Bit Digital’s Nasdaq-listed shares climbed following the company’s second-quarter earnings report, which disclosed a substantial net loss but showed signs of operational progress. The stock gained 2.05% to close at $1.49 on Thursday, followed by an additional 1.34% increase in after-hours trading to $1.51. This performance contrasted sharply with the broader crypto sector’s reaction to earnings announcements during the week, as competing companies such as Bitdeer and Forward Industries experienced declines after their own quarterly disclosures.
The company recorded $107.2 million in net loss for the quarter while generating $32.1 million in revenue, representing a 15% sequential increase from the first quarter. Approximately $86 million of the loss stemmed from non-cash items and non-operating adjustments, including a $46 million impairment charge on liquid staked Ethereum that the company characterized as unrealized. On a per-share basis, the loss narrowed to $0.31 from $0.45 in the preceding quarter, indicating improved financial performance on that metric.
Operational segments demonstrated notable growth during the period. Cloud services revenue climbed 42% to $23.8 million with gross margins approaching 58%, while group gross profit reached $18.6 million. The company held 164,310.5 Ethereum as of quarter-end and deployed $20 million to acquire 8,568 ETH during May. Bit Digital committed up to $150 million through a delayed draw facility to fund the NC-1 data center campus operated by WhiteFiber, a portfolio company in which it holds 27 million shares.
Chief Executive Sam Tabar indicated that market perception had not adjusted to reflect the company’s strategic evolution from a passive digital asset holder to an operator with expanding infrastructure and cloud capabilities. WhiteFiber secured multi-year cloud agreements worth more than $540 million in aggregate contract value since the previous earnings announcement, with management projecting over $200 million in annualized revenue once operations reach full deployment capacity. The company raised $50 million against a portion of its Ethereum treasury during the quarter.
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