Bit Digital, Inc.

Second quarter revenue was $32.1 million, up 15% from $27.9 million in Q1; for the first six months, revenue was $60 million, up 18% year over year. Gross profit was $18.6 million, with gross margin of 57.9%. Net loss attributable to BitDigital shareholders was $107 million, or $0.31 per share; management said about $86 million of that loss came from digital asset items, derivative revaluation, and interest expense. Operating cash flow for the first six months was $46.8 million, up 33% from $35.1 million a year ago. Cloud services revenue was $23.8 million, up 42% sequentially; colocation services revenue was $4.7 million; Ethereum staking revenue was $900 thousand; and digital assets mining revenue was $2.4 million on 32.3 Bitcoin mined. The company recorded $28.8 million of loss on digital assets at fair value, a $46 million noncash impairment on liquid-staking-related fees, a $14 million derivative fair value loss, and $8.1 million of interest expense. Cash and cash equivalents were approximately $83.6 million, including $27.5 million at BitDigital and $56.1 million at WhiteFiber. Contract liabilities rose to $143.1 million from $79.6 million at year-end, and remaining performance obligations were approximately $1 billion. Management expects to recognize approximately $57.7 million across the balance of 2026, $136.7 million in 2027, and $105.1 million in 2028, with the remainder thereafter.

Samir Tabar framed the quarter as a capital-allocation story rather than a pure operating update. He said BitDigital is trying to maximize long-term value from its balance sheet by using Ethereum productively and pairing it with WhiteFiber, calling the company a ‘strategic asset company’ rather than a passive treasury. He also said the company may consider buying back stock because the shares trade at a persistent discount to NAV, though any action would depend on board approval and timing remains undecided.

Erke Huang said the company consolidated WhiteFiber in full, which helped drive revenue and cash flow, while non-operating marks and expenses weighed on bottom-line results. He highlighted the $32.1 million of revenue, $18.6 million of gross profit, 57.9% gross margin, and $46.8 million of six-month operating cash flow. He also detailed the non-cash items: $28.8 million digital-asset fair-value loss, $46 million impairment tied to the WhiteFiber financing structure, $14 million derivative liability loss, and $8.1 million of interest expense. On liquidity, he cited $83.6 million of cash and equivalents and noted the bridge facility is short term, with repayment expected once NC1 permanent financing is completed.

Analysts focused heavily on the possible buyback, asking when it could happen and whether WhiteFiber proceeds would fund it. Management said the board is actively discussing the idea, but timing is unknown, and WhiteFiber shares will not be sold this year to fund a repurchase. Questions also centered on the share count increase and ATM use; Samir said the issuance was separate from the ETH purchase and was used for construction spending, while he argued the market discount had widened enough to change capital priorities. Another topic was Ethereum protocol changes such as EIP and Pectra, but Samir said he was not focused on the engineering details and could not give a strong answer.