Bit Digital (BTBT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $22.7 million, up 96% year-over-year, driven by the launch and expansion of HPC services and the $46 million acquisition of Enovum, a Tier 3 data center operator.

• HPC services contributed $12.2 million in revenue, while bitcoin mining revenue declined 11% to $10.1 million.

• Net loss for Q3 2024 was $38.8 million, with a loss per share of $0.26, compared to a $7.2 million loss and $0.08 per share in Q3 2023.

• Adjusted EBITDA was negative $21.8 million, impacted by $21.9 million in unrealized digital asset losses and non-recurring costs.

• The company is building a vertically integrated HPC platform, expanding its data center pipeline, and targeting a $100 million annualized revenue run rate for its HPC business by year-end 2024.

Financial highlights

• Q3 2024 total revenue was $22.7 million (+96% YoY); nine-month revenue was $82.0 million (+184% YoY).

• Bitcoin production fell 59% YoY to 165.4 BTC, with mining revenue down 11% to $10.1 million.

• HPC services contributed $12.2 million in revenue and $6.7 million in gross profit; ETH staking added $450,000.

• Gross profit rose 162% to $7.2 million, with gross margin expanding 800 basis points to 32%.

• Cash, cash equivalents, and restricted cash: $105.6 million; total liquidity: $223.6 million as of September 30, 2024.

Outlook and guidance

• Confident in achieving a $100 million annualized revenue run rate for the HPC business by year-end 2024, with nearly 90% of the target secured through signed term sheets and MSAs.

• Plans to reach 3 exahash in Bitcoin mining by the end of February or first half of 2025, with $15–$20 million in CapEx.

• Data center pipeline expected to add 8 MW by 2Q 2025 and reach 32 MW by year-end, with further expansion under evaluation.