Bit Digital Inc (NASDAQ:BTBT) saw its second quarter revenue surge 220% year-over-year as it commenced its High Performance Computing (HPC) services business and realized a higher Bitcoin price.
Revenue was $29 million, including revenue from Bitcoin mining of $16.1 million, up 80% from the year-ago quarter.
HPC revenue was $12.5 million, compared to nil in the previous year.
It exited the quarter with cash, cash equivalents, and restricted cash of $61.4 million and total liquidity of $191.9 million.
Its loss per share was $0.09, compared to a loss per share of $0.03 for Q2, 2023.
Management described the the quarter as “an important step in the evolution of Bit Digital.”
“Despite the reduction in block rewards from the April 'halving event', our total revenue more than doubled from the prior year, principally aided by the first full quarter of revenue from our HPC services business,” they said.
“Our balance sheet remains a key strength that will enable us to withstand recent market volatility and deploy growth capital into high-return opportunities.”
Bit Digital continues to see its HPC business as the most attractive use of capex in the current environment.
“Our growth pipeline remains strong, and we continue to believe we will be able to reach our $100 million annualized revenue target by year-end 2024 even if the 2,000 GPU expansion deployment with our existing customer is pushed into 2025,” management said.
HPC customer win
Further, the company announced that it has signed a significant binding term sheet with a new HPC customer Boosteroid.
Boosteroid will initially purchase a starting quantity of GPU servers with a five-year service duration, expected to generate approximately $13 million in revenue over the five-year term.
The initial purchase includes GPU servers based on AMD EPYC 4th Gen CPUs and RX7900XT GPUs, customized by ASUSTeK Computer and AMD for Boosteroid which will be deployed across a network of more than 10 data centers in the US and Europe starting in two to three months.
Bit Digital will provide Boosteroid the option to draw down additional serves in multiples of 100 for up to a total of 50,000 GPU servers within five years, depending on Boosteroid’s deployment plans.
The full 50,000 GPU deployment represents a more than $700 million opportunity for Bit Digital, the company highlighted.
"We are excited to expand our HPC business and provide mission-critical computing solutions to Boosteroid, a customer in a new end-market for our HPC offerings,” Bit Digital CEO Sam Tabar said in a statement.
“We are impressed with Boosteroid's business model and look forward to supporting their ambitious growth plans. We aim to deliver exceptional service quality and execution, laying the foundation for a long-term and growing partnership between our companies.”
Investors welcomed the update, sending shares of Bit Digital 22% higher in the early afternoon on Tuesday.
- Updated with share price movement -