Bit Digital Sees Growth in Cloud Services Amid Q2 Revenue Decline

Bit Digital, Inc (NASDAQ: BTBT) reported its Q2 earnings results on August 10. The digital asset mining company generated $32.1 million in revenue for the quarter, a 15% sequential increase due to growth in cloud services.

The revenue from cloud services rose 42% from Q1 to $23.8 million, with a gross margin of 58%. Colocation services produced $4.7 million in revenue, maintaining its previous quarter's level but with a 63% gross margin.

Ethereum staking revenue fell by 61% to $0.9 million compared to the prior quarter, while digital-asset mining revenue decreased by 58% year-over-year due to Bit Digital's continued wind-down of this business. The company attributed part of the decline in Ethereum staking revenue to unstaking some of its Ethereum holdings to support a financing arrangement with WhiteFiber.

Bit Digital raised $50 million in liquidity against a portion of its Ethereum holdings and originated a delayed-draw term facility for up to $150 million with commitments from WhiteFiber. This bridge financing aims to support the North Carolina data-center investment until permanent project financing is secured.