Bit Digital, Inc. Announces First Quarter of Fiscal Year 2025 Financial Results
NEW YORK, May 15, 2025 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) (the "Company"), a global platform for high-performance computing ("HPC") infrastructure and digital asset production headquartered in New York City, today announced its financial results for the First Quarter of 2025. The Company will host a conference call on May 16, 2025, at 10:00 AM ET to discuss results (click here for registration information).
Financial Highlights for First Quarter of 2025
-- Total revenue for the First Quarter of 2025 was $25.1 million, a 17%
decrease compared to the prior year's results. The decrease was driven
by a decline in Digital asset mining revenue following the April 2024
halving and partially offset by continued growth in Cloud services
revenue and the addition of Colocation services revenue.
-- Revenue from bitcoin mining was $7.8 million for the quarter, a 64%
decrease compared to the prior year's quarter. Cloud services revenue
was $14.8 million, an 84% increase from the prior year's quarter.
Colocation services revenue was $1.6 million for the quarter as compared
to none in the prior year's quarter. ETH staking revenue was $0.6
million for the quarter, a 72% increase from the prior year's quarter.
-- Revenue from digital asset mining comprised 31% of total revenue for the
first quarter of 2025 compared to 72% for the prior year's quarter.
-- The Company had cash, cash equivalents and restricted cash of $61.3
million, and total liquidity (defined as cash, cash equivalents and
restricted cash, USDC, and the fair market value of digital assets) of
approximately $141.4 million, as of March 31, 2025.
-- Total assets were $458.2 million and Shareholders' Equity amounted to
$417.4 million as of March 31, 2025.
-- Adjusted EBITDA([1]) was $(44.5) million for the First Quarter of 2025
compared to $58.5 million for the first quarter of 2024. Adjusted EBITDA
for Q1 2025 includes $49.2 million in mark-to-market losses on digital
assets compared to $45.7 million of gains in Q1 2024.
-- GAAP loss per share was $(0.32) on a fully diluted basis for the First
Quarter of 2025 compared to earnings per share of $0.43 for the first
quarter of 2024.
Operational Highlights for First Quarter of 2025
-- The Company earned 83.3 bitcoins during the First Quarter of 2025, an
80% decrease from the prior year. The decline was driven by a reduction
in block rewards following the halving event in April 2024, an increase
in network difficulty, and a decrease in the Company's average
operational hash rate following a fleet deployment in connection with
the Company's exit from Coinmint facilities.
-- The Company earned 211.0 ETH in native staking for the three months
ended March 31, 2025.
-- Treasury holdings of BTC and ETH were 417.6 and 24,434.2, respectively,
with a fair market value of approximately $34.5 million and $44.5
million on March 31, 2025, respectively.
-- As of March 31, 2025, we had 20,854 miners owned or operating (in
Iceland) for bitcoin mining with a total maximum hash rate of 2.4 EH/s.
The Company's active hash rate of its bitcoin mining fleet was
approximately 1.5 EH/s as of March 31, 2025.
-- The Company had approximately 21,568 ETH actively staked in native
staking protocols as of March 31, 2025.
-- As of January 1, 2025, Bit Digital officially transitioned to domestic
issuer status under U.S. securities law.
-- In January 2025, the Company entered into a new agreement to supply its
first customer for an additional 464 B200 GPUs for a period of eighteen
months. This new agreement replaced the prior agreement whereby the
Company was to provide the customer with an incremental 2,048 H100 GPUs.
The contract represents approximately $15 million of annualized revenue
and features a two-month prepayment from the customer. The customer has
elected to defer the commencement date until August 20(th), 2025, which
is the latest allowable date under the agreement.
-- In addition to the above, the Company signed multiple new cloud services
agreements during the first quarter totaling more than 200 NVIDIA H200
GPUs, with contract durations ranging from one to twelve months. These
deployments supported training and inference workloads and reflect
continued momentum and customer diversification across the Company's GPU
cloud platform.
-- In February, the Company officially rebranded its HPC business as
WhiteFiber, Inc., encompassing its GPU cloud services and HPC data
center platform, Enovum Data Centers.
-- In February, the Company, through its high-performance computing
platform WhiteFiber, secured a five-year, 5MW colocation agreement with
Cerebras Systems ("Cerebras"), a leader in generative AI. In April, Bit
Digital announced the selection of a new data center site in
Saint-Jérôme, Québec ("MTL-3") to fulfill the contract. The facility,
being developed by Enovum under a lease-to-own structure, is expected to
commence operations in July 2025, with total development costs estimated
at approximately CAD $55 million (approximately $40 million USD).
Cerebras holds a right of first refusal for additional capacity at the
site.
-- In March, the Company announced a strategic partnership between
WhiteFiber and Shadeform, a leading multi-cloud GPU marketplace, to
deliver on-demand access to NVIDIA B200 GPUs. Bit Digital received its
first shipment of B200s during the quarter, comprising 64 servers (512
GPUs), and began phased deployment in April. Through the Shadeform
integration, WhiteFiber's GPU cloud became globally accessible across
more than 100 regions, enabling developers and enterprises to access
high-performance AI infrastructure without long-term commitments
-- In March 2025, the Company executed two new service orders under its
existing agreement with Boosteroid, a global cloud gaming provider. The
orders total 701 GPU servers under five-year terms, with deployments
scheduled to commence in May and June 2025. These new contracts
represent approximately $2.1 million in annualized contract value,
bringing total contract value from Boosteroid to approximately $3.6
million annually and over $18 million in total contract value.
Subsequent Events
-- In April 2025, the Company entered into a definitive agreement to
acquire a data center property in Madison, North Carolina. Closing of
the transaction is subject to customary closing conditions, including
receipt of an energy study verifying utility capacity. An earnest money
deposit of $2.25 million was deposited in escrow pursuant to the terms
of the Purchase Agreement, of which $1.25 million is non-refundable to
us.
-- In April 2025, the Company signed two additional cloud services
agreements with DNA Fund. The first agreement, commencing in early May
2025, includes 104 NVIDIA H200 GPUs under a 25-month term. The second,
expected to commence in May 2025, includes 512 H200 GPUs under a
23-month term. With these additions, DNA Fund's total contracted
deployment increased to 1,192 GPUs. Combined, the agreements represent
approximately $20.9 million of annualized revenue.
Management Commentary
"Our first quarter results were affected by mark-to-market losses on digital assets and lower bitcoin mining revenue, both of which reflect industry-wide headwinds and the strategic rebalancing of our business. We continued to make meaningful progress in scaling our infrastructure platform and diversifying our revenue streams.
Cloud services revenue increased 84% compared to the year-ago period and accounted for the majority of total revenue. Demand was driven by both long-term enterprise contracts and short-term workloads from AI-native developers. Our strategic investments in next-generation hardware and distribution partnerships, including B200 deployments and our integration with Shadeform, helped expand platform reach and customer access.
Colocation services contributed a full quarter of revenue following our acquisition of Enovum in late 2024. We expect this business line to become a major growth engine as we expand our development pipeline to meet growing customer demand.
Bitcoin mining accounted for 31% of total revenue in the quarter, down from 40% in Q4 and 72% a year ago. The decline reflects both the halving event and the ongoing redeployment of miners from Coinmint facilities, which we used as an opportunity to retire less efficient assets and reposition our fleet. While mining remains a component of our platform, we expect its contribution to continue declining over time as our infrastructure businesses grow.
Gross margins improved both sequentially and year-over-year, driven by stronger contribution from Cloud and Colocation segments and ongoing cost discipline. We ended the quarter with approximately $140 million in total liquidity and no debt, giving us the flexibility to invest in high-return initiatives.
We advanced our platform on several fronts, deploying NVIDIA B200 GPUs, expanding key customer relationships, and progressing our datacenter expansion strategy. These milestones support our roadmap and reflect our growing relevance in the AI infrastructure landscape. As we scale our platform, we remain focused on disciplined execution and long-term value creation."
[1] Adjusted EBITDA refers to earnings before interest expense, income tax expense and depreciation and amortization expense ("EBITDA") adjusted to eliminate the effects of certain non-cash and / or non-recurring items. Potential adjustments are listed within the section under the header "Non-GAAP Financial Measures" in the Form 10-Q.
About Bit Digital
Bit Digital, Inc. is a global platform for high-performance computing ("HPC") infrastructure and digital asset production headquartered in New York City. The Company's HPC business operates under the WhiteFiber Inc. ("WhiteFiber") brand. Our operations are located in the US, Canada, and Iceland. For additional information, please contact ir@bit-digital.com or visit our website at www.bit-digital.com.
Investor Notice
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 (Annual Report). Notwithstanding the fact that Bit Digital Inc. has not conducted operations in the PRC since September 30, 2021 we have previously disclosed under Risk Factors in our Annual Report: "We may be subject to fines and penalties for any noncompliance with or any liabilities in our former business in China in a certain period from now on." Although the statute of limitations for non-compliance by our former business in the PRC is generally two years and the Company has been out of the PRC, for more than two years, the Authority may still find its prior bitcoin mining operations involved a threat to financial security. In such event, the two-year period would be extended to five years. The risk factor in the Form 10-K titled "If we are classified as a passive foreign investment company ("PFIC") U.S. taxpayers who own our ordinary shares may have adverse United States federal income tax consequences" has been modified to the extent that Management has obtained a third party analysis for 2024 and does not believe that Bit Digital should be classified as a PFIC for 2024. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See "Safe Harbor Statement" below.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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