BTBT Jumps on Cloud Services Pivot and Ethereum-Funded Growth
Bit Digital Inc.'s stock has surged by 13.93% as investors react to its expanding Bitcoin mining operations and pivot into cloud services. The company reported a Q2 EPS loss of $0.31, which was narrower than last year's $0.45 loss, while revenue came in at $32.1M, beating the consensus estimate of $22.61M.
The key driver behind this growth is Bit Digital's WhiteFiber NC-1 project, a cloud and colocation business that has secured over $540M in multi-year contracts. This contract backlog is expected to produce more than $200M in annualized revenue once fully deployed.
Bit Digital is using a treasury-backed ETH financing structure to fund this project, which protects current shareholders from dilution while keeping the company levered to Ethereum upside. However, if ETH tanks, this balance sheet creativity becomes a risk.