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    BTBT
    Earnings call· Jun 2026(Q2 FY26)

    Bit Digital Q2 FY26 earnings call BTBT

    Aug 13, 2026 Source

    Executive summary

    Bit Digital Q2 FY26 — Strategic Capital Allocation and White Fiber Growth

    Bit Digital is actively managing its balance sheet as a "strategic asset company," leveraging its Ethereum holdings to finance the growth of its White Fiber data center business. Despite a significant net loss driven by non-cash digital asset revaluations, the company demonstrated strong operational momentum in Cloud Services and built a substantial RPO. Management is evaluating a share buyback to address the persistent market valuation discount.

    Highlights

    5

    • Q2 revenue increased 15% sequentially to $32.1 million, driven by strong growth in Cloud Services.

    • Cloud Services revenue grew 42% sequentially to $23.8 million with a 58% gross margin, reflecting new contracts and expansions.

    • Remaining Performance Obligations (RPO) reached approximately $1 billion at quarter-end, with $136.7 million expected in 2027 alone, exceeding total 2025 revenue.

    • Infrastructure and staking now represent 89% of total revenue, up from 70% a year ago, demonstrating successful business transition.

    • White Fiber secured new contracts worth over $500 million in aggregate contract value, including next-gen GPU deployments.

    Concerns

    5

    • Net loss attributable to shareholders was $107.2 million or $0.31 per share, primarily due to $86 million in digital asset revaluation and derivative losses.

    • Recorded a $46 million non-cash impairment on liquid stakes used in the White Fiber financing, reflecting accounting treatment.

    • Ethereum staking revenue declined sequentially to $0.9 million from $2.3 million, due to off-take for financing and ETH price decline.

    • Digital Assets Mining revenue declined 58% year-over-year for the six months, as the business winds down.

    • The company's stock trades at a significant discount to intrinsic value, sometimes exceeding 40% by management's calculations.

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Cloud Services
    Driven by new contracts entering service and expansion of existing agreements. Growth for the 6 months.
    		$23.8 millionup 29% year-over-yearup 42% sequentially58%
    Colocation Services
    Growth for the first half. C1 has not yet reflected in those results and expected to begin contributing in the third quarter.
    		$1.7 millionincreased 182% year-over-yearessentially flat sequentially63%
    Ethereum Staking
    Sequential decline reflects decision to off-take a portion of Ethereum to collateralize the facility and decline in Ethereum price. Growth for the 6 months.
    ETH rewards earned: 440ETH rewards earned prior quarter: 949
    		$0.9 millionincreased 246% year-over-yearcompared to $2.3 million in the first quarter—
    Digital Assets Mining
    As expected as we continue to wind down that business. Growth for the 6 months.
    Bitcoin mined: 32.3Bitcoin mined prior quarter: 48.1
    		$2.4 milliondeclined 58% year-over-yearcompared to 48.1 Bitcoin in the first quarter26%

    Operational metrics

    12
    Non-GAAP gross margin
    57.9
    Q2 FY26

    Gross profit for the second quarter was $18.6 million, a gross margin of 57.9%.

    Net loss attributable to Bit Digital shareholders
    $107.2
    Q2 FY26

    Net loss attributable to Bit Digital shareholders was $107.2 million or $0.31 per share.

    Loss on digital assets carried at fair value
    $28.8
    Q2 FY26

    We recorded $28.8 million of loss on digital assets carried at fair value, reflecting market-to-market movement on our ECM and Bitcoin Holdings.

    Non-cash impairment on liquid stakes
    $46
    Q2 FY26

    We also recorded a $46 million noncash impairment on liquid states used in the White Fiber financing transaction that reflects the accounting treatment of the position and does not represent a realized loss.

    Loss from change in fair value of derivative liability
    $14
    Q2 FY26

    Separately, there was a $14 million loss from the change in fair value of the derivative liability associated with our convertible notes.

    Interest expense
    $8.1
    Q2 FY26

    and $8.1 million in interest expense, neither reflects operating performance.

    Ethereum held directly
    75,757
    as of June 30

    We held 75,757 Ethe directly carry a fair value of $118.9 million. That includes Etherum late service stakes through our validated banner.

    Ethereum purchased
    8,568
    Q2 FY26

    On May 11, we purchased 8,568 for $20 million at an average cost of $2,334 per ETH.

    Cash and investments balance
    $83.6
    Q2 FY26

    Cash and cash equivalents were approximately $83.6 million on a consolidated basis, of which approximately $27.5 million was held at Bit Digital and $56.1 million in White Fiber. (ASR error corrected from $27.5 billion to $27.5 million)

    Contract liabilities
    $143.1nearly doubled from $79.6 million at year-end
    Q2 FY26

    Contract liabilities nearly doubled to $143.1 million from $79.6 million at year-end that represents revenue already contracted and cash already collected for services we have yet to deliver.

    Revenue mix
    89against 70% a year ago
    Q2 FY26

    Infrastructure and staking now represent 89% of our revenue against 70% a year ago.

    NAV Discount
    >40
    Q2 FY26

    The discount between market value and intrinsic value has been persistent and at times has exceeded 40% by company calculations, sometimes reaching 43%.

    Industry KPIs

    4
    MetricValueDetails
    Capacity CAPEX40MW
    Revenue growth$32.1M
    Rpo current rpo$1B
    Bookings billings$500M

    Orderbook & backlog

    1
    Remaining Performance Obligations$1 billionQ2 FY26

    Expected recognition: $57.7 million (balance of 2026), $136.7 million (2027), $105.1 million (2028), remainder thereafter. The 2027 figure alone is more than total 2025 revenue.

    Deals & partnerships

    3
    White FiberDelayed draw term facility provided by Bit Digital to White Fiber, collateralized by Ethereum.$150 million90 days to half the year

    Bit Digital raised $50 million liquidity against a portion of its Ethereum to originate a delayed draw term facility for White Fiber, guaranteed by White Fiber parent. Designed as a temporary bridge to permanent financing for NC1.

    End Scale10-year agreement for initial 40-megawatt build-out at White Fiber's flagship facility in North Carolina.$865 million10-year

    Flagship facility in North Carolina is anchored by End Scale and its investment-grade off-taker.

    MultipleNew contracts for cloud services, including next-generation GP deployments and capital-efficient managed services agreements.$500 million

    White Fiber has signed new contracts representing more than $500 million of aggregate contract value.

    Risks & headwinds

    4
    Ethereum price volatilityQ2 FY26

    Ethereum spent most of the quarter below $2,000.

    Mitigation: Company operates through multiple market cycles with a consistent approach; maintains conviction in long-term value; used ETH as collateral for White Fiber financing rather than selling.

    Persistent market valuation discountPersistent through Q2 FY26

    Exceeded 40% (sometimes 43%) by company calculations.

    Mitigation: Board is evaluating opportunities, including a share buyback program, to actively close the gap.

    Significant non-cash losses from digital asset revaluation and derivative liabilitiesQ2 FY26

    $86 million of the $107.2 million net loss attributable to shareholders.

    Mitigation: Management clarifies these items do not reflect operating performance; focus on long-term asset appreciation and strategic allocation.

    Declining revenue from digital asset mining businessOngoing

    Mining revenue declined 58% year-over-year for the 6 months.

    Mitigation: Actively winding down this business and reallocating capital to more productive assets like infrastructure and staking.

    What to watch in Q3 FY26

    4

    White Fiber NC1 full contracted run rate billing

    later this month
    CurrentCustomer deployment and testing underway, billing commenced.
    TargetFull contracted run rate billing

    Why it matters

    This will validate the revenue visibility from the $865 million End Scale contract and demonstrate White Fiber's operational ramp-up.

    At White Fiber's flagship facility, initial capacity has been delivered customer deployment and testing is underway and billing has commenced. White fiber expects to reach the full contracted run rate building later this month under its 10-year agreement with scale representing approximately $865 million of contracted revenue.

    Q&A highlights

    5

    When might the Board decide on a buyback, and would it be funded by selling White Fiber shares, given the commitment not to sell White Fiber this year?

    Sam Tabar stated the Board is vigorously discussing a buyback due to the 40%+ NAV discount but cannot give exact timing. He reaffirmed the commitment not to sell White Fiber shares this year, citing "greed" and belief in White Fiber's future performance. He noted multiple potential liquidity sources for a buyback, not just White Fiber proceeds.

    “I can't give details on the exact timing of that. The Board is still considering how and when to do that. But I can tell you that it is a very vigorous discussion that we're having. We think the 40% or sometimes even 43% discount to NAV is unacceptable and makes no sense.”

    asked by Nick Giles · answered by Samir Tabar

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Asset Company Model

    Bit Digital is positioning itself as a "strategic asset company," actively allocating capital between digital assets (Ethereum) and AI infrastructure (White Fiber). The core thesis involves using a productive balance sheet where assets earn while they appreciate and finance operating businesses, with cash flow reinvested into additional strategic assets. This model aims to converge the digital asset and AI sectors, providing meaningful exposure to both.

    02

    White Fiber Financing and Growth

    The company provided a $150 million delayed draw term facility to White Fiber, guaranteed by its parent, using a portion of its Ethereum holdings as collateral. This bridge financing supports White Fiber's flagship North Carolina facility, which is anchored by End Scale with a 10-year, $865 million contracted revenue agreement. White Fiber is also expanding its development pipeline and has signed new contracts totaling over $500 million in aggregate value for next-gen GPU deployments and managed services.

    03

    Ethereum Holdings and Strategy

    Bit Digital holds 75,757 ETH, valued at $118.9 million as of June 30, 2026. The company views Ethereum as an appreciating asset that generates protocol-native returns and provides liquidity. Despite price volatility, management maintains conviction in Ethereum's long-term value, citing growing institutional adoption and tokenized real-world assets settling on the network. The decision to use ETH as collateral for White Fiber financing, rather than selling it or issuing equity, reflects this long-term view.

    04

    Business Transition and Revenue Mix

    The company is actively winding down its digital asset mining business, with mining revenue declining 58% year-over-year for the six months. This capital is being reallocated to more productive assets. Infrastructure and staking now account for 89% of total revenue, up from 70% a year ago, indicating a significant shift towards cloud and colocation services and away from traditional mining.

    05

    Valuation Disconnect and Potential Buyback

    Management highlighted a persistent and significant discount (sometimes exceeding 40%) between Bit Digital's market valuation and its intrinsic value, based on observable market values of its assets. The Board is actively evaluating opportunities, including a share buyback program, to address this valuation gap and enhance shareholder value, considering it one of the highest return uses of capital available.

    06

    Remaining Performance Obligations (RPO)

    Bit Digital reported approximately $1 billion in Remaining Performance Obligations at quarter-end. This includes $57.7 million expected in the balance of 2026, $136.7 million in 2027, and $105.1 million in 2028, with the remainder thereafter. The 2027 RPO figure alone surpasses the company's total revenue for 2025, indicating strong future revenue visibility and contracted demand.

    AI-generated summary of the company’s earnings call. Not investment advice.