Bit Digital, Inc. Q2 2026 Earnings Recap

Shares rallied 7.5% as investors rewarded BitDigital’s strategic capital allocation and solid sequential revenue growth in cloud services, despite ongoing losses driven by digital asset price volatility and noncash impairments.

Key Takeaways

• Q2 revenue rose 15% sequentially to $32.1 million, led by a 42% increase in cloud services to $23.8 million, with cloud services gross margin steady at 58%.
• Colocation services revenue held flat sequentially at $4.7 million, with strong 63% gross margin; new North Carolina facility contributions expected next quarter.
• Ethereum staking revenue dropped quarter-over-quarter to $900,000, reflecting ETH price declines and staking of ETH as collateral in a $50 million related-party bridge loan supporting WhiteFiber expansion.
• Net loss was $107 million, heavily impacted by unrealized digital asset markdowns ($29 million), a $46 million noncash impairment related to financing, and $14 million in derivative liability losses.
• Operating cash flow improved to $46.8 million for the first half, up 33% year-over-year, demonstrating underlying business cash generation despite reported net losses.