Bit Digital, Inc. (BTBT) released its second-quarter financial results on Monday, revealing a mixed bag of performance. While the company saw a substantial revenue increase, driven by its expanding high-performance computing (HPC) business, it also reported wider losses than analysts had predicted.
Key Highlights from the Report:
*
Revenue:
Bit Digital’s revenue for the quarter reached $29 million, surpassing analyst expectations of $26.09 million. This represented a significant 220.87% increase compared to the same period last year. The company attributed this growth to the launch of its HPC services business and a higher Bitcoin (BTC) price.*
Bitcoin Mining:
Revenue generated from Bitcoin mining reached $16.1 million, marking an 80% increase year-over-year. However, the company mined 244.2 Bitcoins, a 23% decrease from the previous year. This decline was attributed to the halving event in April 2024, which reduced block rewards, and an increase in network difficulty.*
Ethereum:
Bit Digital earned 109.4 Ethereum (ETH) from native staking during the quarter.*
Treasury Holdings:
As of June 30, 2024, the company held 585.6 Bitcoins and 27,226.21 Ethereum, with a fair market value of approximately $36.7 million and $93.5 million, respectively.*
Losses:
Bit Digital reported a quarterly loss of nine cents per share, falling short of the analyst consensus estimate of a loss of three cents per share.HPC Business Growth:
Bit Digital announced a new partnership with Boosteroid Inc., a customer for its HPC business. Boosteroid has committed to an initial purchase of GPU servers with a five-year service duration, expected to generate approximately $13 million in revenue for Bit Digital. The company stated that the potential revenue opportunity from a full deployment of 50,000 GPUs could exceed $700 million over the five-year term, depending on the deployment plan and market conditions.
Stock Performance:
Bit Digital shares rose by 0.66% in after-hours trading, closing at $3.01 on Monday.
Looking Ahead:
The company will host a conference call on Tuesday at 10 a.m. ET to discuss its second-quarter results in more detail. The call is expected to shed further light on the company’s strategic direction and future prospects, particularly concerning its HPC business and its ability to navigate the current market volatility.
