Bit Digital, Inc.

What they do

The company runs an Ethereum-native treasury and staking operation and is winding down its bitcoin mining business. Through its approximately 70.5% ownership of WhiteFiber, it provides GPU-based cloud services for AI training and inference, and owns or develops Tier-3 data centers offering hosting and colocation. WhiteFiber's facilities include MTL-1, MTL-2, MTL-3 in Quebec and NC-1 in North Carolina, with third-party data centers also hosting GPU clusters.

Revenue drivers

• Cloud services (HPC GPU) — GPU cloud capacity sold under service agreements and MSAs to AI and ML developers; second quarter 2026 revenue was $23.8 million, a 42% sequential increase, at roughly 58% gross margin.
• Colocation / data center services — Tier-3 hosting and colocation revenue; second quarter 2026 was $4.7 million at roughly 63% gross margin, with the NC-1 campus not yet contributing.
• ETH staking — Revenue from Ethereum staking and network participation; second quarter 2026 was $0.9 million, down from $2.3 million in the prior quarter.
• Digital asset mining — Bitcoin mining that is being wound down; second quarter 2026 revenue was $2.4 million on 32.3 bitcoin mined, at roughly 26% gross margin.

Recent performance

Second quarter 2026 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. Net loss attributable to Bit Digital shareholders was $(107.2) million, or $(0.31) per diluted share, with about $86 million of the loss from non-cash digital asset and non-operating items. Six-month operating cash flow was $46.8 million, up 33% year over year, and cash and equivalents were $83.6 million at June 30, 2026. Contract liabilities rose to $143.1 million from $79.6 million at December 31, 2025, and remaining performance obligations were approximately $1.0 billion.

Strategy

In June 2025, the company announced a transition to become a pure-play ETH staking and treasury company, converting BTC holdings to ETH and winding down bitcoin mining. It contributed its HPC business to WhiteFiber, which completed an IPO on August 8, 2025, and Bit Digital now holds 27,043,750 WhiteFiber shares. WhiteFiber is developing retrofit data centers in metro areas and targets approximately 70 MW gross capacity by the end of the fourth quarter of 2026, with a pipeline of roughly 1,500 MW under review. A treasury-backed financing funded development of the NC-1 campus without selling ETH or issuing equity at either company.

Risks

• History of operating losses — The company reported a net loss of $80.3 million in 2025 and a $107.2 million loss attributable to shareholders in the second quarter of 2026, and it may not sustain profitability.
• ETH price and treasury concentration — Results are sensitive to ETH prices and staking returns; the company held about 164,310.5 ETH at June 30, 2026, and non-cash digital asset movements drove roughly $86 million of the second-quarter loss.
• Stock-based exposure to WhiteFiber — A large share of value is tied to the 27,043,750 WhiteFiber shares, valued at approximately $1.05 billion based on the June 30, 2026 closing price of $38.85.
• Development and execution risk — WhiteFiber's data center targets depend on permits, construction, power availability and customer lease commitments, and the NC-1 facility had not yet contributed revenue as of the second quarter of 2026.

Outlook

Management expects NC-1 to begin contributing revenue in the third quarter of 2026. WhiteFiber targets approximately 70 MW of gross data center capacity by the end of the fourth quarter of 2026, with roughly 1,500 MW under review, and a major NC-1 services agreement is expected to generate approximately $865 million of contracted revenue over 10 years. Of the approximately $1.0 billion in remaining performance obligations at June 30, 2026, about $57.7 million is expected to be recognized during the balance of 2026, $136.7 million in 2027, and $105.1 million in 2028.