Bit Digital (BTBT) Shares Surge Despite Mining Revenue Decline

Shares of Bit Digital Inc BTBT jumped 14.6% to $2.36 on Friday afternoon after the company reported its first-quarter results, showcasing momentum in its cloud and colocation businesses despite a drop in Bitcoin BTC/USD mining revenue.

What To Know: Revenue totaled $25.1 million, beating analyst expectations of $24.89 million, but reflecting a 17% decline year-over-year. Cloud services revenue surged 84% to $14.8 million, now making up the majority of total revenue. Colocation services contributed $1.6 million following the Enovum acquisition.

In contrast, bitcoin mining revenue fell 64% to $7.8 million due to the 2024 halving event and reduced hash rate, now comprising just 31% of revenue versus 72% a year ago.

The company posted an adjusted EBITDA loss of $44.5 million, including $49.2 million in mark-to-market losses on digital assets. GAAP EPS was a loss of 32 cents, missing estimates.

Bit Digital continues expanding its AI infrastructure, signing new GPU contracts and rebranding its HPC business as WhiteFiber. Total liquidity stood at $141.4 million with no debt.

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How To Buy BTBT Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Bit Digital’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, BTBT has a 52-week high of $5.74 and a 52-week low of $1.69.