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Bit Digital, Inc (BTBT)·Q4 2024 Earnings Summary

Executive Summary

  • Bit Digital’s Q4 2024 marked a visible pivot to HPC: cloud services revenue reached $13.0M and accounted for ~50% of total Q4 revenue; digital asset mining contributed ~40% of Q4 revenue, and colocation added $1.4M from the October Enovum acquisition .
  • Management highlighted a growing contracted run-rate in cloud services ($62M currently; ~$72M with DNA Fund starting late March), plus additional B200/H200 capacity and on‑demand initiatives that can further lift ARR in coming quarters .
  • Guidance/timing shifted: the $100M HPC run-rate target moved from “by year‑end 2024” to “early 2025,” reflecting deliberate customer-led chip upgrades and capital discipline; Montreal II Tier‑3 data center targeted for mid‑2025, with Cerebras 5MW colocation also commencing mid‑2025 .
  • Financing narrative is a catalyst: management intends to “turn off” the ATM at current valuations and pursue non‑dilutive mortgage/vendor financing, which could re-rate the stock away from “pure Bitcoin miner” perceptions as WhiteFiber (HPC) scales .

What Went Well and What Went Wrong

What Went Well

  • Rapid HPC scale-up: “HPC revenue made up over 40% of full‑year revenue and more than half of Q4 revenue,” with Q4 cloud services revenue of $13.0M and nine active customers; run-rate ~$62M rising to ~$72M after DNA Fund begins .
  • Strategic vertical integration: Enovum acquisition added Tier‑3 capacity, a 280+ MW expansion pipeline, and colocation revenue of $1.4M recognized from the acquisition date through year‑end; Montreal II retrofit is underway with a mid‑2025 go‑live .
  • Blue‑chip validation: a 5MW, five-year colocation agreement with Cerebras confirms Bit Digital’s ability to deliver high‑density, customized HPC infrastructure; operations expected to commence mid‑2025 .

What Went Wrong

  • Mining pressure: halving and rising network difficulty reduced bitcoin production YoY; mining margins compressed post‑halving (Q3 total gross margin was 32% vs. Q2 48%), with legacy fleet inefficiency a noted drag .
  • Digital asset volatility hit quarterly results: Q3 adjusted EBITDA was −$21.8M, driven largely by a $21.9M unrealized loss on digital assets; this overshadowed underlying HPC gross profit momentum .
  • Timing slip on HPC run-rate: the $100M HPC run-rate target—originally guided for YE24—shifted to early 2025 amid customer‑driven hardware upgrades to newer NVIDIA chips (B200/GB200) and prioritization of quality revenue .

Financial Results

Quarterly Headline Metrics

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($M)$29.0 $22.7 N/A (not disclosed)
GAAP EPS ($/share)$(0.09) $(0.26) N/A (not disclosed)
Total Gross Margin (%)48% 32% N/A (not disclosed)

Segment Revenues by Quarter

Segment Revenue ($M)Q2 2024Q3 2024Q4 2024
Cloud Services$12.5 $12.2 $13.0
Bitcoin Mining$16.1 $10.1 N/A (40% of mix)
ColocationN/AN/A$1.4
ETH Staking~$0.37 ~$0.44 N/A

Note: Q4 segment mix signposts (cloud ~50%, mining ~40%) were disclosed without a total revenue figure .

KPIs and Operating Metrics

KPIQ2 2024Q3 2024Q4 2024
Bitcoins Earned (units)244.2 165.4 N/A
Avg Fleet Efficiency (J/TH)27.9 27.8 26.2 (as of 12/31/24)
Active Hash Rate (EH/s)2.6 2.4 1.8 (as of 12/31/24)
Electricity Price ($/kWh)$0.047 $0.057 N/A

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
HPC Revenue Run-RateTarget date~$100M by YE24 ~$100M early 2025 Lowered/Delayed (timing)
Montreal II 5MW Tier‑3 Go‑LiveGo‑live dateMay 2025 June 2025 (mid‑2025) Delayed ~1 month
Cerebras 5MW ColocationCommencementMid‑2025 Mid‑2025 Maintained
Anchor Customer ExpansionHardware/StartAdditional 2,048 H100s; late Q3 2024 contemplated Replaced: 464 B200 GPUs; ~$15M ARR; start around June 2025 Changed hardware and timing
Cloud Services Run-RateNear-termN/A~$62M now; ~$72M when DNA Fund starts late March Raised (near-term run-rate)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
AI/HPC expansion (B200/H100/H200)Binding Boosteroid term sheet; anchor customer upgrade consideration; queue for B200/GB200; strong pipeline Cloud $13.0M in Q4; run-rate ~$62M→$72M; B200 on‑demand ARR potential ~$25M; 908 H200 GPUs under evaluation Accelerating demand; disciplined capital deployment
Data center footprintEnovum acquisition; 8MW by 2Q25; 32MW in 2025 pipeline Montreal II retrofit; 5MW in mid‑2025; added U.S. sites under LOI; 156MW under exclusive LOI Expanding pipeline; metro‑area inference focus
Tariffs/MacroNot emphasized previouslyMonitoring tariff risks (generators/HVAC/electrical imports), supply chain diversification strategies Emerging risk management
Financing strategyHeavy ATM usage in 2024; evaluating debt Turning ATM off at current valuations; pursuing mortgage/vendor financing; non‑dilutive preference Shift to debt/non‑dilutive capital
Mining strategyOpportunistic; fleet high‑grading; 3 EH/s target H1’25 Refresh to S21/S21+; ~2.5 EH/s by May; 3 EH/s scenario contingent on ~6.6MW hosting and ~1,800 S21+ Efficiency > scale; maintain BTC exposure
Customer diversificationBoosteroid MSA executed; new H200 term sheets DNA Fund 576 H200 MSA ($20.2M/2 years); first B200 cluster on‑demand; multiple short‑term H200 MSAs Broader client base; mix of reserved/on‑demand

Management Commentary

  • “HPC revenue made up over 40% of full‑year revenue and more than half of Q4 revenue… Cloud services produced $13,000,000 of revenue in the fourth quarter” .
  • “The Enovum acquisition… vertically integrated our data center operations… Montreal II… a five megawatt Tier three data center expected to go live in mid‑twenty twenty five… powered by 100% renewable hydroelectricity” .
  • “We are firmly in the mix for blue chip deals… secured a five‑year colocation agreement to provide 5MW… with Cerebras… operations… mid‑2025” .
  • “At these current levels, there is no desire to tap into the ATM… focus is on securing alternative financing options… mortgage financing… vendor financing and leasing structures” .
  • “We believe that we are deeply misunderstood… the bigger our HPC business gets, the more our stock seems to trade like a pure play Bitcoin miner… eventually… valued properly” .

Q&A Highlights

  • Cloud run-rate build: ~$62M current; ~$72M when DNA Fund begins; contracted basis “well past $100M” including data center business; B200 on‑demand could add ~$25M ARR; 908 H200 GPUs under evaluation for reserved contracts .
  • Colocation revenue: ~$1.4M recognized since Enovum closing in Q4; Montreal II mid‑2025; Cerebras 5MW timing mid‑2025; additional U.S. capacity under LOI (24MW available, path to 48MW in 60–90 days, and +100MW by end‑2025) .
  • Mining trajectory: redeploying/refreshing to S21/S21+; efficiency target ~22 J/TH; operational hash rate to ~2.5 EH/s by May; 3 EH/s requires ~6.6MW additional hosting and ~1,800 S21+ .
  • Financing pivot: ATM off at current valuations; progressing on commercial mortgage term sheet; considering vendor/lease financing for GPUs to preserve capital efficiency .
  • On‑demand platform: near‑term via third‑party partner; internal on‑demand platform targeted end‑2025/early‑2026 .

Estimates Context

  • We attempted to retrieve S&P Global consensus EPS and revenue estimates for Q4 2024 and prior quarters, but the data was unavailable due to an API rate‑limit error; therefore, comparisons versus Wall Street consensus are not provided at this time. We will update if S&P Global data becomes accessible. [SPGI request error]

Key Takeaways for Investors

  • HPC is now the core earnings driver: Q4 cloud services revenue of $13.0M, ~50% of Q4 revenue, with contracted and pipeline growth across reserved and on‑demand offerings; this should reduce earnings cyclicality versus mining .
  • Vertical integration and metro‑area strategy (inference latency) creates defensible positioning; Enovum’s pipeline and the Cerebras win de‑risk multi‑MW expansions in 2025 .
  • Financing shift is constructive: turning off ATM at current valuations and moving to mortgage/vendor financing could unlock non‑dilutive growth and improve investor perception .
  • Mining becomes a “call option”: fleet optimization and efficiency gains matter more than EH/s scale; expect incremental improvements without capital crowd‑out from HPC .
  • Near‑term catalysts: DNA Fund ramps late March, B200 on‑demand cluster launches in April, Montreal II mid‑2025, Cerebras deployment mid‑2025; execution could reframe the equity narrative away from crypto beta .
  • Watch tariff/policy risk on data center equipment costs; management is pursuing supply chain diversification to mitigate potential impacts .
  • If/when the market decouples BTBT from “pure miner” comps, the HPC business may warrant higher multiples; non‑dilutive financing and consistent run‑rate disclosures can accelerate that re‑rating .