Bit Digital Inc (BTBT) Q3 2024 Earnings Call Highlights: Navigating Growth Amidst Challenges

In This Article:

  • Total Revenue: $22.7 million, a 96% increase compared to the prior year.

  • Bitcoin Production: Decreased 59% year-over-year to 165.4 Bitcoins.

  • Bitcoin Mining Revenue: Decreased 11% from the prior year to $10.1 million.

  • HPC Services Revenue: $12.2 million recognized during the quarter.

  • Ethereum Staking Revenue: 161.9 Ethereums earned, approximately $450,000 in revenue.

  • Total Cost of Revenue: $15.5 million, up from $8.8 million in the prior year.

  • Gross Profit: $7.2 million, a 162% increase from the prior year.

  • Gross Margin: Expanded 800 bps to 32%.

  • General and Administrative Costs: $13.7 million, compared to $4.9 million in the prior year.

  • Depreciation and Amortization: $8.4 million, up from $3.6 million last year.

  • Adjusted EBITDA: Negative $21.8 million, compared to negative $2.9 million last year.

  • GAAP Earnings Per Share: Loss of $0.26, compared to a loss of $0.08 in the prior year.

  • Cash and Restricted Cash: Approximately $106 million as of September 30, 2024.

  • Digital Assets: Valued at approximately $118 million.

  • Total Assets: $376 million at the end of the quarter.

  • Shareholders' Equity: $315 million.

  • CapEx: Approximately $1.6 million during the quarter.

Release Date: November 18, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bit Digital Inc (NASDAQ:BTBT) announced the acquisition of Enovum, a high-performance computing data center operator, which vertically integrates their operations and adds a new revenue line.

  • The company has a strong pipeline of expansion opportunities, expecting to add 8 megawatts by Q2 2025 and reach 32 megawatts by the end of the year.

  • Bit Digital Inc (NASDAQ:BTBT) has executed a Master Service Agreement with Boosteroid, the third-largest cloud gaming provider, and expects to deploy around 10,000 GPUs through 2025.

  • The company has made significant hires, including a Head of Revenue and CTO, enhancing their GPU cloud business with a world-class team.

  • Bit Digital Inc (NASDAQ:BTBT) reported a 96% increase in total revenue compared to the prior year, driven by their HPC business.

Negative Points

  • The third quarter was challenging for Bit Digital Inc (NASDAQ:BTBT)'s mining business due to increased electricity costs and lower mining margins.

  • The company received a notice of termination for hosting contracts from Coinmint, affecting their mining operations.

  • Bit Digital Inc (NASDAQ:BTBT) reported a negative adjusted EBITDA of $21.8 million for the quarter, impacted by unrealized losses on digital assets.

  • The company faces increased competition in the GPU-as-a-Service market, making it difficult to pre-sell GPU capacity.

  • Bit Digital Inc (NASDAQ:BTBT) is considering separating its HPC and digital asset businesses due to market undervaluation and financing challenges.