Key Highlights

● Second-quarter Revenue was $32.1 million, up 15% from the first quarter, at 57.9% gross margin.

● Net loss attributable to shareholders was $107.2 million, with about $86 million non-cash or non-operating.

● Bit Digital held about 164,310 ETH and 27,043,750 WhiteFiber shares at the June 30 close.

Bit Digital (NASDAQ:BTBT) has been reshaping itself from a Bitcoin miner into a company built around Ethereum treasury holdings, staking technology and high-performance computing infrastructure through its stake in WhiteFiber. The technology mix now matters more to its story than Mining output, and the latest Quarterly Report offers a view of how each piece is performing. Management has also said it is not trying to hold the most ETH, signalling a more operational emphasis.

Latest Company Context

Second-quarter 2026 results, released August 13, showed revenue of $32.1 million, up 15% from the first quarter, and Gross Profit of $18.6 million, a 57.9% gross margin. The company reported a net loss attributable to shareholders of $107.2 million, or $0.31 per diluted share, with about $86 million tied to non-cash digital asset movements and non-operating items. Operating Cash Flow for the first half was $46.8 million, up 33% year on year. Cash stood at about $83.6 million at quarter end.

Management said the board is evaluating Options to address the gap between operating results and valuation. First-half revenue was $60.0 million, up 18% from a year earlier, and the company had not sold any ETH during the quarter, while it bought 8,568 ETH in May. Gross Margin and cash flow therefore tell a different story from the headline loss, although non-cash items can reverse in either direction.

Key Business and index Drivers

Cloud services revenue was $23.8 million, up 42% from the first quarter, while colocation contributed $4.7 million. The NC-1 Data Center has begun billing and is expected to contribute from the third quarter, and remaining performance obligations were about $1.0 billion. Bit Digital held 27,043,750 WhiteFiber shares, with an implied value of about $1.05 billion at the June 30 close, and said it does not plan to sell them in 2026. On Ethereum, it held about 164,310 ETH including ETH equivalents in a managed fund and liquid staking tokens, though staking revenue fell to $0.9 million from $2.3 million as ETH was moved into liquid staking as collateral.

Bitcoin mining revenue was $2.4 million, and the segment is being wound down. Bitcoin Mining remains small relative to the cloud business, which suggests Earnings drivers are shifting toward contracted infrastructure demand. The company reported that colocation and cloud capacity are being added as Demand for AI compute rises, though contract timing and customer concentration remain relevant considerations.

What Investors Should Watch

Investors may watch whether NC-1 delivers the expected third-quarter contribution and whether cloud revenue continues to grow. The company raised $50 million against part of its ETH treasury and extended WhiteFiber a delayed draw term Facility of up to $150 million, while convertible notes totalled $336.2 million, so Leverage and funding costs could matter. Because reported earnings swing with digital asset prices, operating metrics such as gross margin, cash flow and staking income may offer a clearer read than net income. The board's review of options to close the valuation gap, and the third-quarter report, are likely near-term reference points. Ethereum price movements remain a key external variable. Dilution risk from convertible instruments and the pace of WhiteFiber's own financing are further considerations. Monthly Ethereum treasury updates, where published, may provide additional interim data points.

Two Volatile Arenas: Digital Assets and AI Infrastructure

Bit Digital now straddles two volatile arenas: digital assets and AI infrastructure. Operating Revenue and cash flow have grown, but net results remain heavily influenced by non-cash marks and the company carries convertible debt. How the technology businesses scale relative to crypto exposure may define the narrative. Investors may also weigh the WhiteFiber stake's market value, which moves with that company's share price.