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Bit Digital Q2 2026 Earnings: Revenue Up 15%, Mining Declines, Ethereum Collateral Fuels WhiteFiber Expansion
Bit Digital’s Q2 2026 results reveal a company in the midst of a strategic pivot. Revenue climbed 15 % to $32.1 million, and the net loss narrowed from $146.7 million to $107.2 million, even as the firm continues to phase out its mining arm and double‑down on AI‑infrastructure.
The uptick was driven by a 42 % jump in cloud‑services revenue, which rose to $23.8 million, and a 182 % surge in colocation income for the first half of the year. The company’s infrastructure division remains the primary engine of growth.
Contract liabilities—cash already received but not yet recognized as revenue—more than doubled to $143.1 million from $79.6 million at the end of 2025, backed by a backlog of roughly $1.0 billion. Since the last earnings call, WhiteFiber, Bit Digital’s AI‑infrastructure and high‑performance‑computing subsidiary, signed multi‑year cloud‑services agreements totaling over $540 million in aggregate contract value. Once fully deployed, the pipeline could generate more than $200 million in annualized revenue.
To fund WhiteFiber’s NC‑1 data‑center campus, the company did not sell Ethereum or issue new equity. Instead, it borrowed $50 million against a portion of its Ethereum holdings and used that liquidity to secure a credit facility of up to $150 million for WhiteFiber. The facility is guaranteed by WhiteFiber’s parent and reviewed by independent committees at both entities, allowing the firm to expand the data‑center while preserving its coins and ownership stake.
Operating cash flow for the first six months of the year rose 33 % to $46.8 million. In contrast, older mining operations are shrinking: digital‑asset mining revenue fell 58 % year‑over‑year for the first half of 2026, and the amount of bitcoin mined per quarter dropped from 48.1 to 32.3. Management said no meaningful capital will be invested in the segment going forward. Ethereum staking revenue also fell, from $2.3 million to $0.9 million in a single quarter, a decline attributed to repositioning coins into liquid staking and lower average ETH prices.
The accounting for the Ethereum treasury has grown more complex. Bit Digital recorded a $46 million non‑cash impairment on its liquid‑staked ETH holdings during the quarter, one of several non‑cash items that made up roughly $86 million of the $107.2 million net loss. Convertible notes rose to $336.2 million, and the new WhiteFiber facility adds up to $150 million more on top, collateralized in part by $105.6 million of the company’s own ETH holdings. CEO Sam Tabar acknowledged the disconnect, noting that operating results improved through the quarter while the stock’s valuation did not, and that the board is now evaluating options to close that gap.
Market reaction has been mixed. Hedge‑fund ownership increased from 19 funds to 25 in the most recent quarter, indicating growing institutional conviction. Short interest sits at 18.49 % of the float, a level that reflects heavy skepticism and enough crowding that any positive surprise could spark a sharp squeeze. As of September 9, the stock trades at a forward price‑to‑earnings ratio of 23.87, a multiple that assumes real earnings growth from here even as the company’s chief executive flags a valuation gap.
Bit Digital’s second‑quarter results portray a company in the midst of a strategic shift. It is funding a fast‑growing AI‑infrastructure business while quietly winding down a mining operation it no longer wants. WhiteFiber’s new contracts still need to convert into the promised $200 million of annualized revenue without straining the debt built to get there. ETH‑collateralized borrowing and non‑cash swings could keep the picture opaque as the board tries to convince the market the stock deserves a higher multiple. Rising hedge‑fund ownership suggests some investors are already positioning for a re‑rating.
The company will report its third‑quarter results in the coming weeks, and it has not yet disclosed any plans to adjust its debt or treasury strategy. Investors will be watching how quickly the new contracts generate revenue, whether the company can maintain its operating cash flow, and how the market reacts to the valuation gap that remains.
The uptick was driven by a 42 % jump in cloud‑services revenue, which rose to $23.8 million, and a 182 % surge in colocation income for the first half of the year. The company’s infrastructure division remains the primary engine of growth.
Contract liabilities—cash already received but not yet recognized as revenue—more than doubled to $143.1 million from $79.6 million at the end of 2025, backed by a backlog of roughly $1.0 billion. Since the last earnings call, WhiteFiber, Bit Digital’s AI‑infrastructure and high‑performance‑computing subsidiary, signed multi‑year cloud‑services agreements totaling over $540 million in aggregate contract value. Once fully deployed, the pipeline could generate more than $200 million in annualized revenue.
To fund WhiteFiber’s NC‑1 data‑center campus, the company did not sell Ethereum or issue new equity. Instead, it borrowed $50 million against a portion of its Ethereum holdings and used that liquidity to secure a credit facility of up to $150 million for WhiteFiber. The facility is guaranteed by WhiteFiber’s parent and reviewed by independent committees at both entities, allowing the firm to expand the data‑center while preserving its coins and ownership stake.
Operating cash flow for the first six months of the year rose 33 % to $46.8 million. In contrast, older mining operations are shrinking: digital‑asset mining revenue fell 58 % year‑over‑year for the first half of 2026, and the amount of bitcoin mined per quarter dropped from 48.1 to 32.3. Management said no meaningful capital will be invested in the segment going forward. Ethereum staking revenue also fell, from $2.3 million to $0.9 million in a single quarter, a decline attributed to repositioning coins into liquid staking and lower average ETH prices.
The accounting for the Ethereum treasury has grown more complex. Bit Digital recorded a $46 million non‑cash impairment on its liquid‑staked ETH holdings during the quarter, one of several non‑cash items that made up roughly $86 million of the $107.2 million net loss. Convertible notes rose to $336.2 million, and the new WhiteFiber facility adds up to $150 million more on top, collateralized in part by $105.6 million of the company’s own ETH holdings. CEO Sam Tabar acknowledged the disconnect, noting that operating results improved through the quarter while the stock’s valuation did not, and that the board is now evaluating options to close that gap.
Market reaction has been mixed. Hedge‑fund ownership increased from 19 funds to 25 in the most recent quarter, indicating growing institutional conviction. Short interest sits at 18.49 % of the float, a level that reflects heavy skepticism and enough crowding that any positive surprise could spark a sharp squeeze. As of September 9, the stock trades at a forward price‑to‑earnings ratio of 23.87, a multiple that assumes real earnings growth from here even as the company’s chief executive flags a valuation gap.
Bit Digital’s second‑quarter results portray a company in the midst of a strategic shift. It is funding a fast‑growing AI‑infrastructure business while quietly winding down a mining operation it no longer wants. WhiteFiber’s new contracts still need to convert into the promised $200 million of annualized revenue without straining the debt built to get there. ETH‑collateralized borrowing and non‑cash swings could keep the picture opaque as the board tries to convince the market the stock deserves a higher multiple. Rising hedge‑fund ownership suggests some investors are already positioning for a re‑rating.
The company will report its third‑quarter results in the coming weeks, and it has not yet disclosed any plans to adjust its debt or treasury strategy. Investors will be watching how quickly the new contracts generate revenue, whether the company can maintain its operating cash flow, and how the market reacts to the valuation gap that remains.
