shortly. Following management's remarks, we will open the line for questions. As a reminder, today's call is being recorded. I will now turn the call over to your host, Daniel Kelly Kennedy, head of investor relations at BitDigital. Daniel? Please go ahead. Daniel Kelly Kennedy: Thank you, and good morning. Joining me today are Samir Tabar, chief executive and Erke Huang, chief financial officer. Before we begin, I would like to remind everyone that today's discussion contains forward looking statements. These statements reflect management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks, please refer to our annual report on Form 10 ks and our quarterly reports. We assume no obligation to update these statements. Certain matters discussed today, including potential capital allocation initiatives, remain subject to board and shareholder approval in accordance with Cayman Island law where applicable. Throughout the call, we may also refer to non GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found in our earnings materials available on our website. Unless otherwise indicated, figures discussed during these remarks are rounded for readability. With that, I will turn the call over to Samir. Samir Tabar: Thank you, Daniel, and good morning. This quarter was about capital allocation. Every decision started with the same question. How do we create the most long term value from the assets already on our balance sheet? BitDigital is positioned to secure the-- for what we believe are the 2 most important sectors in economic history. Digital assets which will settle on Ethereum, and artificial intelligence, which is powered by data centers. Ethereum is our position in the first. And WhiteFiber is our position in the second. 2 distinct assets connected by 1 capital allocation model. Few companies offer meaningful exposure to both sides of that build out. And fewer even still actively allocate capital between them. Our conviction on Ethereum has not changed. The price did. Ethereum spent most of the quarter below 2,000. And I am not going to pretend that was comfortable. Bit Digital is 1 of the largest public corporate holders of Ethereum. That does not make us a digital asset treasury, and it is not what we are trying to be. The goal has never been to hold the most ETH. It is to get the most out of ETH that we hold. Neither purely AI infrastructure nor a digital asset treasury. Neither, and yet, both. What we are building towards is the convergence of the 2. Assets positioned for where the economy is going rather than where it is today. Our Ethereum treasury is managed the way a company manages cash like reserves. It earns while we hold it, and it becomes capital that can be put to work when the right opportunity appears. Unlike a traditional reserve, it generates a protocol native return and also serves as a source of liquidity. That is exactly what happened early in the quarter. WhiteFibers sought additional capital to bridge its investment in its flagship facility in North Carolina to permanent project financing and to support broader growth initiatives. Together, the companies evaluated a range of financing alternatives. They ultimately pursued a related party bridge facility. This provided WhiteFiber with efficient access to capital while preserving strategic flexibility and avoiding near term dilution. Against a portion of our Ethereum, we raised $50 million of liquidity and then used our own balance sheet to originate a delayed draw term facility for White Fiber. Commitments of up to 150 million guaranteed by the WhiteFiber parent. The transaction preserved our Ethereum position avoided issuing equity at either company, and allowed us to maintain our ownership interest in WhiteFiber. Independent committees at both companies reviewed it and Needham and Seaport delivered fairness opinions to their respective boards. We chose to provide the facility because it offered an efficient way to support our investments in white fiber, while generating an attractive return above the staking yield available on Ethereum. The principal risk in a structure like this is, of course, margin call. That was considered as well, so an additional buffer of Ethereum is held against it size to withstand market moves well beyond what we consider reasonable. The facility was designed as a temporary bridge to permanent financing for the initial 40 megawatt build out in our flagship facility in North Carolina. That facility is anchored by Enovum and its investment grade off taker. Upon permanent financing, our collateral is released and the guarantee terminates. The facility is repaid with interest more than the staking income that we gave up and without giving up any upside. 1 decision in 1 quarter. But it contains the essence of the strategy. We approach our assets differently than a buy and hold treasury. Because every dollar every ETH, and every share should be maximally productive. And that is what we mean by a strategic asset company. The assets themselves are not the differentiator. It is how we deploy them. Eric will now take you through the details of the quarter. Erke Huang: Thank you, Sam. Good morning, everyone. Our results consolidate WhiteFiber in full. With a portion attributable to noncontrolling interests. Second quarter revenue was $32.1 million up 15% from 27.9 million in the first quarter. For the 6 months, revenue was $60 million up 18% year over year. Gross profit for second quarter was $18.6 million a gross margin of 57.9%. Operating cash flow for the 6 months was $46.8 million up 33% from 35.1 million in the same period last year. Net loss attributable to BitDigital shareholders was a $107 million or 31¢ per share. Taking together, the digital asset items the derivative reevaluation, and interest expense. Account for approximately $86 million of the loss. I will take each in turn. Turning to our operating segments. Cloud services revenue was $23.8 million up 42% sequentially. Driven by new contracts entering service and expansion of existing agreements. For the 6 months, cloud services revenue increased 29% year over year. At a gross margin of 58%. Colocation services revenue for the second quarter was $4.7 million essentially flat sequentially. With a 63% gross margin. For the first half. Colocation revenue increased 182% year over year. NC 1 is not yet reflected in those results. And expected to begin contributing in the third quarter. Ethereum staking revenue was $900 thousand compared to $2.3 million in the first quarter. Though for the 6 months, staking revenue increased 246% Year over year. We earned 440 in stake rewards during the quarter against 949 in the first. The sequential decline reflects a decision to stake a portion of Ethereum to collateralize the facility Samir described. As well as the decline in Ethereum price during this quarter. Digital assets mining revenue was $2.4 million on 32.3 Bitcoin mined. Compared to 48.1 Bitcoin in the first quarter. For the 6 months, mining revenue declined 58% year-over-year as expected. As we continue to wind down that business. It remains solid today, gross margin positive and 26% for the second quarter. Turning to the items that do not reflect operating performance. We recorded $28.8 million of loss on digital assets carried at fair value, reflecting market to market movement on our Ethereum and Bitcoin holdings. We also recorded a $46 million noncash impairment on liquid state fees. Used in the WYFI over financing transaction. That reflects the accounting treatment of the position and does not represent a realized loss. Separately, there was a $14 million loss from the change in fair value of the derivative liability associated with our convertible notes. And $8.1 million interest expense neither reflects operating performance. Turning to the balance sheet and treasury. On May 11, we purchased 8.57 thousand ETH for $20 million at an average cost of $2.33 thousand per ETH. And sold out during the quarter. Now to break down the positions as of June 30. We held 75.8 thousand ETH directory carry a fair value of $118.9 million. That includes ETH made stake, through our validator partner. In April, we liquid-staked 73.2 thousand ETH and received 66.2 thousand LST tokens exchange. We also saw the data exposure through an ETH-hold Ethereum exposure through an externally managed bound. Carried at $47.9 million within investment securities. Liquid staked ETH, is a separate asset from ETH for accounting purposes, which is why it sits on its own line under a different measurement basis. Our underlying economic exposure remains unchanged. Cash and cash equivalents were approximately $83.6 million on a consolidated basis. Of which approximately $27.5 million was held at BitDigital, and $56.1 million in WhiteFiber. Contract liabilities nearly doubled to $143.1 million from $79.6 million at year end. That represents revenue already contracted and cash already collected for services we have yet to deliver. Finally, remaining performance obligations were approximately $1 billion at quarter-end. We expect to recognize approximately $57.7 million across the balance of 2026, $136.7 million in 2027, and $105.1 million in 2028 with the remainder thereafter. To put that in context, the 2027 figure alone is more than we earned in all of 2025. None of it appeared in the revenue line today. With that, I will turn the call back to Samir. Samir Tabar: Thank you, Eric. We own Ethereum because we believe that will appreciate over time and generate attractive long term returns for our shareholders. That has always been part of our investment thesis. The second quarter was the third consecutive quarter Ethereum closed lower. But volatility is not new to us. We operated through multiple market cycles and our approach has remained consistent throughout all of them. We also share the belief that the market price of ETH has yet to reflect the value of the network. In our view, it is undervalued relative to what it is becoming. The fundamentals moved in 1 direction this quarter the price moved in the other. That disconnect has not gone unnoticed. Across the Ethereum ecosystem, there is growing recognition that the success of the network and the performance of the asset are closely linked. Economics matter. The bull case for ETH is not standing still. Robinhood launched its own layer 2 on Ethereum, supporting a platform with roughly 28 million customers and $370 billion in assets. With fees paid in ETH. BlackRock launched 2 tokenized money market products this month. And JPMorgan continues to expand its own tokenization footprint. Tokenized real world assets on public block chains now surpass $31 billion with roughly 2-thirds settling on Ethereum. And the institutional layer around the network keeps building, Ethereum Institutional, which launched with more than 500 institutional relationships, alongside EAP Labs, EAP Systems, and Etherealize. These are not isolated announcements. Financial activity is migrating onto programmable settlement rails and as that activity grows, so does the demand for Ethereum's block space. Its security, and its native asset. We remain confident the value of the asset will ultimately converge with its growing utility and adoption. That conviction shaped 1 of our most important decisions this quarter, Rather than selling Ethereum or issuing equity, we used our balance sheet to finance WhiteFiber while preserving our long term exposure to the ETH asset. The next phase is execution. We expect the third quarter to begin reflecting what we have been building. Turning briefly to white fiber, our other major strategic asset. Our conviction in its long term potential remains very strong. And as previously stated, we do not intend to sell WhiteFiber shares this year. But the same standard applies here as everywhere else. We look for ways to make a position productive without reducing it. 1 approach under evaluation is writing out of the money covered calls against a limited portion of our holdings to generate premium income. That would require registering those shares. Registration creates flexibility. It is not a step towards exiting. Any such program would be modest in scope and subject to Board approval. And we would retain substantial long term exposure. We have no interest in a transaction that impairs an asset that we own the majority of. We had White Fiber's quarterly call yesterday, and I strongly recommend that you listen to it. It is posted on X. But I will mention a few words here. White Fiber is entering an important growth phase across both colocation and cloud services. At White Fiber's flagship facility, initial capacity has been delivered Customer deployment and testing is underway, and billing has commenced. White Fiber expects to reach the full contracted run rate billing later this month under its 10-year agreement with Enovum representing approximately $865 million of contracted revenue. White Fiber is also expanding a substantial development pipeline and focusing its resources on the opportunities best for it to move-- excuse me, best positioned to move forward. At NC1, our flagship facility, reaches full contracted operations WhiteFiber is pursuing permanent project financing that, if completed, would allow us to recycle the capital that we invested in North Carolina into the next data center. That is how the flywheel begins to turn. Develop infrastructure, secure long term customers, finance stabilized assets, and redeploy capital into the next opportunity. Momentum in cloud services has also accelerated, since our last earnings call WhiteFiber has signed new contracts representing more than $500 million of aggregate contract value. Including the next generation GPU deployments and a capital efficient managed services agreement. So for BitDigital, for BitDigital shareholders, that means an increasingly valuable operating asset with greater revenue visibility stronger cash flow potential, and the ability to fund its own growth. That is the model at both levels. Our strategy has never been to passively accumulate ETH. It is to build a productive balance sheet assets that earn while they appreciate, assets that finance operating businesses, businesses that generate recurring cash flow, and cash flow that gets reinvested into productive assets. That is our strategic asset flywheel. And we believe we are early. Early to running a company where the treasury itself is productive capital rather than a static position. We expect that to become a more common model. We intend to be further along when it does. The transition in our business is already visible. Infrastructure and staking now represent 89% of our revenue, against 70% a year ago. Capital is moving out of our mining business with limited terminal value and into assets that produce. Our operating results improved through the quarter. Our valuation did not. Today, the market is to value BitDigital primarily as a digital asset treasury. A treasury strategy is fundamentally passive. You buy the asset, You hold it. You wait for the next cycle. that is not what happened here. We allocated capital We financed an asset we already own. We preserved our Ethereum position, and we avoided dilution at both companies. Those are growth company decisions. Yet our valuation continues to reflect a passive treasury That is a fundamental disconnect. Using observable market values for the assets that we own, we believe that digital continues to trade at a significant discount to its intrinsic value. We monitor that discount closely. Daily. It has been persistent. And at times, it has exceeded 40%. By our calculations. At this discount, buying our own equity is 1 of the highest return uses of capital available, And the wider the gap, the more accretive it becomes. 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. Addressing the discount also expands what we can do next. We continue to look for opportunities to deploy capital into revenue-generating businesses. And based on our current analysis, 1 conclusion stands out the best investment available to BitDigital may be ultimately BitDigital itself. To our long term shareholders, the reason to own Bit Digital is to gain exposure to the settlement layer of digital finance combined with the HPC infrastructure that will run on top of it. This is all supported by a productive balance sheet that allocates the capital it generates into additional strategic assets. That is the strategic asset company model. Markets can take time to recognize a differentiated model. But when the underlying assets begin producing visible cash flow, and management demonstrates that we will actively defend value per share that recognition can happen quickly. We believe BitDigital is soon approaching that point. And if the market will not close the gap between what we own and how it is valued, we are considering closing it ourselves. We will now open the line for questions. Operator: Thank you. If you are using a speakerphone, please make sure your mute function is turned off. To allow your signal to reach our equipment. Once again, *1 for questions. We will go first to Nick Giles with B. Riley Securities. Nick Giles: Hi, Nick. Thanks, operator. Hi, guys. Appreciate the update. Samir, it was really interesting to hear you just speak to the prospect of a buyback there. I was just hoping for more details on potential timing, you know, when the board ultimately make a decision on something like that, and then should we assume that it would be using the wind down of the WYFI stake? I heard you kind of recommit to maintaining, that ownership position in 2026. So should we think about this as more of a 2027 type of event? Thanks. Samir Tabar: Thanks, Nick. I cannot I cannot give details on the exact timing of that. The board is still considering how and when to do that. But I can tell you that it is a very vigorous discussion that we are having We think the 40% or sometimes even 43% discount to NAV is unacceptable and makes no sense. So the way to close that, obviously, is considering a buyback You are right. We did today recommit to not selling our shares in white fiber. And the and the reason for that is frankly, greed. We believe that WhiteFiber is gonna do extraordinarily well. And we just do not want to sell down that position prematurely. That would that would be shooting ourselves in the foot. So we are very excited by White Fiber's progress. We believe that the market capital continue to be favorable in terms of size and growth. And we are very excited by WhiteFiber's future And, of course, as white fiber becomes larger, when we start selling down that position, it will be even more proceeds that come to BitDigital. Which is a very positive thing for the BitDigital shareholder. So time is our friend there. And I cannot give you the exact time, but we are we are talking about it quite often. Nick Giles: And we look forward to future announcements once we get some clear visibility on how and when Well, that is, that is very good to hear. I appreciate that perspective, Samir. I think just next question was you spoke to the different ways you are using the balance sheet, kind of getting creative there. And I heard you mentioned the covered calls. Just was curious on potential timing around that opportunity and how you kind of, would frame up returns on doing that. Thanks. Samir Tabar: Yeah. Eric, do you wanna take that question? Erke Huang: Sure. In terms of timing, I think we are coordinating with WhiteFiber for registration statements potentially later this quarter. And we are working with a few banks for your execution So, currently, we do not have a exact, like, pricing yet. But we should be able to talk about it, and we would have the registration done. And more proposals in their execution on our desk. Nick Giles: Understood. Okay. Well, thanks again for the update. I will turn it over. Operator: Thank you. We will take our next question. From George Sutton with Craig Hallum. Hi, George. George Sutton: Thank you. Hey, Samir. Here. So I am confident that you will soon have a facility on NC1. And, can you just walk through the scenario of that happening Let's hypothetically assume that has happened. You will then get an inflow of cash. I assume that would be a part of the fuel for a significant buyback. Am I thinking about that the right way? Samir Tabar: I will let Eric talk about it, but just high level. The buyback can come you know, there are multiple sources of liquidity for a potential buyback. Of course, there is that, but there is also selling down our white fiber shares in the future. So there are different sources of liquidity, not just not just this facility being paid back. But I will I will hand it over to Eric so he can double click on that. Erke Huang: Yeah. For the Bridge facility, we had with WhiteFiber as relatively short term. it is, you know, 90 days to, like, half a year towards the end of this year. So once the NC1 M&A financing done, then YFiber will obviously pay back our bridge and we will use you know, the proceeds we received to unwind our collateral you know, borrowing with DAX in this scenario. So not necessarily using to do a buyback. But this is generating the additional revenue for the digital in a meaningful way compared to you know, native staking. We are we are still trying to figure out what source of liquidity we will do to consider a buyback. it is it is it has not been decided yet. But I do wanna highlight that the return that we got on the bridge facility is higher than what we would have got would have received on staking. George Sutton: Understand. And sorry to get geeky on Ethereum, but couple of things I am just curious your thoughts on. EIP-7.7 thousand which would reduce the e issuance relative to staking. Just curious thoughts on that. And then also on the Pectra Hardfork coming up later this year. What do you think that does for Ethan, your stake? Samir Tabar: I have been looking at the Ethereum ecosystem and what is happening on the on the moves that are being taken to promote the price of Ethereum. So as mentioned, there is been some companies that have launched recently, like ETH Institutional, Etherealize, and 2 other companies such as ETH Labs and ETH Systems. And those companies are focused on not the geeky part of Ethereum, but rather getting institutional adoption accelerated and protecting and promoting the price out there. So that is where my focus has been, and I have not been really focused on the engineering aspect. Of Ethereum Blocks space. So I am I am not informed enough to give you a good answer on those questions. George Sutton: Okay. Thank you. Operator: Thank you. We will take our next question from Brian Dobson with Clear Street LLC. Hi, Brian. Brian Dobson: Hey. How are you doing? So in the press release, you mentioned, of course, that white fiber is a is a core holding. Would you consider selling just a portion of it in order to finance repurchasing and take advantage of the valuation discrepancy between the between the 2 stocks. And I guess I on that on that subject, is there is there anything in your, call it, portfolio potential investments that in your view, might generate a greater return than repurchasing the digital shares? Samir Tabar: Well, we think that repurchasing could be a pretty good investment. But, again, that is that is that is a discussion happening at the board. And going back to your question about whether we would use the proceeds from selling down WhiteFiber and buying back our shares. That is definitely something we are considering. But in terms of the timing, I do not think we are gonna be we will be doing that We will not be using proceeds from WhiteFiber to do that. Only because we have already committed to the markets that we will not be selling down our white fiber shares this year. If we were to do a buyback program this year, it will not be with the proceeds of WhiteFiber. But we have no idea what the timing of the we are we are just considering it. We are just talking about it. it is on our menu. And it is a it is a very attractive dish on our menu. For obvious reasons. But in terms of whether we do it and if the timing is still up in the air. Brian Dobson: Yeah. Very good. And then yesterday's WhiteFiber call was very positive. The tone of forward business was very encouraging. I suppose, as that as that part of the business, as that company continues to gain traction? You think that will help to erode the NAV discount that BitDigital is experiencing? Samir Tabar: Well, I think so. I mean, look. If you if you compare-- I do not want to-- this is kind of a tough thing to say. But if you compare BitDigital to its peers? Now we are not a digital asset treasury company, so it is a bit apples to apples. But we are performing we are outperforming on a relative basis. And I and I think a lot of that has to do with the white fiber holding. So I think it the WhiteFiber holding very much helps the share price. I cannot talk too much about the share price, but I think it is it is a positive thing towards the share price. But it does sometimes create a larger disconnect on the nav And it is-- and that is why we think there is a capital markets disconnect on BTBT, and we are thinking about correcting it by considering a buyback program because of that disconnection. Brian Dobson: Yeah. Very good. Thanks a lot. Operator: Yeah. We will take our next question from Raymond Jones with B. Riley Securities. Raymond Jones: Thanks for the call today. If we can talk for a second about I guess, the opposite of a buyback, It looks like share count went up about 25 million shares in the last quarter. And I know you said you did not issue shares for the white fiber allocation or to fund Ethereum purchases. Wondering if you can just talk a little bit about what were shares issued for this quarter. Samir Tabar: Yeah. I mean, look, we would strongly hesitate to issue equity at these levels today. That there would be some pretty strong hesitation. Our capital priorities changed as the discount widened through the quarter. And that change is exactly why the board is now evaluating a buyback program. The Ethereum purchase and equity issuance were separate decisions. We bought Ethereum to lower our average cost while the ATM provided cash for construction spending. Each decision made sense based on the circumstances at the time. I think what changed is the gap between our market value and the value of our assets. That is the allocation test working, and it now points somewhere other than it did in spring. Raymond Jones: Okay. What was the approximate at the money sales pricing? Samir Tabar: Eric, are we I will I will leave that with Eric. I do not have that. Exact data point, and I am unsure if we are Yeah. Operator: Could you, yeah, could you repeat your question again? Erke Huang: I am sorry. Raymond Jones: Yeah. And I guess, really, my question is relative to the discount. So I know you have said 40% or more is way out of line. Was wondering if we can expect you may issue shares for corporate purposes at a 10% or 20% discount, but buy them back in at a 30% or 40% discount? Samir Tabar: I see. it is not it is not a I understand your question. Now. it is not a there is no certain number in mind. It will depend on what those purposes are and if the purpose is are for a better return than where the discount is, then, obviously, we will we will we would think about it. But there is no specific number in mind that we have. We there is no there is no, like, oh, it is minus it is, like, a 20%, disconnect now. We can we can use the ATM. We do not think of it that way. it is not it is not a quantifiable number and yeah. Erke Huang: And, of I just want to add probably, for technical reasons and legal reasons, we Yeah. Do not want to bring our passing information, like, what sort of trading our own stock. So, like, in a sense, that, you know, all the decisions are made based on you know, certain so circumstances, based on your working capital allocation, etcetera. And we try to make decisions as long term as possible. We Not be able to justify, like, the short term commitments. Analyst: that is right. Raymond Jones: Okay. So the dilution this quarter, Alright. Sorry. Thanks, guys, for your time today. Operator: Thank you. Thank you. With no additional questions in queue at this time, I would like to turn the call back over to Samir for any additional or closing remarks. Samir Tabar: Thank you for joining us today. We appreciate your continued interest and support. We look forward to speaking with you again next quarter. This officially concludes our call, and have a great day. Operator: Thank you. That will conclude today's call. We appreciate your participation. 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Interested in Bit Digital, Inc.? Here are five stocks we like better. Cloud services drove growth: Second-quarter revenue rose 15% sequentially to $32.1 million, with cloud services revenue up 42% to $23.8 million. Colocation revenue was stable, while Bitcoin mining and Ethereum staking revenue declined. Ethereum-backed financing supported WhiteFiber: Bit Digital raised $50 million against Ethereum holdings and arranged up to $150 million in delayed-draw financing for WhiteFiber’s 40-megawatt NC1 data-center build-out, helping preserve its Ethereum position and avoid equity issuance. Strong contracted backlog but significant reported loss: The company posted a $107.2 million net loss, largely due to non-operating digital-asset, impairment and derivative charges, while reporting roughly $1 billion in remaining performance obligations and more than $500 million in new WhiteFiber contract value since the prior call. 3 Stocks Under $20 to Buy Before a Broader Market Rally 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. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Crypto’s Crash May Be Over—These 3 Picks Could Rebound Fast 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. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand 3 Ways to Test the Crypto Market Without Owning Bitcoin 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. → On Holding's Price Stumble May Be an Opening for a Company Built to Run 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. 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. 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. 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. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bit Digital Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Bit Digital, Inc. BTBT 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-eps-surprise-chart | Bit Digital, Inc. Quote 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 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. 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. 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. 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. 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. Peers including MARA Holdings, Inc. MARA and Riot Platforms, Inc. RIOT 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%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bit Digital, Inc. (BTBT) : Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report Riot Platforms, Inc. (RIOT) : Free Stock Analysis Report WhiteFiber, Inc. (WYFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management defines BitDigital as a 'strategic asset company' rather than a passive treasury, actively moving capital between digital assets and AI infrastructure. The company utilized its Ethereum holdings as productive collateral to originate a $150 million delayed draw term facility for WhiteFiber, avoiding equity dilution at both entities. Performance attribution for the quarter was driven by a 42% sequential increase in Cloud Services revenue as new contracts entered service and existing agreements expanded. Management views Ethereum as a 'protocol native' reserve that generates yield while providing liquidity for opportunistic investments in high-growth sectors like AI data centers. The strategic shift involves winding down the legacy Bitcoin mining business, which has limited terminal value, to focus on assets with recurring cash flow and long-term appreciation. A significant valuation disconnect was identified, with management noting the stock trades at a discount to intrinsic value exceeding 40% based on observable market assets. The third quarter is expected to reflect the full operationalization of the NC1 flagship facility, reaching a full contracted run rate billing under a 10-year agreement representing approximately $865 million of total contracted revenue. Management is pursuing permanent project financing for stabilized data center assets to recycle capital into a development pipeline of new infrastructure opportunities. The company is evaluating a program to write out-of-the-money covered calls against a limited portion of WhiteFiber holdings to generate premium income without exiting positions. Future revenue visibility is supported by approximately $1 billion in remaining performance obligations, with $136.7 million expected to be recognized in 2027 alone. Strategic conviction remains high for Ethereum, with management anticipating price convergence as financial activity migrates to programmable settlement rails. A $107 million net loss was primarily driven by $86 million in non-operating items, including mark-to-market digital asset losses and derivative revaluations. A $46 million non-cash impairment was recorded on liquid staked ETH used in the WhiteFiber financing, though management clarified this is an accounting treatment rather than a realized loss. To mitigate margin call risks on the WhiteFiber bridge facility, the company maintains an additional buffer of Ethereum sized to withstand extreme market volatility. The company committed to not selling any WhiteFiber shares through the remainder of 2026, prioritizing long-term equity appreciation over near-term liquidity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the board is vigorously discussing a buyback program to address the 'unacceptable' 40% plus discount to Net Asset Value. While timing is not finalized, liquidity for such a program could come from multiple sources, including the repayment of the WhiteFiber bridge facility or future asset sales. The company plans to file registration statements later this quarter to enable writing covered calls, aiming to generate yield on its majority stake. Management emphasized that registration creates flexibility for income generation and is not a step toward exiting the core investment. Management expressed strong hesitation to issue equity at current valuation levels, noting that capital priorities shifted as the market discount widened. The 'allocation test' currently points toward BitDigital itself being the most attractive investment available to the company.

Three crypto companies, Bitdeer (BTDR), Forward Industries (FWDI), and Bit Digital (BTBT), report quarterly earnings this week, each coming off a quarter deep in the red. The three prints span exposure to major tokens, including Bitcoin (BTC), Solana (SOL), and Ethereum (ETH). All three assets fell last quarter, likely driving heavy paper losses. Now the earnings will show how deep the damage ran. Bitdeer opens the week on Monday. It will report its second-quarter 2026 results before the US market opens on Monday, August 10, at around 7:00 a.m. ET In the first quarter, Bitdeer reported a $159.5 million net loss, pressured by weaker cryptocurrency prices. Revenue, however, rose to $188.9 million, while adjusted EBITDA remained positive at $14.4 million. The second-quarter results come amid a strong period for Bitdeer shares. BTDR gained roughly 83% during Q2, significantly outperforming Bitcoin, which fell 14.08% over the same period. The company’s mining output also surged. June production reached 990 BTC, up 388% year-over-year. Moreover, Bitdeer has continued to expand its AI infrastructure push. In June, its subsidiary signed a colocation lease for its Tydal AI data center in Norway. It also broke ground on an Alberta facility. Follow us on X to get the latest news as it happens Forward Industries will report its fiscal third-quarter results on Wednesday. In fiscal Q2, the company posted a $283.1 million net loss, largely due to Solana-related write-downs. Revenue more than quadrupled year-over-year to $13.0 million. Forward previously disclosed that it acquired more than 500,000 SOL during fiscal Q3 at an average price of about $79 per token, lifting its Solana treasury to 7.55 million SOL. The purchases helped fuel a rally in the company’s stock. Despite that boost, Forward was the only decliner among the three stocks during the quarter, falling about 5% between April and June. The decline was smaller than Solana’s roughly 11.4% drop. Bit Digital closes the week on Thursday before the open. The Ethereum treasury firm reported a net loss of $146.7 million last quarter as Ethereum's price downturn cut deep. A $121.1 million hit on digital assets drove most of the damage. Revenue fell 13.6% to $27.9 million, and the firm held about 155,444 ETH. The stock still recovered. Bit Digital rose about 37% in the second quarter, diverging from ETH’s 25.3% dip. Together, the three reports test one question. Each firm holds tokens that fell last quarter, and the earnings will show how deeply those drawdowns cut into results. Subscribe to our YouTube channel to watch leaders and journalists provide expert insights https://youtu.be/bvGprKRZSDg Read the Original story 3 Crypto Earnings to Watch This Week After Q1 Losses by Kamina Bashir at beincrypto.com

In recent days, Bit Digital, Inc. has drawn heightened attention as investors react to analyst expectations of a quarterly loss and a Zacks Rank #5 (Strong Sell), signaling concerns about its near‑term earnings outlook. This surge in search interest highlights how quickly sentiment around digital-asset firms can shift when consensus points to weaker profitability ahead. Now, we’ll examine how this cautious earnings outlook and Strong Sell rating interact with Bit Digital’s existing Ethereum-focused investment narrative. Capitalize on the AI infrastructure supercycle with our selection of the 48 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own Bit Digital today, you need to believe in its pivot toward an Ethereum‑centric treasury and staking model, and its ability to turn that focus into sustainable, fee‑based income. The new expectation of a quarterly loss and the Zacks Rank #5 (Strong Sell) primarily amplify short term earnings concerns rather than altering the core ETH‑driven thesis. However, they do sharpen attention on the biggest near term risk: continued losses paired with reliance on external capital to grow ETH exposure. Against this backdrop, the large follow on equity offerings announced in 2025, including the at the market program of up to US$500,000,000, look even more relevant. These raises support Bit Digital’s plan to scale ETH holdings, but they also underscore dilution risk if more shares are issued while the company is unprofitable. For investors, the tension between funding growth and protecting per share value sits at the heart of the current catalyst story. Yet behind the ETH upside story, the combination of expected losses, heavy ETH concentration, and potential future dilution is something investors should be aware of... Read the full narrative on Bit Digital (it's free!) Bit Digital's narrative projects $376.7 million revenue and $35.3 million earnings by 2028. Uncover how Bit Digital's forecasts yield a $5.12 fair value, a 177% upside to its current price. Some of the most optimistic analysts once projected revenue reaching about US$434,300,000 and earnings of roughly US$41,400,000, which is far more upbeat than today’s cautious focus on ETH concentration and dilution risk. If you are weighing Bit Digital now, it is worth recognizing how much those bullish views contrast with the recent loss expectations, and considering that both perspectives may shift as new information comes through. Explore 8 other fair value estimates on Bit Digital - why the stock might be worth over 6x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Bit Digital research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision. Our free Bit Digital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bit Digital's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 13 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. We've uncovered the 10 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BTBT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Total Revenue: $27.9 million for Q1 2026, a decrease of 13.7% quarter-over-quarter. Cloud Services Revenue: $16.8 million, down 13.1% quarter-over-quarter. Caucasian Services Revenue: $4.8 million, up 23.9% quarter-over-quarter. Ethereum Staking Revenue: $2.3 million, down 29.4% quarter-over-quarter. Digital Asset Mining Revenue: $3.7 million, down nearly 33% quarter-over-quarter. Net Loss: $146.7 million in Q1 2026, compared to $185.3 million in Q4 2025. Cash and Cash Equivalents: $79.5 million as of March 31, 2026. Digital Assets: $295 million at quarter-end, down from $415.7 million as of December 31, 2025. Ethereum Holdings: Approximately 155,444.41 Ethereum as of March 31, 2026. Market Value of Ethereum Holdings: $327 million as of March 31, 2026. Convertible Notes: Increased to $334 million. Warning! GuruFocus has detected 5 Warning Signs with BTBT. Is BTBT fairly valued? Test your thesis with our free DCF calculator. Release Date: May 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bit Digital Inc (NASDAQ:BTBT) is advancing its strategic asset transition, focusing on Ethereum treasury and staking, AI infrastructure, and disciplined capital allocation. The company maintains a significant ownership position in White Fiber, a core strategic asset providing exposure to AI infrastructure. Bit Digital Inc (NASDAQ:BTBT) is strategically positioned to capitalize on the convergence of AI and Ethereum, viewing compute as a new asset class. The company has been approved by the Ethereum Foundation to purchase ETH directly, validating its long-term commitment to the Ethereum ecosystem. Bit Digital Inc (NASDAQ:BTBT) is actively evaluating strategic acquisition opportunities to expand its infrastructure and treasury strategy. Total revenue for Q1 2026 decreased by 13.7% compared to Q4 2025, reflecting a decline in several revenue streams. Ethereum staking revenue dropped by 29.4% quarter-over-quarter due to lower average Ethereum prices and lower staked balances. Digital asset mining revenue fell by nearly 33% quarter-over-quarter, impacted by lower Bitcoin production and prices. The company reported a net loss of $146.7 million in Q1 2026, although this was an improvement from the previous quarter. Cash and cash equivalents decreased significantly from $118.4 million at the end of 2025 to $79.5 million as of March 31, 2026. Q: BTBT is trading at a discounted MNAV. What valuation do you need to see before considering strategic acquisitions, and what would be the size of these targets? A: Samir Tabar, CEO: The crypto industry is currently trading at compressed valuations, making it a good time to consider acquisitions. We are looking for businesses that align with our digital strategy and add revenue. Potential targets include trading firms, Ethereum-adjacent infrastructure companies, or those involved in the Agentic economy. We are actively seeking candidates and may pursue more than one acquisition. Q: Would you use cash on the balance sheet for acquisitions given BTBT's trading discount to NAV? A: Samir Tabar, CEO: Yes, using cash on the balance sheet is a fair summary. Eric Huang, CFO, agrees with this approach. Q: How do you view new privacy-focused blockchains as competitors to Ethereum? A: Samir Tabar, CEO: Network effects are crucial, and it's challenging for private blockchains to achieve them. I don't have enough knowledge about specific blockchains like Canton to provide a detailed opinion. Q: In a more conducive market environment, would you maintain leverage at 20% of Ethereum balances, and is unsecured debt still preferred? A: Erke Huang, CFO: Yes, we continue to use 20% as a metric for leverage decisions. Unsecured debt remains a preferred option, but equity is also a tool we can use, especially with acquisition targets. Q: What do you envision Bit Digital will look like in two years? A: Samir Tabar, CEO: We expect the intersection of AI and Ethereum to remain strong. We aim to participate in these trends, focusing on Agentic AI and Ethereum as a natural home for counterparties to interact. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Bit Digital (BTBT) just delivered Q1 2026 results that combined higher reported revenue with a wider net loss, landing right as investors were already focused on its Ethereum and AI infrastructure plans. See our latest analysis for Bit Digital. That mix of Ethereum and AI infrastructure headlines, plus the Q1 loss, has coincided with sharp swings, including a 15.26% one day share price decline and a 17.97% 30 day share price gain. However, the 1 year total shareholder return is down 24.16%, signalling momentum that has been choppy rather than firmly established. If Bit Digital's crypto and AI tilt has your attention, it can be worth scanning other blockchain linked opportunities using our cryptocurrency and blockchain stocks screener 24 cryptocurrency and blockchain stocks With Bit Digital reporting US$27.92 million in quarterly revenue, a net loss of US$146.67 million, a recent share price of US$1.81 and an analyst target of US$4.80, is there genuine value on the table, or is future growth already priced in? Bit Digital's most followed narrative pegs fair value at $5.13 per share versus the recent $1.81 price, setting up a wide valuation gap that hinges on a handful of big assumptions. Read the complete narrative. Want to see what justifies a fair value nearly triple the current price? The narrative leans on rapid revenue expansion, margin repair, and a punchy future earnings multiple. Curious which specific growth and profitability assumptions have to hold for that gap to make sense? The full narrative lays out the exact path those numbers follow. The fair value in this widely followed narrative is built using a discount rate of 8.69% and leans heavily on high forecast revenue growth, improved profit margins, and a lower future P/E than earlier versions of the model, all while keeping fair value at $5.13 despite a higher required return. Result: Fair Value of $5.13 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this hinges on Ethereum concentration and reliance on equity funding, where weaker ETH pricing or heavier dilution could quickly challenge those optimistic margin and valuation assumptions. Find out about the key risks to this Bit Digital narrative. Mixed signals on value, risk, and future potential can be exactly when careful investors do their best work. If this story interests you, look through the underlying assumptions, stress test the forecasts, and then weigh Bit Digital's balance of 2 key rewards and 5 important warning signs. Do not stop at a single stock story. Use screening tools to find fresh ideas that fit your style before the next move passes you by. Target potential mispricings by scanning companies that combine quality metrics with attractive valuations through the 49 high quality undervalued stocks. Strengthen your shortlist by focusing on companies with robust cash positions and low leverage using the solid balance sheet and fundamentals stocks screener (45 results). Get ahead of the crowd by filtering for lesser known opportunities with strong fundamentals via the screener containing 22 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BTBT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, April 1, 2026 at 7 a.m. ET Chief Executive Officer — Samir Tabar Chief Financial Officer — Erke Huang Operator Need a quote from a Motley Fool analyst? Email [email protected] Samir Tabar: Thank you, Cam, and thank you for everyone for joining. I'll start with our progress in 2025 and how we are positioning the business. We repositioned the company as a strategic asset company or SAC, centered on Ethereum and AI infrastructure. We began exiting Bitcoin mining, built a scaled ETH position and established WhiteFiber as a core asset. Let me start with our Ethereum strategy. We view ETH as core infrastructure, a productive asset, not a passive holding. It allows us to participate directly in network activity through staking within a disciplined risk framework. For investors, Bit Digital provides a yield-generating way to gain productive exposure to the broader Ethereum network. We combine treasury ownership and staking income and disciplined capital allocation. Our focus is on increasing ETH per share, not just growing the balance. We are not optimizing for short-term scale. We are optimizing for long-term compounding. We approach this through a risk-adjusted lens, prioritizing security, liquidity and counterparty quality, while identifying opportunities to enhance returns. The recipe includes capital efficiency, yield generation and long-term compounding. Our ETH position has grown more deliberately than some others in the market, that is intentional. We believe this approach allows us to scale over time without compromising the balance sheet. We've also been deliberate in how we deploy capital across market conditions. We are not accumulating ETH at any price. We are disciplined with how we use equity with a focus on long-term value per share. We are seeing more opportunities to deploy capital, but we will only do so if it's accretive per share. We continue to believe Ethereum is foundational infrastructure for digital assets and on chain financial activity and that its role will expand over time. We expect staking income to become a meaningful and recurring contributor to cash flow. Staking revenue grew nearly 300% in 2025. Nearly half of our full year staking revenue was generated in the fourth quarter, reflecting the scaling of our ETH position over the course of the year. Turning briefly to Bitcoin mining. We continue to wind down the business in a deliberate manner. As of year-end, our active hash rate was approximately 1.5x exahash. We are not allocating growth or replacing capital to this segment. Exposure will continue to decline and mining is no longer a strategic focus. But it does continue to generate cash flow as we complete the transition. Hash rate will continue to decline gradually, while efficiency improves as old miners retire first. Turning now to WhiteFiber. Our ownership in WhiteFiber provides key exposure to AI infrastructure, where demand for compute continues to outpace supply. We view this as a long-term position aligned with structural growth in the market. Our focus is on supporting the platform asset scales. We have also been clear on our intentions with respect to our ownership. We do not intend to monetize our WhiteFiber position in 2026. We view it as a core long-term strategic asset and a key part of our exposure to AI infrastructure. This ownership stake is a key differentiator for Bit Digital. It is a high-quality liquid asset on our balance sheet that provides differentiated flexibility as we scale the business. Over time, this flexibility can support capital allocation across the platform while reducing reliance on dilutive sources of capital. As we look ahead, our priorities are evolving. The next phase of the SAC model is building durable cash flow. This is critical to supporting continued investments and compounding across the platform. We expect to expand our operating footprint through disciplined investments. Our focus is on acquiring or building assets that fit our framework and generate consistent returns. Across Ethereum and AI infrastructure, our approach is consistent, capital efficiency, discipline, long-term compounding. We have operated through multiple market cycles as a public company. Volatility is not new to us. Our focus remains on execution and long-term value creation. I'll now hand the line to Erke to discuss our financials. Erke Huang: Thank you, Sam. I'll walk through our fourth quarter and full year 2025 results. Our 2025 results include WhiteFiber, which we continue to consolidate following its IPO. A portion of the results is attributable to noncontrolling interests. First quarter revenue was $32.3 million, up from $25.8 million in the same period last year. Full year revenue was $113.6 million, a 5% increase compared to 2024. Results reflect growth in cloud, colocation and staking alongside the wind down of Bitcoin mining. Fourth quarter results were also impacted by digital asset revaluation, similar to the full year. I will now break down revenue by segment. Revenue from digital asset mining was $27.3 million for the year, down 53% compared to 2024, reflecting the continued wind down of the business. Cloud services revenue was $68.8 million, up 50% year-over-year. Colocation services revenue was $8.9 million up from $1.4 million in the prior year. Ethereum staking revenue was $7 million, up from $1.8 million in 2024. As of year-end, the majority of our ETH holdings were actively stacked, supporting ongoing yield generation. Overall, our revenue mix continues to shift away from mining and towards staking and infrastructure-related revenue. Now turning to profitability. Gross profit for the fourth quarter was approximately $18 million, representing a gross margin of approximately 56% compared to approximately 40% in the same period last year. Net loss attributable to Bit Digital shareholders was $84.9 million for 2025, compared to a net income of $28.3 million in 2024. This change was largely driven by a less favorable year-over-year impact from digital asset revaluation. Adjusted EBITDA for the year was negative $24.9 million compared to a positive $73 million in 2024. A change reflects the same dynamic, where were noncash digital asset revaluation offset improvements in our operating businesses. Now turning to balance sheet. We ended the year with $118.4 million in cash and cash equivalents compared to $95.2 million at the end of 2024. This balance primarily reflects cash held at WhiteFiber, which is consolidated in our financial statements. Total digital assets were $415.7 million at year-end up from $161.4 million in the prior year. This reflects ETH accumulation partially offset by lower year-end ETH prices. During the year, we issued $150 million of convertible notes, which are reflected on our year-end balance sheet. Proceeds were used to increase our ETH holdings. Overall, 2025 reflects a transition in our business and financial profile. We reduced the exposure to Bitcoin mining, scaled newer revenue streams and repositioned the balance sheet around Ethereum and our ownership in WhiteFiber. Looking ahead, we expect our results to increasingly reflect recurring revenue and cash flow with less attribution contribution from legacy mining and reduced exposure to volatility over time. With that, I'll turn it back to Sam for closing remarks. Samir Tabar: Thank you, Erke. I'd like to close with a few thoughts on where we're heading. We've made significant progress repositioning Bit Digital as a strategic asset company. Today, we are a business built around 2 core pillars, an Ethereum treasury and staking platform and a majority ownership stake in WhiteFiber, which gives us exposure to AI infrastructure. We believe that combination is differentiated. We believe it is difficult to replicate at scale. And we do not think it is fully reflective on how the company is valued today. We are not standing still. We are not trying to be a vehicle that simply raises capital to buy ETH. We do not believe that creates long-term value. Our objective is to build a business that can generate cash, deploy that capital efficiency and compound value over time. That is the next phase of the SAC model. We believe adding a durable cash flow engine is critical to that evolution. It allows us to grow our ETH position in a more sustainable way and reduces reliance on external capital. M&A is part of that strategy. We are actively evaluating opportunities to acquire or build operating businesses that align with our framework and can generate consistent returns. We're focused on assets we understand. We will prioritize long-term value creation over speed. Importantly, we also have flexibility that many others do not. Our ownership in WhiteFiber is a high-quality liquid asset that provides flexibility as we scale the business. It supports growth without relying on dilutive capital and gives us exposure to AI infrastructure alongside our Ethereum strategy. At the same time, we remain fully aligned with WhiteFiber's long-term success. As we've said, we do not intend to monetize that position in 2026. The goal is simple, build a business that generates cash, deploy that capital into high conviction assets like Ethereum and continue compounding value per share over time. We have evolved the business significantly over the past year, and we expect that evolution to continue. We have operated through multiple market cycles, and our focus remains always on discipline, execution and long-term value creation. With that, operator, we can open the line for questions. Operator: [Operator Instructions] The first question comes from Nick Giles with B. Riley Securities. Nick Giles: Appreciate the update. Sam, I'm intrigued to hear that M&A may be of increased focus. Can you give us a sense for what that could entail? Would potential targets be other [ DAT Cos ] that may have a lower [ MNAV ] than yours? And kind of what would be the rough framework we should be thinking about? Samir Tabar: No. It would not be other [ DATs ] it would be a business that has -- that is generating cash or is on its way to generating cash so we can deploy that capital and invest it into Ethereum. We think that's the better way. In some ways, we have that already, but we're sunsetting a business, which is Bitcoin mining. So that is generating cash. That's another differentiator that other [ DATs ] don't have. But that is not a business of the future of Bitcoin mining. And we've known that for a long time. In fact, we're the first ones or one of the first ones to announce that publicly. So we are looking -- we are actively in the market right now, quite active looking at M&A opportunities. They could be crypto-adjacent businesses aligned with Ethereum, aligned even potentially with agentic AI that has an intersection with Ethereum. There is an intersection between agentic AI and Ethereum. And so if we can find a business that has a very clear path towards cash flow related to those work streams, those 2 sectors, we are very, very much interested. And so we've been actively in the market. We've already spoken to many candidates actually. You've got to kiss a lot of toads before you find that prince or princess. And so in our case, it's a matter of time when we find it, we have been very successful in M&A in the past. And therefore, that being for WhiteFiber when we acquired Enovum, but that's for WhiteFiber today is about Bit Digital. And we intend to make a successful acquisition as we've done for WhiteFiber, but this time for Bit Digital. Nick Giles: And that's super helpful. That's exactly what I was looking for. My second question was just can you speak to some of the trends you're seeing across the Ethereum network? I think in the past, you've spoken about stablecoins being built on top and a number of developers that are using the Ethereum network. Just anything you're seeing out there that's kind of away from the price pressures that we see on our screen. Samir Tabar: Yes. I mean with respect to the price pressures, it's difficult to avoid talking about that. I think there's been a lot of macro movements. I think 2 things happened with respect to price pressure. I know you're not asking about that, but I do want to make a comment about it. I think there was a rotation into gold. We're now seeing that rotation out of gold and coming back into crypto. I also think that there is obviously macro pressures, such as the war that's happening, that's caused a darker mood, but that is coming to an end. So I think those price pressures were not helpful, the movement towards gold and the war, but we're surfacing out of those 2 trends, so now coming back into crypto. So I'm glad to see that happen. But with respect to Ethereum, the blockchain itself, I think it was Jamie Dimon that said the era of experimentation is now over. Let's start using these technologies. And I fully agree with that comment. The era of sandboxing this technology, the era of experimenting is over. And it's just -- the old world is now just changing, especially with AI people are seeing that you just can't hold things together in the old way. And so all these intermediaries and all these -- it can be all streamlined through blockchain and agentic AI. And I think we're really living in an era where that old world is breaking down quite rapidly now, the 2 battering rams being blockchain and then AI. And so it's bound to happen. It's not if, it's when. And I agree with the sentiment that the era of experimentation is over, let's get out of the sandbox. The regulations are becoming more clear, and we should be seeing more of a golden age. In Ethereum and I think it's going to be Ethereum in particular because it doesn't have any downtime. And I don't think institutions can deal with a protocol that has uptime issues. Operator: Our next question will come from George Sutton with Craig-Hallum. George Sutton: Sam, so could you just walk a little in more detail around your recipe that you mentioned and the things that you are contemplating relative to building that ETH per share? Samir Tabar: Yes. I mean we have a pretty unique recipe. A lot of people classify as DAT. That's a sub-strategy that we have. We're very different. If you look at our peers, we have, believe it or not, a profitable Bitcoin mining business that, of course, we are sunsetting. We have 70% majority stake in WhiteFiber, and WhiteFiber isn't the topic of the conversation today. But I mean, just -- there's obviously a lot of -- I can't comment the price of particular stocks, but I can comment certain facts that, for example, WhiteFiber has an $865 million contract. And has a hyperscaler that is attached to the end of that contract with respect to North Carolina site. Again, this is about Bit Digital. But my point is there aren't many companies that are positioned to have an infrastructure investment in the digital space, that being Ethereum, that we have an investment of a real business with incredible contracts attached to it with respect to WhiteFiber. We have, oh, by the way, an ongoing business with Bitcoin mining that we are sunsetting but their revenues, it's still profitable. And now we are in the market very actively in M&A, and what we want to do with that business is take the cash flow from that business and create a flywheel that we take the money from that business and it has to be a high-growth business and pour that into Ethereum. And by the way, we also have a non-dilutive source of capital through WhiteFiber in the future. So if you take -- if you have a source of capital, all these levers that other DATs don't have, the WhiteFiber lever, the business that we intend to acquire in the future with its cash flow, these are real businesses, and we take that and we pour that into buying Ethereum. We think that is the way forward instead of just being a shell company that you just subbed a bunch of Ethereum on, and you're just basically doing that, which we don't think is really the best way forward. And I think it's also highly dilutive. You need different levers, that's the recipe. George Sutton: I understand. Just on the agentic AI that you mentioned this morning relative to Ethereum, I believe the last number was something like 11,000 agents operating through 402 protocols. Can you just give us a picture of how well positioned ETH is versus other blockchains relative to the agentic AI token side? Samir Tabar: Can you rephrase that question? Are you asking basically what's the intersection between agentic AI? And well, it has a lot to do with identification, but I'm not sure that's your question. Are you asking about the activity? George Sutton: Well, you mentioned for the first time today that you're contemplating in agentic AI-related acquisition... Samir Tabar: It's definitely one of the -- just to be clear, it's a possibility. It's something we're looking into. We've always called out the trends before they happen in the mainstream, and we were the first DAT basically. We got out of Bitcoin mining were. We're the first ones. We did the AI infrastructure company. We believe that agentic AI is a huge future, and what we're interested in are businesses, blockchain businesses that have an intersection with the agentic AI. We think the agentic AI economy is going to blow up in a major way, and we want to participate in the agentic economy. That's our thesis. George Sutton: Understand. Just one other quick question with respect to the CLARITY Act. I'm just curious your thoughts on that, your thoughts on likelihood of that getting through? And as it's currently constructed, how do you think it would influence the ETH assets that you own? Samir Tabar: This is almost more of a political question. I'm happy to go there. So I think that there are going to be -- I think the November elections are very much in play and whoever controls Congress is going to have obviously some influence on whether certain legislation gets passed. I think the Democrats have a choice to make. If they're going to try to weaponize technology like they did in the last election, that's going to be very problematic. I hope that they've learned their lesson, and I hope that they do not go the way of Elizabeth Warren, and they're more enlightened in their posture towards new technologies like blockchain. And if they do that, if the Democrats have learned their lesson from the last election cycle, then I do believe that the CLARITY Act will have a chance to pass. It all depends on political parties not weaponizing and politicizing technologies. Operator: And the next question will come from Kevin Dede with HC Wainwright. Kevin Dede: Would you mind digging in a little bit on the Ethereum yield strategy you're considering? I know at one point, you had wrapped ETH or liquid ETH. I'm wondering if you're considering lending or borrowing on Aave. What sort of DeFi applications or initiatives might you consider building your Ethereum returns? Samir Tabar: I'd love to pass that question over to our CFO, Erke. Erke Huang: Kevin, so far, majority of our ETH has stayed native. And in the past, we had explored restaking, liquid staking and all those strategies. But to make a very simple majority as native. And we are exploring some strategies around enhancing the return. But so far, we think native staking provides the most, I would say, research risk justified returns, until we see other opportunities we might pursue, that's the strategy right now. Kevin Dede: The press release, Erke, the press release talked to 89% and of your balanced staked. Are you running all of that staking on your own validator nodes? And what would it take for you to go to a full 100% staking? Erke Huang: Yes. We worked with Figment for native staking. That's through the partnerships and they run their nodes for us. And with respect to the 10%, that's with our third-party fund managers. We deploy with them. That's generating about 3% to 4%, so which is higher than 3% negative staking awards, working with a number of external fund managers to get the enhanced yield. Our target is to increase, let's say, from 10% to 20%, but really, it depends on what the strategies are and what the size of the strategy that would allow us to generate such returns from the market, especially from the risks associated with deploying those strategies. So we're super careful about working and selective working with different counterparties. Kevin Dede: Thanks, Erke. You nipped my last question in the bud on counterparty risk. So I'll flip over to Sam. A lot of discussion on M&A activity. Can you offer a time line? Is this something you hope to close before the end of the year? I know you want to keep it -- you want to keep yourselves open and want to hold yourself to any obligation, but can you just kind of give us something to look forward to. We appreciate it. Samir Tabar: Sure. Last time I spoke about time line. I got into some hot water. So I want to make sure I don't discuss time lines too aggressively, and I don't want to be optimistic. I prefer to be much more conservative when it comes to time lines. But I could tell you what is happening. We've been on calls with M&A candidates for the past couple of months since early this year. In fact, we started that process. Yes, I think early January. And it's a long process because frankly, there's a lot of trash out there. So we want to make sure that we are -- we buy a business we really love and is aligned with our philosophy in the future. And we don't want to buy some sort of impaired business or some business where is just -- it's just not for us. So in terms of when that will happen, I can't give you a time line, although I do hope for it to happen, I believe that don't hold me to it, that will happen this year. But I want to make sure -- I want to make it clear that it's more important that we do the right acquisition, and we don't rush anything and buy the wrong business, because that will end in tears for everybody. So we have to be really careful on who we acquire. And we have a very -- we have a fantastic track record in M&A, and we intend to use that talent in spotting the right acquisition candidate to provide at least some value for BTBT. Kevin Dede: Yes. So Sam, on that topic of being careful and the due diligence process, do you think you need to supplement your headcount in analyzing where you think agentic AI software development is and how legitimate the targets you're looking at are? Samir Tabar: Yes. I mean, again, it could be agentic AI. It could be more of an ease adjacent play. We're still looking at the various candidates. But I think your question is -- just to be clear, if we were to acquire that company, they will have headcount. So that headcount will automatically increase when we acquire X... Kevin Dede: No, no, I understand that -- I understand that, Sam. I was just wondering if you think you need new people now to help you in the review process? Samir Tabar: Yes. I mean there's -- we are going through -- we are -- there is actually an active process going on in hiring headcount that is going to be looking at this, although we have a number of executives looking at this very closely, as well, all the candidates, all the M&A candidates that we have been speaking with. We're all -- there's a bunch of us on the call, and we are screening people out. There have been some interest in candidates, by the way, and those conversations continue. But to answer your question directly, Kevin, we are hiring another person to help with the due diligence process of all this. And of course, once we figure out our top 3 candidates, we'll have to go through a more even deeper dive process, and then we'll be hiring the bankers and lawyers and so on. Operator: And the next question will come from Mike Grondahl with Northland Securities. Mike Grondahl: Another question on the acquisitions you're looking at for BTBT. It sounds like you're looking to buy an acquisition that generates cash. Can you talk a little bit about the size of acquisition and how you would finance it? And then secondly, if we could get kind of an update on the financing for WYFI, that would be great. Samir Tabar: So the financing for WYFI, that was -- we did do the WhiteFiber earnings call the other day. And I believe that script and the audio recording of that is posted on our website. We'll have that sent to you. So it's a much longer conversation, although it's an exciting one on WhiteFiber with respect to financing. And going back to your first question, with respect to the sizing, it depends on the candidate. It depends on, of course, we do still have a balance sheet. And perhaps there are ways to finance it off the balance sheet. But I think we do have a healthy balance sheet still, and we'll be using that to acquire the candidate we will have in mind as part of our overall strategy for Bit Digital. And again, I want to remind everybody on this call that no one is doing these things, not -- I just see DATs just pressing the button, having 1 lever. And I don't think that's the way to go. Even strategy this week stops doing that. It's not -- it's kind of a dumb strategy to just buy the digital asset, and that's it. I mean what kind of headcount do you need for that strategy, not many people. So we're trying to put some intellectual heft and differentiate ourselves. And we've done that so far with our exposure to AI infrastructure. We've done that. We already have Bitcoin mining business that continues to throw cash. And we're buying ETH not at any price. And so now with respect to acquiring a business, that's throwing off cash or has a promising path towards throwing off lucrative cash, that's going to be an additional lever for us to buy Ethereum in a non-dilutive manner, which I think is the way forward. Operator: And sir, do you have any further questions? Mike Grondahl: No. Operator: Thank you. And at this time, there are no further questions. Samir Tabar: Thank you, everybody. Thank you very much for attending this call and listening to us. We really look forward to the future and how we'll continue to differentiate ourselves, and we're really excited by it. So we look forward to the next quarterly call. And thank you very much for today. Operator: Thank you. That does conclude today's conference. We do thank you for your participation. Have an excellent day. 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