Bit Digital Inc (NASDAQ:BTBT) swung to a profit in the second quarter of fiscal 2025, earning $14.9 million, or $0.07 per share, compared with a $12 million loss a year earlier, driven by gains on digital assets and growing service revenue.
Adjusted EBITDA rose to $27.8 million from a loss of $3.8 million a year earlier, supported by a $27.2 million gain on digital assets.
Total revenue for the quarter ended June 30 was $25.7 million, down 11.7% from a year ago, reflecting the company’s strategic pivot away from Bitcoin mining toward Ethereum treasury and staking activities.
Revenue from cloud services grew 32.8% year-over-year to $16.6 million, while its newly launched colocation services contributed $1.7 million.
Digital asset mining revenue fell 58.8% to $6.6 million attributed to higher network difficulty, the April 2024 Bitcoin halving, and a smaller active hash rate.
Cash and cash equivalents more than doubled to $181.2 million from $95.2 million at year-end 2024.
Following the liquidation of most of its Bitcoin holdings after quarter-end, the company expanded its Ethereum position from 30,663 Ethereum at June 30 to 121,076 Ethereum by August 11, valued at roughly $511.5 million, with 105,015 ETH actively staked.
"This quarter marked the beginning of Bit Digital's transformation into a dedicated Ethereum treasury and staking platform," Bit Digital CEO Sam Tabar said in a statement.
“Our objective is to build one of the largest on-chain Ethereum balance sheets in the public markets and to generate attractive staking yields for shareholders. This isn't a trend we're chasing — we've held Ethereum since 2021 and have deep conviction in its long-term value."
The quarter also saw the IPO of high-performance computing subsidiary WhiteFiber, in which Bit Digital retains a 74.3% stake valued at about $468.4 million as of the market close on August 13.
“The recently completed WhiteFiber IPO unlocked substantial value for shareholders, and our retained stake gives us additional financial strength as we pursue this new direction,” Tabar said.
“With a growing Ethereum treasury and a strong balance sheet, we believe we are well-positioned to deliver sustainable, Ethereum-based returns over the long term."