Bit Digital, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q2 2026 was $32.1 million, a 15% increase compared to $27.9 million in Q1 2026; revenue for the six months ended June 30, 2026, was $60.0 million, an 18% year-over-year increase.
• Gross profit for Q2 2026 was $18.6 million, representing a gross margin of 57.9%.
• Net loss attributable to Bit Digital shareholders for Q2 2026 was $(107.2) million, or $(0.31) per diluted share, compared to $(146.7) million, or $(0.45) per diluted share in Q1 2026; non-cash movements on digital assets and non-operating items accounted for approximately $86 million of the quarterly loss.
• Net cash provided by operating activities was $46.8 million for the six months ended June 30, 2026, a 33% increase compared to $35.1 million in the same period of 2025.
• Cash and cash equivalents totaled approximately $83.6 million as of June 30, 2026 ($27.5 million at Bit Digital and $56.1 million at WhiteFiber), up from $79.5 million as of March 31, 2026.
• Contract liabilities were $143.1 million as of June 30, 2026, compared to $79.6 million as of December 31, 2025.
• Convertible notes totaled $336.2 million as of June 30, 2026, compared to $334.2 million as of March 31, 2026.
• Remaining performance obligations were approximately $1.0 billion at quarter end, with $57.7 million expected to be recognized in the remainder of 2026, $136.7 million in 2027, and $105.1 million in 2028.

Guidance and Future Outlook

• WhiteFiber's NC-1 data center campus is expected to begin contributing to results in the third quarter of 2026.
• WhiteFiber expects full contracted run-rate billing across 40 megawatts of contracted IT load at NC-1 later in the month of the report.
• WhiteFiber's Cloud Services portfolio is expected to generate more than $200 million of annualized revenue once fully deployed.
• The Company does not intend to allocate meaningful growth or maintenance capital to the Bitcoin mining segment going forward.
• Capital allocation is expected to continue shifting toward Ethereum and infrastructure-related opportunities.
• The Company does not intend to sell WhiteFiber shares in 2026.
• The Board is evaluating options to address the market's valuation of Bit Digital primarily as a passive digital asset treasury.

Business Segments and Product Lines

• Cloud services revenue was $23.8 million in Q2 2026, a 42% increase from the prior quarter, with a gross margin of approximately 58%; revenue increased 29% year over year for the six months.
• Colocation services revenue was $4.7 million in Q2 2026, essentially unchanged from the prior quarter, with a gross margin of approximately 63%; revenue increased 182% year over year for the six months.
• ETH staking revenue was $0.9 million in Q2 2026, down from $2.3 million in the prior quarter; revenue increased 246% year over year for the six months.
• Digital asset mining revenue was $2.4 million in Q2 2026 (32.3 Bitcoin mined), down from 48.1 Bitcoin in the prior quarter; revenue declined 58% year over year for the six months, with a gross margin of approximately 26%.
• WhiteFiber signed new multi-year Cloud Services agreements representing more than $540 million of aggregate contract value over their initial terms.

Market and Competitive Landscape

• The Company operates as a Strategic Asset Company focused on Ethereum strategies and AI/HPC infrastructure through its majority ownership stake in WhiteFiber.
• The market continues to value Bit Digital primarily as a passive digital asset treasury, creating a disconnect with the Company's operating results and strategic asset approach.

Risks and Challenges

• Results were impacted by non-cash movements on digital assets and non-operating items, which accounted for approximately $86 million of the quarterly loss.
• The Company recorded a non-cash impairment of $46.0 million on LsETH during the quarter.
• The Company faces risks related to forward-looking statements, including assumptions, risks, and uncertainties regarding business operations, financial condition, and operating results.

Management Commentary and Tone

• CEO Sam Tabar stated the quarter was about capital allocation, highlighting the decision to borrow against the ETH treasury to fund WhiteFiber without selling Ethereum or diluting ownership.
• Management emphasized a strategy to build a productive balance sheet where assets earn while they appreciate and finance operating businesses.
• Management noted that while operating results improved, the Company's valuation did not, prompting a Board evaluation of options to address the disconnect.

Other Key Points

• The Company executed a treasury-backed financing for WhiteFiber's NC-1 data center campus, raising $50 million of liquidity against a portion of its ETH treasury and originating a delayed draw term facility with commitments of up to $150 million, guaranteed by the WhiteFiber parent.
• As of June 30, 2026, the Company held 27,043,750 WhiteFiber shares with an implied value of approximately $1.05 billion based on a closing price of $38.85 per share.
• The Company held approximately 164,310.5 ETH as of June 30, 2026, with a market value of approximately $257.8 million (based on $1,569 per ETH); 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, receiving 66,192 LsETH; 49,000 LsETH was pledged as collateral for a $105.6 million digital asset collateral receivable, and 17,192 LsETH was retained as a buffer.
• On May 11, 2026, the Company purchased 8,568 ETH for $20 million at an average cost of approximately $2,334.25 per ETH; no ETH was sold during the quarter.
• Consolidated financial results for the second quarter include the performance of WhiteFiber Inc., with a portion attributable to non-controlling interests.