Bit Digital reported a second-quarter net loss of $107.2 million on August 13, 2026, even as revenue rose 15% to $32.1 million. A $46.0 million non-cash impairment on liquid staked Ethereum accounted for a large share of that loss.
What Happened?
- Bit Digital posted second-quarter revenue of $32.1 million, up 15% from $27.9 million in the prior quarter.
- Net loss narrowed to $107.2 million, or $0.31 per diluted share, from $146.7 million in the first quarter.
- Cloud services revenue reached $23.8 million, a 42% jump, as new contracts started billing at roughly 58% gross margin.
- The company recorded a $46.0 million non-cash impairment after moving 73,235 ETH into a liquid staking token.
- Bit Digital borrowed $50 million against its ETH and lent WhiteFiber up to $150 million instead of selling coins.
Bit Digital (Nasdaq: BTBT), a Strategic Asset Company built around Ethereum holdings and a majority stake in AI data center operator WhiteFiber (Nasdaq: WYFI), booked $32.1 million of revenue against gross profit of $18.6 million, a 57.9% margin. The second-quarter results release shows cloud services carrying the quarter at $23.8 million, up 42% sequentially as new contracts entered service, with colocation roughly flat at $4.7 million.
The two crypto native lines moved the other way. ETH staking yields generated $0.9 million of revenue, down from $2.3 million, which the company tied to the liquid staking shift and lower average ETH prices. Mining contributed $2.4 million on 32.3 bitcoin against 48.1 in the prior quarter, and management said it will not fund it further.
Cash and equivalents finished at $83.6 million, roughly $27.5 million of it held at Bit Digital itself. First-half operating cash flow reached $46.8 million, up 33% year over year, against $336.2 million of convertible notes.
Bit Digital Reports Second Quarter 2026 Results
— Bit Digital, Inc. NASDAQ:BTBT (@BitDigital_BTBT) August 13, 2026
This quarter was about capital allocation — our Strategic Asset Company model in action. Bit Digital borrowed against a portion of our own treasury and became a lender, supporting @WhiteFiber_‘s growth without selling Ethereum or… pic.twitter.com/MGT7dJIKPR
The accounting switch that produced the writedown
The company liquid staked 73,235 ETH during the quarter and received 66,192 LsETH in exchange. LsETH falls under different accounting guidance, carried at cost less impairment rather than fair value, so a price drop registers as a charge and a recovery does not reverse it. That reclassification produced the $46.0 million impairment, which the company said does not represent a realized loss.
Timing sharpened the hit. Bit Digital bought 8,568 ETH for $20 million on May 11, 2026, at roughly $2,334.25 per coin, and ETH closed the quarter near $1,569. The company sold no ETH and still holds about 164,310.5 ETH in total.
Of that total, 49,000 tokens went out as collateral and now appear as a $105.6 million digital asset collateral receivable, with 17,192 tokens held back at $27.6 million as a margin buffer. Liquid staking adoption has spread through corporate treasuries faster than the accounting behind it.
Bit Digital became its own subsidiary’s lender
Bit Digital raised $50 million against part of its ETH treasury, then used its own balance sheet to originate a delayed draw term facility for WhiteFiber with commitments up to $150 million, guaranteed by the WhiteFiber parent. Independent committees at both companies reviewed the transaction and fairness opinions went to each board.
The money funds NC-1, WhiteFiber’s data center campus, absent from second quarter results. Initial billing has started, with full run-rate billing across 40 megawatts of contracted IT load expected later this month. WhiteFiber has also signed new multi-year cloud agreements worth more than $540 million since its last earnings call.
Remaining performance obligations reached approximately $1.0 billion at quarter end, with $57.7 million due in the balance of 2026. Contract liabilities rose to $143.1 million from $79.6 million at year-end 2025.
The market is not paying for the operating businesses
Bit Digital held 27,043,750 WhiteFiber shares at quarter end, an implied value of about $1.05 billion based on the $38.85 Nasdaq close. The company says it does not intend to sell any of those shares in 2026.
CEO Sam Tabar named the gap in the release. He said:
Four things the release does not settle:
- What permanent NC-1 financing will cost, and when it closes?
- Which options the Board is weighing to address the valuation gap?
- How much of the $150 million facility WhiteFiber has drawn to date?
- Whether more LsETH impairment follows if ETH stays below cost?
Shareholders already holding the stock can watch two lines when the quarterly report lands: the digital asset collateral receivable and the drawn balance on the WhiteFiber facility. Together they show how much of the treasury is pledged and how much of the loan is live.
The Bottom Line
The quarter splits into two businesses moving in opposite directions. Infrastructure revenue is compounding and throwing off real operating cash, while the digital asset side produces paper losses that run straight through the income statement. The ETH backed borrowing bridges them, letting the treasury fund the operating business without a coin sale or an equity raise.
That bridge has a cost. Securing the loan pushed the ETH position into cost-less impairment accounting, which turned a price decline into a large non-cash charge and cut staking revenue at the same time. Anyone reading the loss line is reading an accounting outcome as much as an operating one. Whether the market accepts the productive balance sheet framing Tabar described rests on NC-1 billing at the run rate management laid out.
