Key Highlights

● Second-quarter revenue was $32.1 million, up 15% from the first quarter.

● Cloud services revenue rose 42% sequentially to $23.8 million.

● The net loss was $107.2 million, with about $86 million non-cash.

● Convertible notes stood at $336.2 million.

Bit Digital, Inc. (NASDAQ:BTBT) has spent the past few years reshaping itself from a bitcoin miner into a hybrid of Ethereum treasury holder, cloud services provider and owner of a large stake in AI infrastructure company WhiteFiber. Its second-quarter 2026 results, released in August, showed the expansion story gathering pace in revenue terms while large non-cash charges kept the bottom line deeply negative. The question for investors is how the build-out is funded and how quickly contracted revenue converts into earnings.

Latest Company Context

Bit Digital reported second-quarter revenue of $32.1 million, up 15% from $27.9 million in the first quarter. Cloud services revenue was $23.8 million, up 42% sequentially, while colocation contributed $4.7 million and mining $2.4 million. Gross profit was $18.6 million, a 57.9% margin. The net loss attributable to shareholders was $107.2 million, or $0.31 per diluted share, compared with $146.7 million in the first quarter. The company said non-cash digital asset movements and other non-operating items accounted for about $86 million of the loss.

Cash was roughly $83.6 million at 30 June, of which about $56.1 million sat at WhiteFiber. Convertible notes stood at $336.2 million. Bit Digital held about 164,310 ETH including managed and liquid-staking positions, and 27.0 million WhiteFiber shares.

Key Business and Index Drivers

Expansion is concentrated in WhiteFiber's high-performance computing business. Management said new WhiteFiber cloud agreements carry more than $540 million in aggregate contract value, with over $200 million of annualised revenue expected once fully deployed. Remaining performance obligations were about $1.0 billion. The NC-1 site was not in second-quarter results and is expected to contribute from the third quarter, while full contracted billing across 40 MW of IT load was expected later in August. These are management expectations, not outcomes.

The Ethereum position is both a strategic asset and a source of earnings volatility. Mark-to-market swings and a $46.0 million impairment on liquid-staked ETH contributed to reported losses, and staking revenue fell to $0.9 million from $2.3 million. The WhiteFiber stake, implied at about $1.05 billion using the 30 June closing price, adds balance sheet value but also ties results to another listed company's share price.

Index effects are not a verified driver. BTBT's membership in major US indices has not been confirmed.

What Investors Should Watch

Execution on the data centre build-out is the first test: whether NC-1 and other capacity come online on schedule and whether contracted billing reaches the levels management described. Gross margin on cloud services, which are capital intensive, may indicate how profitable the shift proves.

Funding is the second. With convertible notes above $336 million and modest cash, investors may watch for further debt, equity issuance or asset sales, and the dilution that could follow. Ethereum price movements and impairment charges will continue to influence reported earnings. Operating cash flow, which was $46.8 million for the first half, up 33% year on year, may offer a cleaner view of underlying progress. Finally, the third-quarter report should show how much of the contracted revenue is being recognised, and whether the company updates its outlook.

Backlog Versus Balance Sheet

Bit Digital's expansion into AI cloud infrastructure is supported by sizeable contracted backlog and a valuable WhiteFiber holding, yet results remain dominated by non-cash swings and the company carries meaningful convertible debt. Whether growth proves self-funding will depend on delivery timelines, margins and crypto market conditions.