TL;DR
- Profit Amid Decline: Bit Digital’s Q2 revenue fell 11.7% to $25.7 million, yet it posted $14.9 million in net income after a prior-year loss, with adjusted EBITDA of $27.8 million supported by a $27.2 million gain on digital assets.
- Ethereum Strategy Shift: The company is pivoting to an Ethereum treasury and staking model, growing holdings from 30,663 ETH to 121,076 by Aug. 11, earning 166.8 ETH in Q2 rewards, and lifting actively staked ETH to 105,015.
- Segment and IPO Moves: Segment shifts defined Q2 as cloud services rose to $16.6 million, colocation added $1.7 million, and mining dropped to $6.6 million; Bit Digital also completed WhiteFiber’s IPO, retaining a 74.3% stake valued at $468.4 million.
Bit Digital posted second-quarter revenue of $25.7 million, down 11.7% year over year, yet delivered net income of $14.9 million as it pivoted from Bitcoin mining toward an Ethereum treasury and staking strategy. The turnaround from a $12 million loss a year earlier reflects segment mix shifts and gains on digital assets during the period, alongside disciplined cost and capital allocation.
Financial results
Revenue from digital asset mining dropped to $6.6 million, a decrease of 58.8% from $16.1 million, due to increased network difficulty, the halving in April 2024, and a reduced active hash rate. Cloud services increased by 32.8% to $16.6 million, and the newly introduced colocation added $1.7 million. Staking revenue was $0.4 million, which is a slight decline compared to the previous year. Adjusted EBITDA was $27.8 million, supported by a $27.2 million gain in digital assets.
Ethereum pivot
Bit Digital initiated a strategic transition to a pure play Ethereum treasury and staking model, allocating the majority of capital to accumulating ETH and producing on-chain yield. Holdings rose from 30,663 ETH on June 30 to 100,603 ETH by July 7, then 121,076 ETH as of Aug. 11, valued at about $511.5 million. The company focuses on one of the biggest public on-chain ETH balance sheets. In the second quarter, it generated 166.8 ETH from staking rewards and had 21,568 ETH actively staked at a 3.1% annualized effective yield, which increased to 105,015 ETH staked by August 11.
Mining wind down
The company is ending its Bitcoin mining operations and reallocating funds to ETH. It mined 68.2 BTC in the quarter, down from 83.3 BTC in Q1, amid higher difficulty, curtailments, and fleet redeployments following a hosting exit. As of June 30, the current hash rate was approximately 1.2 EH/s, showing an efficiency of around 25 J/Th, with more S21 units being added.
WhiteFiber and market context
Bit Digital finished the IPO of its high-performance computing subsidiary, WhiteFiber, in August and kept 27,043,749 shares, which is about 74.3%, worth $468.4 million at a share price of $17.32 on August 13. The company plans to keep consolidating WhiteFiber, with public ownership noted as a controlling interest according to U.S. GAAP, unless there are changes in control thresholds.
