Bit Digital Inc (NASDAQ:BTBT) saw its revenue grew 15% from the prior quarter thanks to the strength of its cloud services.
The company posted total revenue of $32.1 million for the quarter, with cloud services revenue climbing 42% sequentially on new and expanded contracts.
Net loss attributable to Bit Digital shareholders narrowed to $107.2 million, or $0.31 per diluted share, from $146.7 million, or $0.45 per diluted share, in the first quarter, with results weighed down by non-cash movements on digital assets.
During the quarter, Bit Digital raised $50 million against a portion of its ETH treasury and used its balance sheet to originate a delayed draw term facility for WhiteFiber, with commitments of up to $150 million guaranteed by the WhiteFiber parent. The facility funded WhiteFiber's growth initiatives, including development of its NC-1 data center campus, while preserving Bit Digital's ETH position and avoiding equity issuance at either company.
"This quarter was about capital allocation," said Sam Tabar, CEO of Bit Digital. "WhiteFiber required interim capital to support its growth initiatives while pursuing permanent financing for NC-1.”
Tabar noted that Bit Digital borrowed against a portion of its ETH treasury and became the lender, which he said allowed it to support WhiteFiber's growth without selling Ethereum or diluting ownership.
"We are not trying to hold the most ETH. We are trying to get the most out of the ETH we hold,” Tabar said. “Our strategy is to build a productive balance sheet, assets that earn while they appreciate, assets that finance operating businesses, and businesses that generate cash flow we can reinvest."
The company said it does not intend to sell its WhiteFiber shares in 2026, continuing to view the stake as a long-term strategic asset.
Bit Digital also continued winding down its bitcoin mining operations during the quarter as part of its broader shift toward Ethereum and infrastructure-related activities, noting the segment remains gross margin positive but is no longer a strategic growth priority.
Tabar added WhiteFiber has signed new multi-year cloud services agreements since its last earnings call representing more than $540 million in aggregate contract value, with its cloud services portfolio expected to generate more than $200 million in annualized revenue once fully deployed.
"Our operating results improved through the quarter. Our valuation did not," Tabar told shareholders. "The market continues to value Bit Digital primarily as a passive digital asset treasury, and the Board is currently evaluating our options to address that disconnect."
Bit Digital shares gained 5.1% on Thursday morning.