Bit Digital, Inc (BTBT): Results of Operations and Financial Condition
Bit Digital, Inc (BTBT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Bit Digital, Inc. Announces Second Quarter 2026 Financial Results NEW YORK, August 13, 2026 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (the “Company”), a publicly listed Strategic Asset Company focused on Ethereum (“ETH”) strategies and AI/HPC infrastructure, to
How this was made
The 30-second read
Why it matters
Traders can update expectations for (1) revenue mix (cloud vs colocation vs staking vs mining), (2) cash generation trajectory, and (3) balance-sheet risk tied to ETH treasury and LsETH impairment, plus the incremental contribution timing from WhiteFiber’s NC-1 data center campus.
Market read
This 8-K provides quantified Q2 financials and a fresh financing structure that preserves ETH exposure while funding WhiteFiber’s growth, with NC-1 contribution expected to start in Q3.
What to watch
Contract liabilities rose sharply to $143.1M and remaining performance obligations are ~$1.0B, but the article notes NC-1 is not reflected in Q2 and begins contributing in Q3, so timing of revenue recognition is a key swing factor.
Bit Digital reported $32.1 million of second-quarter revenue, led by cloud-services growth, while a $(107.2) million net loss reflected non-cash digital-asset and non-operating items.
Revenue, cloud services, gross profit and six-month operating cash flow increased, but ETH staking declined sequentially and the Company reported a $(107.2) million net loss attributable to Bit Digital shareholders.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $32.1 million | 15% increase | – |
| Total revenue for the six months ended June 30, 2026GAAP | $60.0 million | – | 18% increase year over year |
| Gross profitGAAP | $18.6 million | – | – |
| Gross marginGAAP | 57.9% | – | – |
| Cloud services gross marginGAAP | approximately 58% | – | – |
| Colocation services gross marginGAAP | approximately 63% | – | – |
| Digital asset mining gross marginGAAP | approximately 26% | – | – |
| Net loss attributable to Bit Digital shareholdersGAAP | $(107.2) million | – | – |
| Diluted loss per shareGAAP | $(0.31) per diluted share | – | – |
| Non-cash movements on digital assets and non-operating itemsother | approximately $86 million | – | – |
| Net cash provided by operating activities for the six months ended June 30, 2026GAAP | $46.8 million | – | 33% increase |
| Cash and cash equivalentsGAAP | approximately $83.6 million | – | – |
| Contract liabilitiesGAAP | $143.1 million | – | – |
| Remaining performance obligationsGAAP | approximately $1.0 billion | – | – |
| Convertible notesGAAP | $336.2 million | – | – |
| WhiteFiber shares heldother | 27,043,750 WhiteFiber shares | – | – |
| Implied value of WhiteFiber shares heldother | approximately $1.05 billion | – | – |
| Ethereum treasuryother | approximately 164,310.5 ETH | – | – |
| ETH held directlyother | 75,757.5 ETH | – | – |
| Fair value of directly held ETHother | $118.9 million | – | – |
| LsETH received through liquid stakingother | 66,192 LsETH | – | – |
| Digital asset collateral receivableGAAP | $105.6 million | – | – |
| LsETH within digital intangible assetsGAAP | $27.6 million | – | – |
| Non-cash impairment on LsETHGAAP | $46.0 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cloud servicesDriven by new contracts entering service and expansion of existing agreements. | $23.8 million | 42% increase | – |
| Colocation servicesNC-1 is not reflected in second quarter results and is expected to begin contributing in the third quarter. | $4.7 million | essentially unchanged from the prior quarter | 182% increase year over year for the six months |
| ETH stakingThe sequential decline reflected the repositioning of ETH into liquid staking to collateralize the WhiteFiber financing, together with lower average ETH prices during the quarter. | $0.9 million | – | 246% increase year over year for the six months |
| Digital asset miningThe business continued to wind down as the Company reduced exposure to bitcoin mining. | $2.4 million | – | 58% decline year over year for the six months |
Third quarter of 2026 and thereafter outlook
- NoteNC-1 is expected to begin contributing in the third quarter.
- NoteFull contracted run-rate billing across 40 megawatts of contracted IT load is expected later this month.
- NoteBased on contracts signed to date, WhiteFiber’s Cloud Services portfolio is expected to generate more than $200 million of annualized revenue once fully deployed.
- NoteApproximately $57.7 million of remaining performance obligations is expected to be recognized during the balance of 2026, $136.7 million in 2027, and $105.1 million in 2028, and the remainder thereafter.
- NoteThe Company does not intend to sell WhiteFiber shares in 2026.
- NoteThe Company does not expect to allocate meaningful growth or maintenance capital to bitcoin mining going forward.
What drove it
- Cloud-services revenue growth was driven by new contracts entering service and expansion of existing agreements.
- Initial billing has commenced at NC-1.
- WhiteFiber signed new multi-year Cloud Services agreements representing more than $540 million of aggregate contract value over their initial terms.
- The Company liquid staked 73,235 ETH to collateralize WhiteFiber financing while retaining ETH exposure.
- The Company continued shifting capital allocation toward Ethereum and infrastructure-related opportunities and away from bitcoin mining.
Concerns
- Net loss attributable to Bit Digital shareholders was $(107.2) million, with non-cash movements on digital assets and non-operating items accounting for approximately $86 million of the quarterly loss.
- ETH staking revenue declined to $0.9 million from $2.3 million in the prior quarter.
- The Company recorded a non-cash impairment of $46.0 million on LsETH during the quarter.
- Convertible notes were $336.2 million as of June 30, 2026.
- Digital asset mining revenue was $2.4 million, and management stated that mining is no longer a strategic growth priority.
What to watch
- The expected third-quarter contribution from NC-1 and the expected full contracted run-rate billing across 40 megawatts of contracted IT load later this month.
- Deployment of signed Cloud Services contracts and the timing of more than $200 million of expected annualized revenue once fully deployed.
- Recognition of approximately $57.7 million of remaining performance obligations during the balance of 2026.
- The impact of liquid staking, collateralized borrowing and ETH prices on ETH staking revenue and digital-asset accounting.
- WhiteFiber’s pursuit of permanent financing for NC-1.
Balance sheet and cash flow
- Cash and cash equivalents totaled approximately $83.6 million as of June 30, 2026, including approximately $27.5 million held at Bit Digital and approximately $56.1 million at WhiteFiber.
- Net cash provided by operating activities was $46.8 million for the six months ended June 30, 2026.
- Contract liabilities were $143.1 million as of June 30, 2026.
- Remaining performance obligations were approximately $1.0 billion at quarter end.
- Convertible notes were $336.2 million as of June 30, 2026.
- During the second quarter, the Company raised $50 million of liquidity against a portion of its ETH treasury and originated a delayed draw term facility for WhiteFiber with commitments of up to $150 million, guaranteed by the WhiteFiber parent.
- 49,000 LsETH was pledged as collateral in connection with the Company’s collateralized borrowing and is reflected as a digital asset collateral receivable of $105.6 million.
Analysis
Bit Digital’s second-quarter operating results showed growth in its infrastructure operations. Total revenue was $32.1 million, a 15% increase from $27.9 million in the first quarter, and gross profit was $18.6 million at a 57.9% gross margin. Cloud services was the principal growth engine, with $23.8 million of revenue, a 42% increase from the prior quarter, driven by new contracts entering service and expansion of existing agreements. Colocation services generated $4.7 million and was essentially unchanged sequentially, with NC-1 not yet reflected in the quarter.
The segment mix continued moving away from bitcoin mining. Digital asset mining generated $2.4 million of revenue on 32.3 bitcoin mined, compared to 48.1 bitcoin in the prior quarter, and management said it does not expect to allocate meaningful growth or maintenance capital to the business going forward. ETH staking revenue fell to $0.9 million from $2.3 million in the prior quarter because ETH was repositioned into liquid staking to collateralize WhiteFiber financing and because of lower average ETH prices during the quarter.
Reported profitability remained pressured by digital-asset and non-operating accounting effects. Net loss attributable to Bit Digital shareholders was $(107.2) million, or $(0.31) per diluted share, compared with $(146.7) million, or $(0.45) per diluted share, in the first quarter. The Company said non-cash movements on digital assets and non-operating items together accounted for approximately $86 million of the quarterly loss. It also recorded a non-cash impairment of $46.0 million on LsETH, which management said did not represent a realized loss.
Cash generation and contractual visibility improved. Net cash provided by operating activities was $46.8 million for the six months ended June 30, 2026, a 33% increase compared to $35.1 million in the same period of 2025. Contract liabilities reached $143.1 million and remaining performance obligations were approximately $1.0 billion. Cash and cash equivalents were approximately $83.6 million, while convertible notes were $336.2 million. The Company raised $50 million of liquidity against ETH and provided WhiteFiber a delayed draw term facility with commitments of up to $150 million to support NC-1 without selling ETH or issuing equity.
The near-term operating focus is NC-1. Initial billing has commenced, and the Company expects NC-1 to begin contributing in the third quarter, with full contracted run-rate billing across 40 megawatts of contracted IT load expected later this month. WhiteFiber also signed new multi-year Cloud Services agreements representing more than $540 million of aggregate contract value over their initial terms, and management expects its Cloud Services portfolio to generate more than $200 million of annualized revenue once fully deployed. The filing did not provide formal revenue, margin, expense, or tax-rate guidance.
Management, verbatim
This quarter was about capital allocation. WhiteFiber required interim capital to support its growth initiatives while pursuing permanent financing for NC-1. Bit Digital borrowed against a portion of its ETH treasury and became the lender, allowing us to support WhiteFiber’s growth without selling Ethereum or diluting our ownership.
Sam Tabar, CEO of Bit Digital
That decision reflects how we operate. We are not trying to hold the most ETH. We are trying to get the most out of the ETH we hold. Our strategy is to build a productive balance sheet — assets that earn while they appreciate, assets that finance operating businesses, and businesses that generate cash flow we can reinvest.
Sam Tabar, CEO of Bit Digital
Our operating results improved through the quarter. Our valuation did not. The market continues to value Bit Digital primarily as a passive digital asset treasury, and the Board is currently evaluating our options to address that disconnect.
Sam Tabar, CEO of Bit Digital
Not in the filing
stated, not guessed- Prior-year comparison for second-quarter total revenue
- Prior-year and prior-quarter comparisons for gross profit and consolidated gross margin
- Operating income or loss
- Operating margin
- Total net income or loss attributable to all shareholders
- Prior-year comparison and percentage change for net loss attributable to Bit Digital shareholders and diluted loss per share
- Non-GAAP gross profit, operating income or loss, net income or loss, and EPS
- Free cash flow
- Quarterly operating cash flow
- Capital expenditures
- Share repurchases, dividends, or other shareholder capital returns
- Total debt beyond the reported convertible notes
- Formal revenue, gross-margin, operating-expense, or tax-rate guidance
- Prior-quarter revenue comparison for ETH staking and digital asset mining
- Prior-year revenue comparisons for each second-quarter segment
- Prior guidance or previous outlook for comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Bit Digital is an ETH-strategy and AI/HPC infrastructure capital allocator, with majority ownership in WhiteFiber and treasury management that includes liquid staking and collateralized borrowing.
Ticker impact
Bit Digital reported Q2 2026 results, including $32.1M revenue, $(107.2)M net loss, and a $50M ETH-treasury-backed financing for WhiteFiber’s NC-1.
Near-term trading likely hinges on whether investors view the WhiteFiber financing as de-risking NC-1 cash needs without ETH dilution, offset by continued large non-cash losses and lower staking/mining revenue.
This is a primary 8-K earnings/financial-condition disclosure with multiple quantified datapoints (revenue mix, cash from ops, contract liabilities, ETH treasury and LsETH impairment, and the $50M liquidity raise). However, the article provides no explicit forward guidance beyond NC-1 starting to contribute in Q3, limiting precision on valuation impact.
Market effects
Reinforces the strategic asset model for ETH-focused miners and infrastructure operators, with capital increasingly raised against ETH rather than via equity.
No clear regional-specific impact beyond US-listed crypto-infrastructure equities.
ETH price and staking/liquid-staking mechanics remain key drivers for this business model, linking performance to broader crypto market conditions.
Counterpoint
The improved operating cash flow and financing structure may be less bullish than it appears because the quarter still shows a very large net loss driven by non-cash digital-asset movements and LsETH impairment.
Key entities
- public_companyBit Digital, Inc.
Nasdaq-listed strategic asset company focused on Ethereum strategies and AI/HPC infrastructure via WhiteFiber.
- public_companyWhiteFiber Inc.
Nasdaq-listed subsidiary whose NC-1 data center campus is funded via an ETH-treasury-backed delayed draw term facility.
- crypto_assetEthereum
Core treasury and staking exposure; liquid staking (LsETH) is used as collateral and is subject to non-cash impairment.
