Bit Digital posts Q2 loss as revenue beats forecasts

Bit Digital Inc. on Thursday posted a second-quarter adjusted loss of $0.27 per share, falling short of analyst expectations, though revenue surpassed forecasts as the company scaled up its cryptocurrency mining operations.

The New York-based firm, which operates data centers for Bitcoin mining, reported revenue of $42.3 million for the quarter, up 12% from the prior-year period and ahead of the $40.1 million consensus estimate compiled by Refinitiv. Adjusted net income totaled $18.7 million, compared with a loss of $15.2 million in the same quarter of 2023.

Bit Digital attributed the revenue growth to increased hash rate capacity and higher Bitcoin prices during the period. The company’s total hash rate rose to 7.2 exahashes per second by the end of June, up from 6.5 EH/s in March. Bitcoin averaged $63,500 in Q2, compared with $62,800 in Q1.

Despite the revenue beat, the company’s adjusted loss per share widened from a loss of $0.22 in the prior-year quarter. The shortfall was driven by higher energy costs and depreciation expenses tied to expanded infrastructure. Operating expenses climbed to $31.2 million from $22.8 million a year earlier.

Analysts had expected a loss of $0.25 per share on revenue of $40.1 million, according to Refinitiv data. Shares of Bit Digital fell 3.2% in after-hours trading following the release.

The company maintained its full-year revenue guidance of $160 million to $180 million, reaffirming its commitment to expanding capacity amid volatile crypto market conditions.