Key Highlights

● Second-quarter revenue was $32.1 million, up 15% from the prior quarter.

● The net loss to shareholders was $107.2 million, with about $86 million non-operating.

● Bit Digital signed more than $540 million of new multi-year cloud agreements.

● The company holds 27,043,750 WhiteFiber shares and does not plan to sell them in 2026.

Bit Digital, Inc. (NASDAQ:BTBT) holds a large Ethereum treasury, a cloud and colocation business, and a significant stake in WhiteFiber (NASDAQ:WYFI), which focuses on high-performance computing. On its second-quarter call, management made an unusual statement: operating results improved through the quarter, but valuation did not. The board said it is evaluating options to address the gap.

Latest Company Context

Second-quarter 2026 revenue was $32.1 million, up 15% from the prior quarter, with a 57.9% gross margin. Cloud services contributed $23.8 million, colocation $4.7 million, ETH staking $0.9 million and mining $2.4 million, with the mining segment being wound down. The net loss to shareholders was $107.2 million, or $0.31 per diluted share, and the company attributed about $86 million of the loss to non-cash digital asset movements and other non-operating items.

Cash was about $83.6 million, of which $56.1 million sat at WhiteFiber. Convertible notes were $336.2 million. At June 30 the company held about 164,310 ETH, valued at roughly $1,569 each, and recorded a $46.0 million non-cash impairment on liquid staked ETH.

Key Business and Index Drivers

The company holds 27,043,750 WhiteFiber shares, an implied value of about $1.05 billion at $38.85, according to the release, and it said it does not plan to sell WhiteFiber shares in 2026. Management said it signed more than $540 million of new multi-year cloud agreements since the previous call and expects the cloud portfolio to exceed $200 million of annualized revenue once fully deployed. Remaining performance obligations were about $1.0 billion.

Colocation at the NC-1 site, with 40 MW of contracted IT load, began initial billing, with full run-rate billing expected later in August and revenue contribution from the third quarter. These are company expectations. Because WhiteFiber and ETH prices fluctuate, the reported values and losses may move materially between reporting dates. No index membership has been confirmed.

What Investors Should Watch

The third-quarter report, whose date is unconfirmed, should show the first contribution from NC-1 and test whether cloud revenue is converting backlog into sales. Investors may also watch for permanent financing for NC-1, any use of the up-to-$150 million delayed-draw facility for WhiteFiber, and updates on the board's review of the valuation gap, which could involve a range of corporate actions that have not been specified.

Other points include movements in ETH and WhiteFiber share prices, which drive non-cash gains and losses, the pace of the mining wind-down, and liquidity management given convertible notes and ETH-backed financing. Collateral requirements on pledged liquid staked ETH may also matter in volatile markets.

It is also worth noting how different the reported accounting results are from the operating picture. Six-month operating cash flow was $46.8 million, up 33%, even though the quarterly net loss was large, which illustrates that mark-to-market digital asset effects and impairments can dominate headline earnings.

Operations Versus Valuation on a Crypto-Linked Balance Sheet

Bit Digital is shifting toward infrastructure, with a large cloud backlog and colocation capacity coming online, while its reported results remain heavily influenced by digital asset prices. Management has acknowledged the gap between operations and valuation, but the outcome of its review is unknown. Scenarios could range from improved clarity as revenue scales to continued volatility tied to crypto and AI infrastructure sentiment.