Bit Digital, Inc. Announces Second Quarter 2026 Financial Results
Rhea-AI Summary
Bit Digital (Nasdaq: BTBT) reported second quarter 2026 revenue of $32.1 million, up 15% from $27.9 million in Q1, with gross profit of $18.6 million and a gross margin of 57.9%. Consolidated results include WhiteFiber (Nasdaq: WYFI), with a portion attributable to non-controlling interests.
Cloud services revenue reached $23.8 million, up 42% sequentially, while colocation revenue was $4.7 million, essentially flat quarter over quarter. ETH staking revenue fell to $0.9 million from $2.3 million, and digital asset mining revenue was $2.4 million on 32.3 bitcoin mined as that business continues to wind down.
Net loss attributable to Bit Digital shareholders was $(107.2) million, or $(0.31) per diluted share, versus $(146.7) million in Q1, with around $86 million from non-cash and non-operating items. For the first half of 2026, operating cash flow was $46.8 million, up 33% year over year, and cash and equivalents totaled $83.6 million. The company held about 164,310.5 ETH and 27,043,750 WhiteFiber shares, with remaining performance obligations of roughly $1.0 billion.
Positive
- Total Q2 2026 revenue $32.1 million, up 15% quarter over quarter
- Cloud services revenue $23.8 million, up 42% sequentially with ~58% margin
- First-half 2026 operating cash flow $46.8 million, up 33% year over year
- Contract liabilities $143.1 million and remaining performance obligations about $1.0 billion
- ETH holdings about 164,310.5 ETH; no ETH sold in Q2 2026
- WhiteFiber stake 27,043,750 shares, implied value about $1.05 billion
Negative
- Q2 2026 net loss attributable to shareholders $(107.2) million, or $(0.31) per diluted share
- Non-cash and non-operating items contributed about $86 million to quarterly loss
- Non-cash impairment on LsETH of $46.0 million during the quarter
- ETH staking revenue declined sequentially to $0.9 million from $2.3 million
- First-half 2026 digital asset mining revenue down 58% year over year
- Convertible notes balance $336.2 million as of June 30, 2026
News Explained
The structure avoids disclosed equity issuance and ETH sales, but pledges LsETH and does not establish a full $150 million draw.
Bit Digital disclosed that it raised
The stated
NC-1 has begun initial billing, but it was not reflected in second-quarter results; full contracted run-rate billing across 40 megawatts is expected later this month, with contribution to results expected in the third quarter.
The release leaves the amount ultimately drawn under the delayed-draw facility and the timing of full contracted NC-1 billing as the key unresolved line items.
Market Reaction – BTBT
Following this news, BTBT has gained 6.85%, reflecting a notable positive market reaction. Our momentum scanner has triggered 20 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $1.56. Trading volume is elevated at 2.8x the average, suggesting notable buying interest.
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Financial Highlights for the Second Quarter of 2026
The Company's second quarter results reflected revenue growth across its infrastructure businesses, improved operating cash flow, and the execution of a treasury-backed financing that funded development of WhiteFiber's NC-1 data center campus without selling ETH or issuing equity at either company.
Results for the second quarter of 2026 include the consolidated financial performance of WhiteFiber Inc. (Nasdaq: WYFI), with a portion of results attributable to non-controlling interests.
- Total revenue for the second quarter of 2026 was
$32.1 million 15% increase compared to$27.9 million $60.0 million 18% increase year over year. - Gross profit for the second quarter was
$18.6 million 57.9% . - Revenue from cloud services was
$23.8 million 42% increase from the prior quarter, at a gross margin of approximately58% , driven by new contracts entering service and expansion of existing agreements. For the six months, cloud services revenue increased29% year over year. - Revenue from colocation services was
$4.7 million 63% . For the six months, colocation revenue increased182% year over year. NC-1 is not reflected in second quarter results and is expected to begin contributing in the third quarter. - Revenue from ETH staking was
$0.9 million $2.3 million 246% year over year. The sequential decline reflected the repositioning of ETH into liquid staking to collateralize the WhiteFiber financing described below, together with lower average ETH prices during the quarter. - Revenue from digital asset mining was
$2.4 million 58% year over year, consistent with the continued wind-down of the business. The segment generated a gross margin of approximately26% for the second quarter. - Net loss attributable to Bit Digital shareholders for the second quarter was
$(107.2) million $(0.31) $(146.7) million $(0.45) $86 million - Net cash provided by operating activities was
$46.8 million 33% increase compared to$35.1 million - Cash and cash equivalents totaled approximately
$83.6 million $79.5 million $27.5 million $56.1 million - Contract liabilities were
$143.1 million $79.6 million $1.0 billion $57.7 million $136.7 million $105.1 million - Convertible notes were
$336.2 million $334.2 million - As of June 30, 2026, Bit Digital held 27,043,750 WhiteFiber shares, with an implied value of approximately
$1.05 billion $38.85
Ethereum Treasury Update
As of June 30, 2026, the Company held approximately 164,310.5 ETH,[1] with a market value based on a closing ETH price of approximately
- 75,757.5 ETH was held directly at a fair value of
$118.9 million - During the quarter, the Company liquid staked 73,235 ETH and received 66,192 LsETH in exchange. Of that balance, 49,000 LsETH was pledged as collateral in connection with the Company's collateralized borrowing and is reflected on the balance sheet as a digital asset collateral receivable of
$105.6 million $27.6 million - On May 11, 2026, the Company purchased 8,568 ETH for
$20 million $2,334.25
LsETH is accounted for separately from ETH under different guidance and is carried at cost less impairment rather than fair value. The reclassification changed where the position appears on the balance sheet without changing the Company's underlying economic exposure. The Company recorded a non-cash impairment of
Strategic Asset Company Strategy
Bit Digital operates as a Strategic Asset Company, allocating capital across two core areas: Ethereum as economic infrastructure, and AI infrastructure through its majority ownership stake in WhiteFiber.
During the second quarter, the Company raised
The Company does not intend to sell WhiteFiber shares in 2026 and continues to view the position as a long-term strategic asset.
Bitcoin Mining Update
Bit Digital continued reducing exposure to bitcoin mining during the quarter as part of its transition toward Ethereum and infrastructure-related operations. Mining remains gross margin positive but is no longer a strategic growth priority.
The Company does not expect to allocate meaningful growth or maintenance capital to this segment going forward. Capital allocation is expected to continue shifting toward Ethereum and infrastructure-related opportunities.
Management Commentary
"This quarter was about capital allocation," said Sam Tabar, CEO of Bit Digital. "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."
"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."
"WhiteFiber, our largest asset by market value, continued to reach important operating and commercial milestones. Initial billing has commenced at NC-1, with full contracted run-rate billing across 40 megawatts of contracted IT load expected later this month. Since its last earnings call, WhiteFiber has also signed new multi-year Cloud Services agreements representing more than
"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."
[1] Includes approximately 15,318 ETH and ETH-equivalents held in an externally managed fund, and approximately 73,235 ETH presented on an as-converted basis from LsETH using the Coinbase conversion rate as of June 30, 2026.
About Bit Digital
Bit Digital (NASDAQ: BTBT) is a Strategic Asset Company (SAC) focused on active participation in Ethereum infrastructure and controlling equity exposure to AI/HPC infrastructure through its majority ownership stake in WhiteFiber (NASDAQ: WYFI). The Company purchases and stakes ETH to generate protocol-native yield and participates directly in the Ethereum network. Bit Digital allocates capital with a focus on long-duration, foundational infrastructure, and disciplined balance sheet management. For additional information, please contact ir@bit-digital.com, visit our website at www.bit-digital.com or follow us on LinkedIn or X.
Investor Notice
Investing in our securities involves risks worth considering, before making an investment decision. All current and potential investors are advised to regularly review the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 (Annual Report) and any subsequently filed quarterly reports on Form 10-Q and any Current Reports on Form 8-K. If any material risks were to occur – including those not presently known to us or currently deemed immaterial – our business operations may be impaired, and our financial condition or operating results would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investment. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See "Safe Harbor Statement" below.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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SOURCE Bit Digital, Inc.