Release Date: May 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cloud services revenue increased by 84% year over year and 14% sequentially, reaching $14.8 million.
- Mining operations remained gross margin positive, with margins expanding approximately 500 basis points sequentially to 21%.
- The company is actively engaged in several large contract discussions, each with an annualized revenue potential above $100 million.
- Bit Digital Inc (BTBT, Financial) is investing in proprietary software development to enhance platform capabilities, including the launch of an API layer for external provisioning.
- The company remains debt-free, with a strong liquidity position of approximately $141 million, including digital assets and USDC.
Negative Points
- First quarter 2025 revenue from the mining segment decreased 64% year over year and 26% sequentially.
- Bitcoin mining production declined 80% year over year to 83 Bitcoins for the quarter.
- Total revenue for the quarter was $25.1 million, a 17% decrease compared to the same quarter last year.
- Adjusted EBITDA was negative $44.5 million, primarily due to a $49.2 million mark-to-market loss on digital asset holdings.
- The company raised approximately $48 million through the ATM program post-quarter end, which may raise concerns about equity dilution.
Q & A Highlights
Q: Can you provide an update on the white fi rebranding and any new platform initiatives?
A: The rebranding has been well received, with positive feedback on the new website. We are working on platform initiatives, including first-to-market technology, with announcements expected in the coming weeks. We are also developing cross-data center workloads, which we believe will be revolutionary.
Q: How do you see demand from hyperscalers and enterprise users evolving over the next 6 months?
A: We are seeing strong demand from both hyperscalers and medium-sized neo-clouds for capacity expected to come online later this year. We anticipate providing updates in the next few months.
Q: Can you explain the delay for customer one from June 30 to August 20 and the options for using GPUs?
A: The customer exercised their option to delay due to internal product development schedule changes. We have the cluster ready and are negotiating multi-year contracts with other parties. The GPUs are generating revenue through on-demand platforms.
Q: How should we think about your expansion in the US versus Canada, and what are the expectations for the North Carolina site?
A: We are evaluating over 500 megawatts of potential capacity across Canada and the US. The North Carolina site is subject to closing conditions, and we will provide updates once finalized. Our focus is on retrofits to reduce costs and timelines.
Q: How do you weigh raising equity versus liquidating investments, and what is your financing strategy?
A: The ATM filing is a mechanical renewal for flexibility. We balance equity raising with selling digital assets to fund growth responsibly. We are excited about announcing mortgage financing to fund data center growth, preferring cheap financing sources over the ATM.
Q: What levers can change the gross margin profile of your cloud and colo business, and what is your GPU procurement strategy?
A: Increasing revenue will naturally drive gross margins up. We aim for long-term contracts for predictability. Our GPU procurement strategy aligns with contracted demand to minimize speculative risk, focusing on advanced technologies attractive to end users.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
