Bit Digital Q2 Earnings Miss Despite Revenue Beat on Cloud Growth

BTBT's Cloud Revenues Accelerate

Cloud services revenues increased 43.5% year over year to $23.8 million and rose 42% sequentially. The company attributed the year-over-year increase primarily to more deployed GPU servers serving new and existing customers. The segment generated an approximately 58% gross margin.

The termination of an agreement with an initial customer reduced monthly GPU service revenue, but a $12.3 million termination fee substantially offset that impact.

WhiteFiber, Inc. WYFI also continued adding business. New multi-year cloud agreements signed since its previous earnings call carry more than $540 million in combined contract value. The signed contracts indicate the portfolio will likely generate over $200 million of annualized revenues after full deployment.

Bit Digital's Colocation Broadens Revenue Mix

Colocation services contributed $4.7 million in second-quarter revenues and maintained an approximately 63% gross margin. Revenues were nearly unchanged from the first quarter, while the first-half total increased 182% from the prior-year period. The NC-1 campus did not contribute to second-quarter results and is expected to begin adding revenues in the third quarter.

Mining continued to shrink as Bit Digital redirects capital elsewhere. The business generated $2.4 million in revenues from 32.3 bitcoin mined, down from 48.1 bitcoin in the preceding quarter.

BTBT's ETH Strategy Reshapes Revenues

ETH staking revenues totaled $0.9 million, up 147.4% year over year but below $2.3 million in the first quarter. Native staking produced 440.1 ETH during the quarter compared with 166.8 ETH a year earlier, helping offset the impact of a lower average ETH price.

The sequential revenue decline reflected a change in how the company deployed part of its ETH holdings. Bit Digital shifted ETH into liquid staking to provide collateral for financing tied to WhiteFiber. At June-end, the company held approximately 164,310.5 ETH, including ETH-equivalent positions associated with liquid staking and an externally managed fund.

Bit Digital Faces Heavy Cost Pressure

Second-quarter gross profit was $18.6 million, translating into a gross margin of 57.9%. Profitability below the gross-profit line was pressured by several sizable charges, including a $46 million impairment related to LsETH and $28.8 million of losses on digital assets.

The quarter also included a $5 million impairment of capitalized software assets. Interest costs added another layer of pressure as the company carried convertible notes, collateralized borrowing and other credit facilities. Total operating expenses reached $114.7 million in the second quarter.

BTBT's Liquidity Funds WhiteFiber Growth

Operating activities generated $46.8 million of cash during the first six months of 2026, up 33% from the comparable 2025 period. Cash and cash equivalents stood at approximately $83.6 million at June 30, with $27.5 million held by Bit Digital and $56.1 million at WhiteFiber.

Bit Digital also raised $50 million against part of its ETH treasury and used its balance sheet to provide WhiteFiber with a delayed-draw term facility carrying commitments of up to $150 million. The structure supplied capital for growth projects, including NC-1, without requiring an ETH sale or new equity issuance by either company. Contract liabilities rose to $143.1 million from $79.6 million at the end of 2025. The company doesn’t plan to sell WhiteFiber shares in 2026.

BTBT currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Peers Perform?

Peers including MARA Holdings, Inc. MARA 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%.

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