Earnings call transcript: Bit Digital misses Q2 2025 earnings forecast

Bit Digital Inc. (BTBT) reported its Q2 2025 earnings, revealing a significant miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.07, surpassing the forecast of -$0.02, but this was overshadowed by a revenue shortfall, with actual revenue at $25.7 million compared to the anticipated $27.12 million. Following the earnings release, Bit Digital’s stock fell 7.84% to $3.19, reflecting investor disappointment. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 3.9, indicating robust liquidity. InvestingPro analysis reveals 10+ additional key insights about BTBT’s financial health and market position.

Key Takeaways

• Bit Digital’s Q2 revenue declined year-over-year, driven by a significant drop in digital asset mining revenue.
• The company is pivoting towards Ethereum, increasing its holdings significantly post-quarter.
• The stock price decreased by nearly 8% in reaction to the earnings miss.
• Bit Digital is exploring strategic alternatives for its Bitcoin mining business.

Company Performance

Bit Digital’s performance in Q2 2025 showed mixed results. The company experienced a decline in total revenue compared to the previous year, primarily due to a 59% drop in digital asset mining revenue. However, cloud services revenue increased by 33%, indicating a shift in the company’s operational focus. This strategic pivot is underscored by Bit Digital’s enhanced emphasis on Ethereum as a key asset.

Financial Highlights

• Revenue: $25.7 million, down from $29 million year-over-year.
• Earnings per share: $0.07, compared to a forecast of -$0.02.
• Digital Asset Mining Revenue: $6.6 million, down 59% YoY.
• Cloud Services Revenue: $16.6 million, up 33% YoY.
• Net Income: $14.9 million.

Earnings vs. Forecast

Bit Digital’s Q2 2025 earnings beat the EPS forecast of -$0.02, posting an actual EPS of $0.07. However, the revenue fell short of expectations, coming in at $25.7 million against a forecast of $27.12 million. This revenue miss represents a 5.24% shortfall, which is significant given the company’s recent financial trends.

Market Reaction

Following the earnings announcement, Bit Digital’s stock experienced a sharp decline of 7.84%, closing at $3.19. This drop reflects investor concerns over the company’s revenue miss and strategic direction. The stock’s movement places it closer to its 52-week low of $1.69, indicating cautious sentiment among investors. InvestingPro analysis indicates that BTBT’s stock generally trades with high price volatility, with a beta of 4.91. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. For deeper insights into market valuations, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

Outlook & Guidance

Looking ahead, Bit Digital is focused on scaling its Ethereum position and optimizing staking yields. The company aims to maintain a strong liquid balance sheet and is exploring non-dilutive capital raising options. Future guidance suggests a cautious outlook, with EPS forecasts for upcoming quarters showing modest improvement.

Executive Commentary

CEO Sam Tibar emphasized the company’s strategic shift, stating, "BitDigital is now finally in a position to scale as a pure play Ethereum treasury and staking company." He further noted, "We see ETH as a scarce productive treasury asset," highlighting the company’s commitment to Ethereum as a core component of its strategy.

Risks and Challenges

• Declining digital asset mining revenue poses a challenge to overall financial performance.
• The strategic shift towards Ethereum involves operational and market risks.
• Regulatory changes could impact the company’s business model and profitability.
• Market volatility in the cryptocurrency sector may affect revenue stability.
• The winding down of the Bitcoin mining business could lead to transitional challenges.

Q&A

During the earnings call, analysts inquired about the institutional acceptance of Ethereum staking and regulatory improvements for crypto. Executives also addressed questions regarding the company’s Bitcoin mining wind-down strategy and clarified the cost structure following the White Fiber separation.

Full transcript - Bit Digital Inc (BTBT) Q2 2025:

Conference Operator: Hello, and welcome to the Bit Digital Second Quarter twenty twenty five Earnings Conference Call. Good morning, good afternoon, and good evening, depending on where you’re joining us from. Thank you for being here. We’re just giving a few more moments for attendees to dial in, so thank you for your patience. While we wait, please note that during this call, all participant lines will be in a listen only mode.

Following the officers’ update, we will open the floor for a question and answer session. Also as a reminder, today’s conference is being recorded. I’ll now hand it over to your host, Cameron Schneer, Head of Investor Relations at BitDigital. Cameron, the floor is yours.

Cameron Schneer, Head of Investor Relations, Bit Digital: Thank you. Good morning, and welcome to the Bit Digital second quarter twenty twenty five earnings call. Joining us on the call today are Sam Tibar, Chief Executive Officer and Eric Wong, Chief Financial Officer. Before we begin, I would like to remind all participants that some of the statements we will be making today are forward looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements.

I therefore refer you to yesterday’s 10 Q filing and our other SEC filings. Our comments today may also include non GAAP financial measures. Additional details and reconciliation to the most directly comparable GAAP financial measures can be found in our 10 ks filing, which is on our website. After our prepared remarks, we’ll open the call up for questions. With that covered, I will turn the call over to Sam to discuss our performance.

Sam?

Sam Tibar, Chief Executive Officer, Bit Digital: Thank you, Kim. Ladies and gentlemen, thank you for joining us on the call today. The past few months have been busy for our team, to say the least. The word transformation is likely overused in earnings calls, but BitDigital has truly transformed since the end of the first quarter. In June, we announced our transition to an Ethereum treasury and staking platform.

Last week, we completed the IPO of White Fiber. Our former wholly owned subsidiary is now a standalone AI infrastructure company. These two steps reshape our business and our strategy. Our focus going simple going forward is simple. We want to build one of the largest institutional EAS balance sheets in the public markets and generate scalable staking yield for our shareholders.

We aim to do this through strategic and prudent capital allocation. Although White Fiber is now a stand alone public company, our ownership and retained rights currently require us to consolidate its results in our financials under U. S. GAAP. The portion we do not own will be shown as a noncontrolling interest.

That will remain the case unless and until our ownership or control falls below the threshold required for consolidation. We believe the white fiber IPO is the best way to unlock value for our shareholders. We have created two focused independent platforms. With the white fiber IPO behind us, we are now laser focused on making BitDigital the largest ETH treasury platform in the public markets. Yes.

You could call this a reboot. Fifth Digital is now finally in a position to scale as a pure play Ethereum treasury and staking company. Void fiber, meanwhile, has the flexibility to pursue its own growth strategy as a standalone AI infrastructure company. We believe that this separation gives both companies greater strategic clarity and more disciplined capital allocation. We currently own about 74.3% of white fiber, which would drop to around 71.5% if the green shoe is fully exercised.

Our shares are subject to a six month lockup following the IPO. Over time, we plan to fully unwind our position in a measured and opportunistic way. But we are in no rush. We are extremely excited by the future of White Fiber. We believe selling down our ownership prematurely would only hurt shareholder value for BTBT.

Our goal is to maximize long term value for shareholders of both companies. White Fiber remains a very valuable asset for our shareholders, But today’s call is focused on BitDigital’s core business. We will not be providing forward looking comments on White Fiber. For additional information on White Fiber, I encourage you to visit WhiteFiber’s website and SEC filings. During the second quarter, we launched our plan to become a dedicated Ethereum holding and yield generation platform.

As of the June, we held approximately 3,663. After the quarter closed, we increased that to about a 121,000 ETH as of August 11. This was funded in part by our recent equity offerings and by the sale of Bitcoin. Converting our Bitcoin into ETH has been a great trade so far. We earned approximately 166.8 ETH in staking rewards during the quarter.

At quarter end, around 21,568 ETH were actively staked. The annualized effective yield was approximately 3.1%. As of August 11, we had approximately a 105,000 ETH staked. This transition represents a structural pivot. Our goal is to build the largest institutional ETH balance sheets in the public markets.

We want to generate scalable staking yield for shareholders. This isn’t a a trend we’re chasing. We’ve owned ETH since 2021. We held it through multiple market cycles earlier than any other ETH treasury company. We started converting our Bitcoin into ETH at a time when miners thought that was sacrilegious.

Turns out, it wasn’t heresy. It was foresight. We had conviction in the long term potential of Yves. That conviction has only grown. We believe the value of Yves is still in the very early innings from an from an awareness standpoint.

Now turning to Bitcoin mining. In June, we announced that we are exploring strategic alternatives for our Bitcoin mining business. We are open to either selling the business or winding it down. Basically, if we don’t sell, we’ll run the fleet until units become unprofitable or hosting contracts expire. We will look for mutually beneficial outcomes as we work with our hosting partners.

To be very clear, we will not invest in additional mining units. Simply put, we believe EAS will deliver better long term returns than mining. Yes. You heard that right. We produced 68 bitcoins in the second quarter, down from 83 bitcoins in Q1.

Mining revenue declined to $6,600,000 but gross margins remained positive despite lower production and a weaker hash price. As of quarter end, our active hash rate was about 1.2 exahash, reflecting curtailments. Since then, we’ve deployed 2,130 S21 minuteers and expect to deploy another fourteen forty five later this month. As an important note, those units were purchased earlier this year. These newer machines combined with the gradual retirement of older models are expected to improve bleed efficiency to below 22 joules per terahash as the business winds down.

With that overview, I will turn it over to Eric to walk through the financials.

Eric Wong, Chief Financial Officer, Bit Digital: Thank you, Sam. Total revenue for the second quarter was $25,700,000 That compares to $29,000,000 in the same quarter last year and 21 sorry. 25,100,000.0 in the first quarter. Digital asset mining revenue was $6,600,000, down 59% year over year due to the April 2024 happening, higher network difficulty, and a lower active hash rate. Cloud services revenue was $16,600,000, up 33% compared to the prior year quarter.

The increase was driven by the commencement of new customer contracts. Collocation services contributed $1,700,000 compared to none in the same period last year as the business was launched in late twenty twenty four. Ethereum staking revenue was $400,000, down about 2% year over year as higher staking rewards were offset by a lower realized Ethereum price during the quarter. Cost of revenue, excluding depreciation, was approximately $13,200,000 compared to $15,200,000 a year ago and $12,800,000 in Q1. Gross profit was approximately $12,500,000 for a total gross margin of about 49%, up 80 basis points from the prior year quarter.

G and A for the second quarter was $19,700,000 compared to $5,500,000 during the same quarter last year. Second quarter g and a included approximately $5,500,000 in stock based awards tied to milestone achievements related to our 2024 acquisition of Innoven as well as certain consulting and legal related expenses, which we expect to be nonrecurring. The stand alone BitDigital cost structure is expected to be significantly less than our consolidated GNA with YFibre. Net income for the quarter was $14,900,000 or 7¢ per diluted share versus a net loss of 12,000,000 in the same year quarter. Adjusted EBITDA was $27,800,000 compared to negative $3,800,000 a year ago.

This includes a $27,200,000 gain on digital assets. On the balance sheet, as of June 30, we held a $181,200,000 in cash and cash equivalents. Total digital assets were $91,200,000 consisting of Ethereum and approximately 280 Bitcoin. Subsequent to quarter end, we sold our Bitcoin position and used the proceeds to acquire Ethereum. Including USDC, total liquidity was approximately $273,000,000 as of June 30.

We remain debt free. During the quarter, the company signed a 60,000,000 Canadian dollars credit facility with the Royal Bank of Canada. However, the facility transferred to YFiber following the IPO. CapEx for the quarter was approximately $82,000,000 primarily related to legacy HPC commitments for the YFiber business, including the purchase of North Carolina one data center sites, infrastructure development, and GPU procurements. I will now hand the line back to Sam.

Sam Tibar, Chief Executive Officer, Bit Digital: Thank you, Eric. The second quarter marked the start of BitDigital’s next chapter as a focused Ethereum treasury and staking company. We believe ETH is the most compelling long term digital asset. It empowers a global computer network. It enables the tokenization of assets, decentralized finance, and real world applications.

It is programmable, productive, and deflationary. The ETH ecosystem continues to flourish. It has the most active developer base. Major institutions like Coinbase, PayPal, and BlackRock are building on it. We believe Ethereum is becoming the financial infrastructure layer of the Internet.

Regulatory clarity has also improved. The Genius Act was signed into law last month, creating a stablecoin framework that strengthens Ethereum’s role in digital payments. The Clarity Act, which affirms ETH as a digital commodity, is moving through the Senate. Together, these are meaningful steps toward broader institutional adoption. In plain English, the rules are catching up to the reality.

We see ETH as a scarce productive treasury asset. It earns yield. We believe that it is set to capture more value as activity migrates on chain. Priorities are to scale our ETH position, optimize staking yield, and maintain a strong liquid balance sheet. Our goal isn’t just to buy ETH.

It is to grow long term value per share. That means expanding our position at a measured pace, deploying capital when the value proposition is compelling and issuing shares at prices we view as a premium to our net asset value. While we do not have a buyback program in place, we would be open to considering one in the future should our shares trade at a meaningful discount even even if that required reallocating ETH Holdings. We are also differentiated by our substantial ownership stake in White Fiber, a valuable public company in its own right. Over time, that stake provides a unique source of strategic flexibility that could be monetized if appropriate to grow our EAT position in a nondilutive way.

We intend to follow Michael Sellers playbook with the goal of driving our share price to a meaningful premium to NAV over time. Accordingly, we are exploring capital market alternatives to raise further capital to purchase additional ETH in a non dilutive fashion. It’s worth noting that our June 2020 ’5 issuance, priced at $2 per share, subsequently traded materially higher and remains at a substantial premium to that share price. Looking ahead, we expect to continue scaling our ETH position through operational cash flow, opportunistic market access, and, when appropriate, other sources of capital that align with shareholder interests. To support that flexibility, we have included a proposal in our upcoming proxy to increase our authorized share count.

This isn’t tied to any immediate financing plan. It is about ensuring that we have the tools to execute our ETH treasury strategy in a disciplined and shareholder aligned way. We ask that you vote and return your proxy card. BitDigital is built to be more than an ETH holder. We are a platform for compounding value through yield, strategic capital allocation and the flexibility of our white fiber ownership.

We believe these advantages position us uniquely to deliver sustained growth in value per share over the long term. With that, we’ll open the line for questions. And as a reminder, we will not be answering questions related to the White Fiber business beyond what has already been disclosed. Operator?

Conference Operator: Thank you. If you would like to signal with questions, please press star one on your touch tone telephone. If you’re joining us today using a speakerphone, please make sure mute function is turned off to allow your signal to reach our equipment.

: And

Conference Operator: the first question will come from Ryan Dobson with Clear Street.

Ryan Dobson, Analyst, Clear Street: Hi. Thanks very much. Good morning, and thanks for thanks for taking my question. So there’s certainly been a lot of growth in the treasury business model, and and Bitcoin treasury models like strategy are getting a lot of the headlines. But Ethereum staking can generate real returns, for investors.

You know, do you

Nick Giles, Analyst, B. Riley Securities: think you could speak to

Ryan Dobson, Analyst, Clear Street: the growing acceptance of Ethereum staking among institutional investors and and how you see this business model developing over time.

Sam Tibar, Chief Executive Officer, Bit Digital: Sure. I mean, there are so many ways to answer that question. We we first of all, we think it’s a pretty smart move to accumulate ETH, and we’re seeing we’re glad to see other companies leaning into that strategy. You know, the more companies that lean into that strategy, the more that Ethereum goes up, so we’re pretty happy about that. We don’t see that as pure competition.

It’s more of a cooperation competition hybrid. Broader adoption for us helps validate the asset. It benefits everyone who’s already participating. We’ve been staking ETH for a long time, and we’re not just holding it. We’ve been actively staking ETH for years now and generating yield.

Our strategy is about compounding value with a productive treasury, as you mentioned, not just a not just building a static ETH position. It’s also probably worth reminding that we do own a large skeleton large stake in white fiber, and that stake gives us a unique potential source of nondilutive capital that we may use to grow our ETH holdings over time. So we are very much in a unique position. We’ve been talking about Ethereum and how that is a productive treasury asset compared to Bitcoin because it has this yield. It’s worth noting that ETFs I’m not sure if ETFs even have the ability, although they’re talking about it, to capture yield.

That’s one of the reasons why these ETH treasury plays are popular because people can get staking economics by buying an ETH treasury public company. That’s something that you really couldn’t do in the past. I hope that answers some of your question.

Ryan Dobson, Analyst, Clear Street: Yeah. It certainly does. Thank you so much for the for the details.

Sam Tibar, Chief Executive Officer, Bit Digital: Thanks for the question.

Conference Operator: And the next question will come from Joe Gong with NOBLE Capital.

: Thank you. Good morning.

Sam Tibar, Chief Executive Officer, Bit Digital: Hi, Joe.

: Can you hear me?

Sam Tibar, Chief Executive Officer, Bit Digital: Yes. I can hear you.

: Just wanted to clear something up first. Eric, I’m not quite sure I I heard, but I just wanna make sure. On the g and a, I did see that, you know, the professional consulting fees, you know, were significantly increased and the same with the share comp, which drove overall g and a, you know, up to the 19.7 from 8.2 in the first quarter. Did you say that those consulting and the share comp are gonna go back to a more normalized level so that g and a going forward would be back to, let’s call, that 8 to 10,000,000, or we’re gonna be at at a higher level going forward?

Sam Tibar, Chief Executive Officer, Bit Digital: Eric, do

Eric Wong, Chief Financial Officer, Bit Digital: you mind?

Sam Tibar, Chief Executive Officer, Bit Digital: Go go ahead, Eric.

Eric Wong, Chief Financial Officer, Bit Digital: Yes. We do see this as a onetime. You know, a a big part is related to our the acquisition of Innovium as a milestone of of the team. That’s, you know, $5,500,000. And some other, you know, consulting fees are related to, you know, the IPO expenses.

Those are all, you know, gonna be related to white fiber. So going forward, you’ll see, you know, BitDigital itself, the GNI will chop substantially.

Sam Tibar, Chief Executive Officer, Bit Digital: Yeah. I’d love to add to that. So, you know, in terms of the question of, you know, going go forward cost structure and what that will look like now that white fiber is separate, to Eric’s point, the stand alone bit digital cost structure will be significantly leaner than what you see in our consolidated results. Most of the CapEx and G and A associated with white fiber will no longer apply. So we’ll be operating with a much simpler much simpler footprint, fewer business lines, fewer people, and much lower infrastructure spend.

The simplicity is part of what makes the East Treasury strategy scalable. And going forward, we expect corporate expenses to trend down and ETH staking margins to play a larger role in our profitability. Second quarter g and a also features featured a material amount of onetime and nonrecurring items to Eric’s point. So the cost structure is less than a figure derived from simply allocating part of the GNA toy fiber and part to BTBT.

: Okay. I mean, I will just make the the comment. I’m I’m not quite understanding, Sam, why you you don’t wanna talk about life I mean, you guys still own 70% of it. The numbers aren’t gonna be consolidated. It’s a big part of the value equation here in the story.

And to just say you guys not gonna talk about it, it it doesn’t make a whole lot of sense to me. So I’m just throwing that out there, but thank you for your answer on the GNA.

Sam Tibar, Chief Executive Officer, Bit Digital: Well, let’s let’s let’s just let me comment on your comment. White White Fiber is its own operating company, and that was that was the point of the IPO. And so we’re gonna we have to treat it somewhat separately on a separate call and separate website and separate team. I can say that we currently own you’re right. We do own approximately 71.5 to 74.3% of white fiber depending on the underwriter options, and those shares are subject to a six month lockup.

I can say that we view that stake as strategic as a strategic and financial asset for BitDigital. I could say that over time, we intend to unwind that position in a very measured and opportunistic way. That would mean monetizing shares when it makes sense, either to reinvest in our e strategy or return value to shareholders. We’re not committing to a specific timeline, but we we do see the full separation as the long term path going forward. But if there are some questions, we we will, you know, in the future, hold a similar similar format for white fiber.

If we made this call about white fiber and not the digital, it would be very confusing, and it would sort of defeat the purpose, I think, of keeping the companies separate. Because an eTreasury play and a digital infrastructure play are just very different narratives, different audiences, different stories, and different operations. And that was the one of the main reasons to to have this IPO. So I think white fiber deserves its own format, its own call, and and so on. So I hope you understand.

: I do. Thanks.

Conference Operator: And the next question will come from Nick Giles with B. Riley Securities.

Nick Giles, Analyst, B. Riley Securities: Hey. Great. Thank you, operator. Good morning, everyone. Just to follow-up, I mean, you know, beyond ETH purchases, what are some of the other ways that you can support the overall Ethereum ecosystem?

You know, are there are there any partnerships you could consider? And, you know, really, just as we see increased competition in the treasury strategy landscape,

Sam Tibar, Chief Executive Officer, Bit Digital: you know, how do

Nick Giles, Analyst, B. Riley Securities: you plan to market this platform and its overall contribution? Thank you very much.

Sam Tibar, Chief Executive Officer, Bit Digital: Yeah. I think we’ve been a little bit hamstrung on the marketing of the ETH treasury play because we were under the mandated quiet period when we’re going through the process of the WideFiber IPO. That is finally slowly receding. And and when I mentioned that there’s a reboot for our ETH treasury play, I meant it. So now that the IPO is behind us, you’ll be seeing us on the circuit much more often and catching up on mindshare.

We were the first ones to do this compared to any any other ETH treasury play out there, and so we have the ability and the appetite to to catch up on on Mindshare, and we’re we’re already doing that. We have plans on that. But but you’re right. Part of the competition is to own the narrative. And right now, there’s, you know, there’s a few companies out there, and then we’re all competing on on mindshare.

And, of course, at the same time, you’ve gotta buy a lot of a lot of ETH. We have plans to buy a lot of ETH, and we have plans to capture mindshare. And it’s something that we’ll be executing on for sure. But, you know, there is some catching up to do because of this IPO. Frankly, trust me, the IPO was a very heavy lift, not to mention the mandated quiet period that we had to be on.

It was it was frustrating to have metaphoric duct tape in my mouth and not being able to talk about Ethereum and our treasury play, but but that’s finally that chapter in that era is finally behind us.

Nick Giles, Analyst, B. Riley Securities: K. I appreciate that color and the background. My next question would just be, you know, you touched on the Genius Act, which has obviously been transformational for the space. I mean, where do you think the regulatory framework could or or should go from here?

Sam Tibar, Chief Executive Officer, Bit Digital: Well, I think the regulatory framework would certainly be in favor of of all things crypto. As a reminder, there was an era where Gary Gensler was the chairman of the SEC. That era is finally behind us. We have a very friendly SEC towards crypto. Almost every other day, there is a a positive statement or rule interpretation that is very friendly towards this new technology.

So we’re really happy to see that. At the congressional level, we’re seeing, like you mentioned, the Genius Act and the Clarity Act that is obviously, excuse me, very, very you know, offers a lot of clarity and rules where these rules and and clarity just wasn’t there in the past. In the past, during chairman Gary Gensler’s era, there were no rules. And if you did anything, these poor programmers that were building on the Ethereum ecosystem would be you know, it was regulatory warfare. And, you know, I had friends who just weren’t sure if they should build on Ethereum because they didn’t wanna go to jail because they had no idea what the rules are.

That’s a very different era today. And we’ve only started this era just about seven months ago. So, you know, we have a long way to go, and people are also beginning to understand the value of Ethereum, why Ethereum has a lot of technical prowess over the mother coin, which is Bitcoin. It has smart contracts. It can rewrite the entire financial system.

We’re seeing institutions like JPMorgan even leaning in on the Ethereum ecosystem because it has absolute value, especially if it wants to wants to rebuild in a more or rather less frictionless way for its infrastructure, its back office, and middle office. I can’t imagine the front office is wanting to embrace Ethereum because that’s a bit existential for them, but they’re gonna start with the back office and how Ethereum can replace that. So it’s a very great time with respect to the Clarity Act sorry, the Genius Act that provided a lot of rules on sorry, a lot of clarity on rules for stablecoins, and it it accepts stablecoins as a formal payment processor. And so you’re gonna see a lot of issuers build their own stablecoins. PayPal has already done it.

You’re gonna see other issuers and other companies have their own stablecoins. And remember, more than 50% of stablecoins are built on Ethereum. That is a blue chip ecosystem, and people are beginning to realize that and wake up to that. And, you know, I I I’m very bullish on on Bitcoin. I think Bitcoin is its main competitor are the gold markets.

Gold is a simple store value, and Bitcoin is a simple store value. But frankly, if Bitcoin and Ethereum look. Bitcoin had a first mover advantage. If Bitcoin and Ethereum were invented on the first day, I don’t think people would be talking about Bitcoin. It’s just not the technology that Ethereum has.

So that is why you’re seeing a lot of success right now in each each treasury place. There’s yield. There’s fundamental value. There’s technology. It’s programmable, and it could rewrite the entire financial system.

Bitcoin can’t. Bitcoin is simply an answer to gold.

Nick Giles, Analyst, B. Riley Securities: Tim, I really appreciate your perspective. So continue best of luck.

Sam Tibar, Chief Executive Officer, Bit Digital: Thank you. I mean, the markets I don’t think I needed the luck because the markets are speaking for themselves right now. And, you know, selling our Bitcoin on our balance sheet and buying Ethereum was a great trade.

Conference Operator: We’ll take our next oh, question for thank you. We’ll take our next question from a participant from H. C. Wainwright. And, caller, please provide your name as well.

Thank you.

Eric Wong, Chief Financial Officer, Bit Digital: Oh.

Kevin, Analyst, H.C. Wainwright: Hi, Sam. It’s Kevin.

Eric Wong, Chief Financial Officer, Bit Digital: Hey, Kevin. Long time.

Kevin, Analyst, H.C. Wainwright: Yeah. Can you hear me okay? Great. Hi, Eric. Sam.

Thanks. Thanks for thanks for letting me hop on here. You know, I I was hoping you wouldn’t mind talking a little bit more, Sam, please, about your Bitcoin mining thinking. Understand your, you know, 1.2 extra hash with about 700 petahash coming in, I guess, through July and future s twenty one deployments. I’m just wondering if you could give us a hint on how the fleet has aged and how you might see tapering tapering what you have, legacy machines off as those come on, and what you might recommend we consider in BitDigital’s Bitcoin hash, at least for the near term, understanding full well it’s not a long term strategic initiative?

Sam Tibar, Chief Executive Officer, Bit Digital: Yeah. I mean, look. That’s right. We’re in the process of winding down our Bitcoin mining business as part of our strategic shift towards Ethereum. We’re no longer investing in new machines.

And over time, we do expect our active hash rate and revenue to decline as hosting contracts expire and older machines become unprofitable. To your point, we’ve recently deployed a batch of efficient s 21 plus units that will help maintain positive margins while we while we wind down. Our strategy is to continue operating the fleet as long as it remains profitable on a on a unit by unit basis. As mentioned, if there’s a chance to sell the business, we’d be happy to evaluate that. But absent that, the plan is just to let the business sunset in a way that maximizes cash flow and minimizes disruption.

I think you talked about the current fleet efficiency and how that’s trending as of the June. Our fleet efficiency has been was approximately 25.1 joules per terahash. That’s improved since quarter end. We’ve also deployed, as mentioned, 2,130 s 21 plus miners and expect to deploy another 1,445 in the next coming weeks. Once those are online, we expect fleet efficiency to improve to around 23.3 joules per per hash.

I apologize. And as mentioned, as you could all as you can guess over time as older models roll off, we anticipate fleet efficiency to fall in the range of 17.5 to 23.5 joules per terahash. And, look, you know, we do expect total fleet hash rate to to decline gradually as we wind down the mining business and retire older units. In the short term, the s 21 plus deployments will add around 370 17 pentahash of capacity, so to the 1.6 to 1.8 range. But as older contracts expire and we transition toward only running the most efficient fleets, in other words, the s 20 and the s 19 k pros, the total hash rate will decline while margins should improve.

And I I don’t know. I’m not sure if you’re asking us whether continuing in mining equipment is you know, should we continue investing in mining equipment even though our margins are still positive? You know, we just think that the capital allocation is just juicier if we allocate if we reallocate everything towards our ETH treasury play.

Kevin, Analyst, H.C. Wainwright: Yeah. No. No. That that that point resonated clearly, Sam. No question there.

It’s just appreciate the help on how you see, you know, the the hash rate trending. So if you get arms around it in the model. You you also mentioned, you know, reducing infrastructure, personnel, and I was wondering if you wouldn’t mind sort of walking through head count. Maybe we could kinda get our arms around where SG and A would sort of bottom out.

Sam Tibar, Chief Executive Officer, Bit Digital: Yeah. Absolutely. I mean, the G and A is certainly gonna be much less than on a going forward basis because most of the G and A was focused on white fiber. In terms of headcount, I think Eric has a more granular

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