Bit Digital (BTBT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $25.1 million, down 17% year-over-year, mainly due to a sharp decline in digital asset mining revenue after the April 2024 halving, partially offset by strong growth in cloud and new colocation services.

• Cloud services revenue surged 84% to $14.8 million, while digital asset mining revenue fell 64-65% to $7.8 million; colocation services contributed $1.6 million following the Enovum acquisition.

• Adjusted EBITDA was negative $44.5 million, down from positive $58.5 million in Q1 2024, mainly due to a $49.2 million mark-to-market loss on digital assets.

• The company expanded its HPC and AI infrastructure, secured major new contracts, and continued to invest in data center capacity.

• Net loss for Q1 2025 was $57.7 million, compared to net income of $50.1 million in Q1 2024, primarily due to digital asset price declines.

Financial highlights

• Total revenue: $25.1 million, down 17% year-over-year and slightly below Q4 2024.

• Bitcoin mining revenue: $7.8 million, down 64% year-over-year and 26% sequentially.

• Cloud services revenue: $14.8 million, up 84% year-over-year and 14% sequentially.

• Colocation revenue: $1.6 million, up from $1.4 million in Q4, contributed by Enovum acquisition.

• Gross profit: $12.3 million, gross margin 49% (up from 47% last year and 40% in Q4).

• GAAP net loss per share: $0.32, compared to earnings of $0.43 per share in Q1 2024.

• Cash and equivalents: $57.6 million as of March 31, 2025; total liquidity (including digital assets and USDC): $141 million.

Outlook and guidance

• Management expects sequential revenue growth in Q2 and continued growth in Q3 2025 for cloud services.

• New and expanded cloud services agreements, including with DNA Fund and Boosteroid, are expected to drive over $20.9 million in annualized revenue.

• Data center development pipeline includes over 500 MW of potential capacity across North America, with new sites in North Carolina and Québec.

• Anticipates hash rate to rebound to 2.5 exahash in Q2 as new miners are deployed.