0001213900-25-076608
SEC filingBit Digital reported net income of $14.9M in Q2 2025, reversing a year-ago loss, driven by $27.2M gains on digital assets despite a 12% revenue decline.
For the three months ended June 30, 2025, Bit Digital reported total revenue of $25.66 million, a 12% decrease from $29.04 million in the same period last year. The decline was primarily driven by a 59% drop in digital asset mining revenue to $6.63 million, as the company produced only 68.2 Bitcoins compared to 244.2 in Q2 2024. This was partially offset by strong growth in cloud services revenue, which rose 33% to $16.60 million, now the largest segment. The newly acquired colocation segment contributed $1.73 million, while ETH staking revenue was flat at $0.37 million.
Gross profit (revenue less cost of revenue, excluding depreciation) was $12.48 million, down 10% from $13.89 million, with gross margin improving slightly to 48.6% from 47.8% due to mix shift toward higher-margin cloud services. Operating income swung to a gain of $11.74 million from a loss of $11.48 million, but this was heavily influenced by $27.15 million in gains on digital assets from rising crypto prices. Excluding those gains, the company would have reported an operating loss of approximately $15.4 million. Net income was $14.87 million ($0.07 per share) versus a net loss of $11.95 million ($(0.09) per share) a year ago.
As of June 30, 2025, total assets stood at $723.4 million, up from $538.2 million at December 31, 2024. Cash and cash equivalents surged to $181.2 million from $95.2 million, reflecting $199.3 million in financing proceeds (including a $141.6 million public offering) partially offset by $148.2 million in investing activities. Digital assets declined to $91.2 million from $161.4 million, as the company sold $54.0 million of Bitcoin and transferred ETH into investment funds. Property, plant, and equipment more than doubled to $253.9 million, driven by significant capital expenditures for HPC data centers and cloud equipment. Total liabilities increased to $90.2 million from $74.8 million, primarily due to new operating lease obligations. The company maintains a strong liquidity position with $273.7 million in working capital and no outstanding debt beyond lease liabilities.
Operating cash flow improved to $35.1 million for the first six months of 2025, compared to a $30.4 million use of cash in the prior year. The improvement was driven by a $54.0 million reduction in digital asset holdings and $15.5 million in depreciation, partly offset by the net loss. Investing activities consumed $148.2 million, largely for property, plant, and equipment ($147.1 million). Free cash flow (operating minus capex) was negative $113.1 million, reflecting the heavy infrastructure buildout. Financing activities provided $199.3 million, including the June 2025 public offering ($141.6 million net) and ATM proceeds ($58.5 million). The company ended the period with $184.9 million in cash, cash equivalents, and restricted cash.
Management highlighted the strategic decision to transition Bit Digital into a pure-play Ether staking and treasury company. In June 2025, the company announced it would convert its Bitcoin holdings into Ether over time and initiated a strategic review of its bitcoin mining operations, which may result in a sale or wind-down. The HPC and cloud services business was contributed to newly created subsidiary WhiteFiber, which completed an IPO in August 2025, with Bit Digital retaining a 74.3% stake. The company is investing heavily in data center infrastructure, with projects in Montreal (MTL-2 and MTL-3) and North Carolina (NC-1) expected to come online in late 2025. Cloud services order book includes multi-year agreements with the Initial Customer, Boosteroid, and DNA Fund, providing revenue visibility. No quantitative guidance was provided for upcoming periods.
Segment performance: Digital asset mining gross profit fell to $0.56 million (8.4% margin) from $5.54 million (34.5% margin) last year, due to lower Bitcoin production and higher electricity and profit-sharing costs. Cloud services gross profit rose 29% to $10.20 million, with margin improving to 61.5% from 63.2% as capacity lease costs increased. Colocation services generated a gross profit of $1.04 million (60.2% margin). ETH staking gross profit was $0.34 million (91.9% margin), relatively stable. Share-based compensation surged to $6.9 million in Q2 2025 versus $0.4 million in Q2 2024, primarily due to large RSU grants to executives and employees. The company also recorded a $2.5 million benefit to depreciation from extending the estimated useful lives of cloud equipment from three to five years, effective January 1, 2025. Goodwill of $20.2 million is carried from the Enovum acquisition. Remaining performance obligations for colocation and other services totaled $13.9 million as of June 30, 2025. No impairments were identified.