About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Bit Digital (BTBT) Q1 2025 Earnings Call May 16, 2025 10:00 AM ET Company Participants Cameron Schnier - Head of Investor RelationsSamir Tabar - Chief Executive OfficerErke Huang - CFO & DirectorBenjamin Lamson - Head of RevenueBilly Krassakopoulos - CEOMike Grondahl - Head of Equities & Director of Research Conference Call Participants George Sutton - Partner & Senior Research AnalystBrian Dobson - Managing Director & Senior Research AnalystNick Giles - Senior Research AnalystJoe Gomes - Senior Generalist ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $25.1 million, a 17% decrease year over year and slightly below the $26.1 million reported in Q4 2024 [19] - Bitcoin mining revenue was $7.8 million, down 64% year over year and 26% sequentially, reflecting the impact of the April 2024 halving event and increased network difficulty [20] - Cloud services revenue increased 84% year over year and 14% sequentially to $14.8 million, supported by new contracts [20] - Gross profit was $12.3 million, representing a total gross margin of 49%, compared to 47% in the same quarter last year [21] - Adjusted EBITDA was negative $44.5 million, primarily due to a $49.2 million mark to market loss on digital asset holdings [23] - GAAP net loss per share was $0.32, compared to earnings of $0.43 per share in Q1 2024 [24] Business Line Data and Key Metrics Changes - Mining segment revenue decreased 64% year over year and 26% sequentially, with production declining 80% year over year to 83 bitcoins [5][20] - Cloud services gross margin expanded to 59% from 52% in the previous quarter, reflecting improved utilization and scale [21] - Colocation services gross margin improved modestly to 67% [21] Market Data and Key Metrics Changes - Active Hash rate stood at approximately 1.5 exahash, with fleet efficiency at approximately 24.5 joules per terahash [6] - The market value of digital asset positions appreciated on a mark to market basis, with Bitcoin and Ethereum prices increasing by 25% and 40% respectively since the quarter end [24] Company Strategy and Development Direction - The company is focused on investing in data center build-out and cloud services, with a strategy to secure multiyear contracts with creditworthy counterparties [11][12] - The company aims to pursue nondilutive financing structures to support the expansion of its HPC platform [26] - The acquisition of a 95-acre property in North Carolina is intended for data center development, with a robust pipeline of over 500 megawatts of potential capacity under evaluation [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the mining segment due to market conditions but expressed confidence in the growth of cloud services and colocation segments [5][19] - The company remains optimistic about securing large contracts with annualized revenue potential above $100 million [11] - Management emphasized the importance of maintaining a strong liquidity position to build trust with customers and execute growth strategies [28] Other Important Information - The company raised approximately $10 million through its ATM program during the first quarter and an additional $48 million subsequent to the quarter end [27] - The company sold approximately $32 million worth of Bitcoin holdings during the quarter to help fund growth [28] Q&A Session Summary Question: Update on white fiber rebranding and platform initiatives - The rebrand has been well received, with positive feedback on the new website and upcoming first-to-market technology announcements expected soon [32][33] Question: Demand from hyperscalers and enterprise users - Strong demand is observed from hyperscalers and medium-sized NeoClouds for capacity, with updates expected in the coming months [40] Question: Reason for customer contract start date shift - The shift in start date was due to internal product development schedule changes, and the company is prepared to utilize the GPUs for other contracts if necessary [44][47] Question: Expansion in the US versus Canada - The company is evaluating over 500 megawatts of potential capacity across both Canada and the US, focusing on retrofitting existing sites for efficiency [52][54] Question: Balancing equity issuance and liquidating investments - The company maintains flexibility with its ATM program while balancing equity issuance with selling digital assets to fund growth responsibly [60][62] Question: Gross margin profile changes and GPU procurement strategy - The company aims to increase margins by spreading operating lease costs over a larger revenue base and continues to minimize speculative procurement risks [71][78]

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分组1 - Bit Digital, Inc. reported a quarterly loss of $0.05 per share, aligning with the Zacks Consensus Estimate, compared to earnings of $0.03 per share a year ago [1] - The company posted revenues of $25.11 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.22%, and down from $30.29 million year-over-year [2] - Bit Digital shares have declined approximately 27% since the beginning of the year, while the S&P 500 has gained 0.2% [3] 分组2 - The earnings outlook for Bit Digital is mixed, with the current consensus EPS estimate at -$0.02 on revenues of $35.46 million for the coming quarter, and -$0.04 on revenues of $158.34 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 20% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]

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Acquisitions and Expansions - The company acquired Enovum Data Centers Corp on October 11, 2024, which includes a fully operational 4 MW Tier-3 data center hosting over 5,000 GPUs for 14 customers[234]. - A new 5 MW Tier-3 data center expansion project (MTL-2) near Montreal was acquired for CAD $33.5 million (approximately USD $23.3 million), with an expected investment of USD $19.3 million to meet Tier-3 standards, operational by Q3 2025[235]. - A lease for a new data center site (MTL-3) in Saint-Jerome, Quebec, was executed with a 20-year term and development costs expected to total approximately USD $40 million, targeting completion by late Q3 2025[237]. Agreements and Contracts - The company entered a five-year colocation agreement with Cerebras Systems to provide 5 MW of data center infrastructure, expected to be fulfilled at MTL-3 or another site[236]. - The company signed a binding term sheet with a customer for 2,048 GPUs, targeting total revenue of approximately $150 million over three years, or about $50 million annually[242]. - A Master Services and Lease Agreement was finalized for 2,048 GPUs, with an estimated total contract value exceeding $50 million in annualized revenue[243]. - A new agreement was entered to supply an additional 464 GPUs for $15 million of annualized revenue, with a deferred start date until August 20, 2025[245]. - A Master Service Agreement with Boosteroid Inc. was executed for 489 GPUs, projected to generate approximately $7.9 million in contracted value, with potential expansion up to 50,000 servers worth approximately $700 million[246]. - The Company finalized a service agreement to supply cloud services worth more than $50 million in annualized revenues, with an initial contract for 2,048 GPUs[371]. - A Master Services Agreement with DNA Fund includes a minimum purchase commitment of 32 GPUs and a total of 576 H200 GPUs over a 25-month period, representing an aggregate revenue opportunity of approximately $20.2 million[375]. Mining Operations - The company commenced its bitcoin mining operations in February 2020 and has focused on accumulating digital assets for potential sale or exchange[257]. - The company has chosen to acquire miners on the spot market to mitigate long delivery lead times, aiming to mine bitcoins quickly given their fixed supply[258]. - The company deployed an additional 1,441 miners during Q1 2025, resulting in an active hash rate of approximately 1.5 EH/s[264]. - The total contracted hosting capacity with Coinmint increased to approximately 46 MW as of January 2024[270]. - The company entered into a Master Mining Services Agreement with Blockbreakers for 4 MW of additional mining capacity, bringing total contracted capacity with them to approximately 9 MW[266]. - The company has secured a strategic co-location agreement with Soluna Computing for up to 6.6 MW, with a profit share of 35%[280]. - The company has a co-mining agreement with Digihost, providing approximately 6.0 MW of capacity, with Digihost entitled to 30% of the net profit[273]. - The company has a loan agreement with GreenBlocks for up to $5 million to finance miners with a capacity of 8.25 MW in Iceland[274]. - The company has a total contracted hosting capacity with Soluna of approximately 17.6 MW as of March 31, 2025[281]. - The company has entered into hosting agreements with A.R.T. Digital Holdings for a total capacity of 19 MW, with profit shares ranging from 19.75% to 40%[283]. Financial Performance - For the three months ended March 31, 2025, the company recognized revenue of $7.8 million from bitcoin mining services, a decrease of $14.1 million or 64.5% compared to $21.9 million for the same period in 2024[294][303]. - Cloud services revenue increased by $6.8 million, or 83.9%, to $14.8 million for the three months ended March 31, 2025, compared to $8.1 million for the same period in 2024[296]. - The company generated $1.6 million in revenue from colocation services for the three months ended March 31, 2025, compared to $0 for the same period in 2024[299]. - The net loss for the three months ended March 31, 2025, was $57.7 million, compared to a net income of $50.1 million for the same period in 2024, reflecting a variance of $107.8 million[294]. - The company reported a net loss of $57.7 million for the three months ended March 31, 2025, a change of $107.8 million from a net income of $50.1 million in the same period of 2024[334]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(44.5) million, compared to $58.5 million for the same period in 2024, indicating a significant decline in operational performance[361]. - The company incurred a loss of $49.2 million on digital assets for the three months ended March 31, 2025, compared to a gain of $45.7 million in the same period of 2024[331]. Asset Management - The company's total assets decreased by $52,999,090 to $485,248,574 as of March 31, 2025, compared to $538,247,664 as of December 31, 2024[336]. - The company's cash and cash equivalents decreased by $37,646,324 to $57,555,011 as of March 31, 2025, compared to $95,201,335 as of December 31, 2024[336]. - The balance of accounts receivable decreased to $2.5 million as of March 31, 2025, down from $5.3 million as of December 31, 2024, attributed to paid invoices from customers[339]. - The balance of digital assets decreased by $82.3 million to $XX million as of March 31, 2025, primarily due to exchanges of bitcoins into cash and USDC, and a change in fair value of $49.2 million[342]. - The current and non-current portion of deferred revenue decreased to $21.2 million and $0.1 million, respectively, as of March 31, 2025, down from $30.8 million and $0.1 million as of December 31, 2024, reflecting a recognition of $11.1 million in revenue[355]. - Working capital decreased to $139.8 million as of March 31, 2025, from $241.8 million as of December 31, 2024, reflecting a reduction in liquidity[362]. Operational Changes and Future Outlook - The company anticipates long-term operational improvements despite potential short-term decreases in mining output due to strategic changes in hosting partnerships[261]. - The ability to generate revenue from digital asset production is subject to various risks, including regulatory and market volatility[377]. - The company may need to raise additional capital to fund operations and pursue its business strategy, which could involve risks and uncertainties[376][377]. - The company expects to continue to opportunistically invest in miners to increase its hash rate capacity[304]. Ethereum Operations - The company initiated Ethereum staking operations in the fourth quarter of 2022 and has since transitioned to partnerships with various service providers for staking activities[289][306]. - The company has ceased all liquid staking activities as of the first quarter of 2024, reclaiming all staked Ethereum[308]. - For the three months ended March 31, 2025, the company earned 211.0 ETH in native staking, resulting in revenues of $560,641, an increase of $239,398 or 74.5% from $321,243 in the same period of 2024[310][312]. - The company's revenues from ETH liquid staking decreased by $4,503, or 100%, to $nil due to the termination of liquid staking activities in the first quarter of 2024[313]. - The cost of revenue from the ETH staking business increased by $16,135, or 98%, driven by an increase in staked ETH from 3,008 ETH to 21,568 ETH[326].

Company Performance - Bit Digital, Inc. (BTBT) closed at $2.08, showing no change from the previous day, while outperforming the S&P 500's daily loss of 0.07% [1] - The company's shares increased by 20.23% over the past month, surpassing the Business Services sector's gain of 16.17% and the S&P 500's gain of 13.74% [1] Upcoming Earnings - The upcoming earnings report for Bit Digital, Inc. is scheduled for May 15, 2025, with an expected EPS of -$0.05, reflecting a 266.67% decline compared to the same quarter last year [2] - Revenue is projected at $26.21 million, indicating a 13.46% decrease from the same quarter last year [2] Full Year Estimates - For the full year, analysts expect earnings of -$0.04 per share and revenue of $158.34 million, representing changes of +85.71% and +46.54% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Bit Digital, Inc. are important for investors, as positive revisions can indicate a favorable business outlook [4] - The Zacks Rank system, which reflects these estimate changes, provides actionable insights for investors [5] Zacks Rank and Industry Performance - Bit Digital, Inc. currently holds a Zacks Rank of 3 (Hold), with a recent consensus EPS projection moving 100% lower [6] - The Technology Services industry, part of the Business Services sector, ranks in the top 26% of all industries, indicating strong performance potential [7]

Core Viewpoint - Bit Digital, Inc. is set to release its First Quarter 2025 results on May 15, 2025, with a follow-up conference call on May 16, 2025, to discuss the results [1][2]. Company Overview - Bit Digital, Inc. operates as a global platform for high-performance computing (HPC) infrastructure and digital asset production, headquartered in New York City [3]. - The company's HPC business functions under the WhiteFiber Inc. brand, with operations located in the US, Canada, and Iceland [3]. Upcoming Events - The earnings call will be accessible via a live webcast and conference call, scheduled for May 16, 2025, at 10:00 a.m. ET [1][2]. - A press release detailing the First Quarter 2025 earnings will be issued prior to the conference call and made available on the company's website [2].

Company Performance - Bit Digital, Inc. (BTBT) closed at $2.11, reflecting a +1.93% change from the previous session, outperforming the S&P 500's gain of 1.47% [1] - The stock has increased by 5.08% over the past month, contrasting with the Business Services sector's decline of 1.38% and the S&P 500's loss of 0.47% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of -$0.05, a decline of 266.67% from the same quarter last year [2] - Revenue is forecasted to be $26.21 million, indicating a 13.46% decrease compared to the prior year [2] - Full-year estimates predict earnings of -$0.04 per share and revenue of $158.34 million, representing year-over-year increases of +85.71% and +46.54%, respectively [3] Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Bit Digital, Inc. are crucial as they reflect changing business trends, with positive revisions indicating a favorable outlook [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Bit Digital, Inc. at 3 (Hold), following a 100% fall in the Zacks Consensus EPS estimate over the past month [6] Industry Context - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 82, placing it in the top 34% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]