• Revenue Growth: Increased by 141% to $108 million in 2024.
• Adjusted EBITDA: Reached $73 million in 2024.
• HPC Revenue: Accounted for over 40% of full-year revenue and more than half of Q4 revenue.
• Cloud Services Revenue: Generated $45.7 million in its first year, with $13 million in Q4 2024.
• Bitcoin Mining Revenue: $58.6 million, up 32% year-over-year.
• Gross Margin: Expanded to 42.3%, a 500 basis point increase.
• Net Income: GAAP earnings per share of $0.19 for 2024.
• Cash and Digital Assets: $98.9 million in cash and $161.4 million in digital assets as of December 31, 2024.
• Capital Expenditures: Totaled $94 million in 2024.

• Warning! GuruFocus has detected 4 Warning Signs with BTBT.

Release Date: March 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bit Digital Inc (NASDAQ:BTBT) reported a significant revenue growth of 141% in 2024, driven by the expansion of their HPC business.
• The company successfully integrated a major acquisition, enhancing their data center operations and customer base.
• Cloud Services, a new segment in 2024, became the largest revenue generator, contributing $13 million in Q4 alone.
• Bit Digital Inc (NASDAQ:BTBT) has secured multiple long-term contracts, including a significant partnership with Cerebras for a high-density colocation capacity.
• The company remains debt-free and is exploring non-dilutive financing options to support further growth in their HPC business.

Negative Points

• Gross profit margins contracted slightly in Q4 due to increased GPU leasing expenses and additional data center capacity.
• The Bitcoin mining segment saw a decline in its revenue contribution, dropping from 98% in 2023 to 54% in 2024.
• There is a potential risk of increased costs due to tariff wars affecting the import of critical data center components.
• The company faces challenges in managing capital deployment to avoid excess inventory risk in their GPU procurement strategy.
• Bit Digital Inc (NASDAQ:BTBT) acknowledges that their stock is undervalued and misunderstood, trading more like a pure-play Bitcoin miner despite their diversified operations.

Q & A Highlights

Q: Can you provide more details on the current run rate for cloud services and any upcoming contracts? A: Sam Tabar, CEO: The current run rate is $62 million, with a new contract from D&A funds expected to increase it to $72 million. Additionally, the deployment of 512 GPUs in July will add $15 million in ARR, bringing the run rate to $87 million. We are already past $100 million on a contracted basis, including both GPU and data center businesses.

Q: Could you elaborate on the on-demand pool and its potential revenue impact? A: Ben Lampson, Head of Revenue for White Fiber: The on-demand pool is not contracted but commands a higher price per hour. The B200 GPUs coming online in April could generate $25 million in ARR if fully utilized on-demand. We may choose to convert some of these to reserved contracts for long-term stability.

Q: What is the status of the 100-megawatt site under LOI, and how does it fit into your capacity plans? A: Billy Krasopoulas, Head of Data Center Business: The site currently has 24 megawatts available, with plans to double to 48 megawatts within 60-90 days. We are in discussions to secure an additional 100 megawatts by the end of 2025. This site represents about 90% of our 156 megawatts of exclusive LOI capacity.

Q: How are you managing equipment sourcing and potential tariff impacts on your data center build-out? A: Sam Tabar, CEO: We acquired Enovum for their expertise in logistics and supply chain management. Billy Krasopoulas added that equipment for upcoming deployments is secured, with orders placed for future needs. We are confident in our ability to meet delivery timelines without recourse for clients.

Q: Given the current stock levels, are you considering alternative financing options instead of equity issuance? A: Sam Tabar, CEO: At current stock levels, we have no desire to tap into the ATM. We are pursuing non-dilutive financing options, such as debt, which is more feasible for our HPC business. We have an attractive term sheet from a Canadian bank for data center financing, allowing us to avoid equity dilution.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.