Bit Digital shifts focus to AI infrastructure, reporting strong cloud growth and $540 million in new contracts while using Ethereum holdings to finance data center expansion.
Bit Digital's Q2 showed strong cloud services growth and narrowed losses, but mining decline and debt raise uncertainty.
WhiteFiber signed multi-year cloud services agreements worth over $540 million, supporting future AI infrastructure revenue.
Ethereum's price decline contributed to a $46 million impairment and lower staking revenue for Bit Digital.
Bit Digital's Bitcoin mining output fell sharply as the company shifts focus away from mining.
Bit Digital reported a 15% revenue increase to $32.1 million in Q2, driven by a 42% surge in cloud services. The company is pivoting away from Bitcoin mining to focus on AI infrastructure, leveraging a $540 million contract pipeline for its WhiteFiber subsidiary while utilizing Ethereum-backed debt to fund expansion.
Bit Digital is funding its WhiteFiber data center expansion by borrowing $50 million against its Ethereum treasury rather than issuing new equity or selling its crypto assets.
The company is de-emphasizing its mining business, which saw a 58% year-over-year revenue decline, and management has stated no meaningful capital will be allocated to this segment moving forward.