Bit Digital Inc (NASDAQ:BTBT) reported a significant year-over-year increase in revenue for the third quarter driven by the expansion of its high-performance computing (HPC) business.
Total revenue increased 96% to $22.7 million, with HPC contributing $12.2 million.
The company said it continues to expect to reach its $100 million run-rate revenue target for its HPC business by the end of 2024.
"The maturation of our HPC business was a defining theme this quarter. We expanded our GPU cloud client base with the addition of Boosteroid and strengthened our team with critical hires, including a new CTO, Head of Revenue, and key talent in sales and engineering,” management said in a statement accompanying its quarterly results.
“October, we closed the acquisition of Enovum, further enhancing our HPC capabilities and positioning us to scale quickly to meet growing demand. We believe these investments lay a strong foundation for sustainable growth and set the stage for a robust future.”
For Q3, revenue from Bitcoin mining decreased by 11% from the year-ago quarter.
The company earned 165.4 Bitcoin, down 59% year-over-year on reduced block rewards following the halving event in April 2024 and increased network difficulty, partially offset by a 104% increase in operational hash rate.
Management noted these “anticipated headwinds” during the first full quarter following the Bitcoin halving.
“We intentionally refrained from capital investments to upgrade our fleet to date in 2024, and the impact from legacy miners operating during the third quarter was a drag on our results,” management said.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was impacted by a $21.9 million unrealized loss on digital assets, with the company reporting an EBITDA loss of $21.8 million compared to an EBITDA loss of $2.9 million in the comparable period last year.
Bit Digital exited the quarter with cash, cash equivalents and restricted cash of $105.6 million and total liquidity of $223.6 million.