Bit Digital (BTBT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue more than doubled year-over-year to $29M, driven by the first full quarter of HPC business, higher Bitcoin prices, and expansion into AI infrastructure.

• Gross margins expanded by over 1,000 basis points to 47.6%-48%.

• Adjusted EBITDA and EPS were negatively impacted by an $11.5M unrealized loss on digital assets, with a GAAP loss per share of $0.09.

• The company remains debt-free, with a strong balance sheet and $61.4M in cash as of June 30, 2024.

• Institutional-scale mining fleet of over 50,000 miners, 4.3 EH/s, and 86% carbon-free energy usage.

Financial highlights

• Total Q2 2024 revenue was $29M, up 220% year-over-year; Bitcoin mining revenue was $16.1M, HPC services $12.5M, and ETH staking $0.37M.

• Gross profit rose over 300% to $13.8M, with mining contributing $5.5M and HPC $7.9M.

• Net loss for Q2 2024 was $12.0M, compared to a $2.4M loss in Q2 2023.

• CapEx for the quarter was $5M, used for new miners and HPC equipment deposits.

• Total liquidity as of June 30, 2024: $191.9M, including $61.4M cash and $130.5M digital assets.

Outlook and guidance

• The company expects to reach a $100M annualized revenue run rate by year-end 2024, even if a major GPU expansion is delayed to 2025.

• Plans to double active mining fleet to 6.0 EH/s by year-end 2024 and improve fleet efficiency.

• Focus remains on improving mining fleet efficiency, expanding the HPC business, and systematic conversion of mined BTC to ETH for staking yield.

• Material exahash growth by year-end is unlikely unless mining economics improve or HPC opportunities diminish.

• Cautious on exahash growth due to challenging mining economics post-halving; opportunistic purchases possible.