Latest news with #BitDigital
Business Insider
9 hours ago
- Business
- Business Insider
U.S. Senate passes bill to set up stablecoin regulatory framework, Axios says
The U.S. Senate has passed a bill to set up the first regulatory framework for stablecoins, Axios' Stephen Neukam reports. The GENIUS Act, which has been criticized by many Democrats over corruption concerns surrounding President Trump's growing cryptocurrency empire, was passed with a 68-30 vote, with two GOP members voting no on the legislation, the author says. Publicly traded companies in the space include Bit Digital (BTBT), Bitfarms (BITF), Coinbase (COIN), Core Scientific (CORZ), Greenidge Generation (GREE), Mara Holdings (MARA), Riot Platforms (RIOT), Strategy (MSTR), Stronghold Digital Mining (SDIG) and TeraWulf (WULF). Confident Investing Starts Here:
Yahoo
23-05-2025
- Business
- Yahoo
Exploring High Growth Tech Stocks In The US May 2025
The U.S. market is currently experiencing heightened volatility, with major indices like the Dow Jones and Nasdaq Composite facing declines due to renewed trade tensions following President Trump's recent tariff threats against the EU and Apple. In this environment, identifying high-growth tech stocks requires a focus on companies that demonstrate resilience through innovation and adaptability amidst shifting economic policies and global trade uncertainties. Name Revenue Growth Earnings Growth Growth Rating Super Micro Computer 26.38% 39.09% ★★★★★★ Ardelyx 20.78% 59.46% ★★★★★★ Travere Therapeutics 26.41% 64.47% ★★★★★★ Blueprint Medicines 21.36% 61.45% ★★★★★★ TG Therapeutics 26.46% 38.75% ★★★★★★ Alnylam Pharmaceuticals 23.65% 61.11% ★★★★★★ AVITA Medical 27.28% 60.66% ★★★★★★ Alkami Technology 20.54% 76.67% ★★★★★★ Ascendis Pharma 35.16% 60.26% ★★★★★★ Lumentum Holdings 21.59% 110.32% ★★★★★★ Click here to see the full list of 237 stocks from our US High Growth Tech and AI Stocks screener. Below we spotlight a couple of our favorites from our exclusive screener. Simply Wall St Growth Rating: ★★★★★☆ Overview: Bit Digital, Inc., along with its subsidiaries, operates in the bitcoin mining industry and has a market capitalization of $502.52 million. Operations: The company is involved in bitcoin mining, focusing on generating revenue through the production of bitcoin. With a market capitalization of $502.52 million, its business model revolves around leveraging its mining operations to capitalize on the cryptocurrency market. Despite recent setbacks, Bit Digital's aggressive expansion into AI infrastructure, highlighted by its new data center in Quebec and a significant partnership with Cerebras Systems, underscores its strategic pivot towards high-growth sectors. This move is particularly notable as the company navigates through a challenging phase marked by a substantial net loss of $57.71 million in Q1 2025 and a sharp revenue drop from the previous year. However, with an expected annual profit growth of 103% and revenue growth forecasts outpacing the market at 34.6%, Bit Digital is positioning itself to capitalize on burgeoning tech trends, albeit amidst financial volatility and shareholder dilution concerns from recent equity offerings. Click here and access our complete health analysis report to understand the dynamics of Bit Digital. Gain insights into Bit Digital's historical performance by reviewing our past performance report. Simply Wall St Growth Rating: ★★★★☆☆ Overview: ADMA Biologics, Inc. is a biopharmaceutical company that develops, manufactures, and markets specialty plasma-derived biologics for treating immune deficiencies and infectious diseases globally, with a market cap of $4.80 billion. Operations: ADMA Biologics generates revenue primarily from its ADMA Biomanufacturing segment, which accounts for $449.41 million, and its Plasma Collection Centers contributing $9.83 million. ADMA Biologics has demonstrated robust growth with a 20.8% forecast in annual earnings and an 18.6% increase in revenue per year, outpacing the US market average of 14.3% and 8.6%, respectively. This growth is supported by strategic advancements, such as the FDA-approved yield enhancement process that boosts production by approximately 20%. Additionally, the company's proactive financial strategy is evident from its recent share repurchase program valued at $500 million and upward revisions in revenue expectations to over $625 million by 2026, reflecting strong operational performance and market confidence. Dive into the specifics of ADMA Biologics here with our thorough health report. Evaluate ADMA Biologics' historical performance by accessing our past performance report. Simply Wall St Growth Rating: ★★★★★☆ Overview: Geron Corporation is a commercial-stage biopharmaceutical company dedicated to developing therapeutic products for oncology, with a market capitalization of $853.47 million. Operations: Geron Corporation generates revenue primarily from the development of therapeutic products for oncology, amounting to $116.29 million. The focus on oncology therapeutics defines its business model and revenue stream. Despite Geron's current unprofitability, its revenue is projected to grow at an impressive rate of 35.9% annually, outstripping the US market average of 8.6%. This growth trajectory is underpinned by a significant increase in R&D spending aimed at developing innovative biotech solutions, reflecting a strategic commitment to long-term value creation through scientific advancement. Recent financial results underscore this potential: Q1 2025 revenue surged to $39.6 million from just $0.304 million the previous year, alongside a reduction in net loss from $55.39 million to $19.84 million year-over-year, signaling improving operational efficiency and market adaptation despite ongoing legal challenges and leadership transitions that could influence future performance and investor sentiment. Get an in-depth perspective on Geron's performance by reading our health report here. Explore historical data to track Geron's performance over time in our Past section. Delve into our full catalog of 237 US High Growth Tech and AI Stocks here. Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments. Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqCM:BTBT NasdaqGM:ADMA and NasdaqGS:GERN. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Is It Worth Investing in Bit Digital (BTBT) Based on Wall Street's Bullish Views?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Let's take a look at what these Wall Street heavyweights have to say about Bit Digital, Inc. (BTBT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Bit Digital currently has an average brokerage recommendation (ABR) of 1.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by five brokerage firms. An ABR of 1.00 indicates Strong Buy. Of the five recommendations that derive the current ABR, five are Strong Buy, representing 100% of all recommendations. Check price target & stock forecast for Bit Digital here>>>The ABR suggests buying Bit Digital, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. Looking at the earnings estimate revisions for Bit Digital, the Zacks Consensus Estimate for the current year has declined 100% over the past month to -$0.04. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Bit Digital. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Bit Digital with a grain of salt. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bit Digital, Inc. (BTBT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
Q1 2025 Bit Digital Inc Earnings Call
Cameron Schnier; Investor Relation; Bit Digital Inc Sam Tabar; Chief Executive Officer; Bit Digital Inc Erke Huang; Chief Financial Officer, Director; Bit Digital Inc Benjamin Lamson; Head of Revenue; Bit Digital Inc Billy Krassakopoulos; Chief Executive Officer, Enovum; Bit Digital Inc George Sutton; Analyst; Craig Hallum Brian Dobson; Analyst; Clear Street Mike Grondahl; Analyst; Northland Capital Markets Nick Giles; Analyst; B. Riley Securities Joe Gomes; Analyst; NOBLE Capital Kevin Dee; Analyst; HC Wainwright Operator Hello and welcome to the Bit Digital first quarter 2025 earnings conference call. Good morning, good afternoon, and good evening, depending on where you're joining us from. (Operator Instructions) Also, as a reminder, today's conference is being recorded. I'll now hand the call over to your host, Cameron Schnier, Head of Investor Relations at Bit Digital. Cameron, the floor is yours. Cameron Schnier Thank you. Good morning and welcome to the Big digital first quarter 2025 earnings call. Joining us on the call today are SAM Tar, Chief Executive Officer, and Eric Wang, Chief Financial Officer. Before we begin, I would like to remind all participants that some of the statements we will be making today are forward-looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. I therefore refer you to yesterday's 10k filing and our other SEC filings. Our comments today may also include non-GAAP financial measures. Additional details and reconciliation to the most directly comparable GAAP financial measures can be found in our 10k filing, which is on our website. After our prepared remarks, we'll open the call up for questions. If you would like to ask a question, please hit one on your keypad. Is that covered, I will turn the call over to Sam to discuss our performance. Sam. Sam Tabar Thank you, Cam. Ladies and gentlemen, thank you for joining us on the call today. Today, I'll walk through our first quarter results and provide key updates across the different business units at the Digital. Let's start with the mining business. Our overall top line results were dragged down by our mining segment where first quarter 2025 revenue decreased 64% year over year and 26% sequentially. This contrasts greatly with our HPC business lines which demonstrated solid growth. Mining results were affected by the 2024 halving event and by our fleet redeployment program as we exited coment facilities at the end of 2024. These factors contributed to an 80% year over year decline in production to 83 Bitcoins for the quarter. Despite the lower production, our mining operations remained gross margin positive. In fact, mining margins expanded approximately 500 basis points sequentially to 21%, reflecting improvements in fleet efficiency and cost structure. Our active hash rate stood at approximately 1.5 exahash by the end of March 2025, and fleet efficiency was approximately 24.5 joules per terahash. We had a shipment of previously ordered S21 miners from Southeast Asia that we paused amid tariff uncertainty as the prescribed import duties would have significantly increased payback periods. But we have since begun taking delivery of those units and expect to return to approximately 2.5 exahash with fleet efficiency in the low 20s during June. Mining represented just 31% of our total revenue for the quarter compared to 72% in the same period last year. This shift reflects both the growth of our HPC business and the reality that without heavy reinvestment, mining market share naturally declines. And we are fine with that while our hash rate stands to rebound in the second quarter, our primary focus remains on investing in our data center buildout and cloud services business. Turning to cloud services. Revenue for the segment increased 84% year over year and 14% sequentially to $14.8 million. Gross margins rebounded, expanding approximately 700 bis sequentially to 59%. We continue to expect segment margins to improve over time as revenue scales and as the impact from operating lease costs tied to our anchor customer contract is spread across a broader base. Based on our current contracted deployments, we expect stronger sequential revenue growth in the second quarter and continued growth in the third quarter of 2025. Several deployments commenced midway through the first quarter. So we expect a recognition of full 25% of revenue contribution in the second quarter. Additionally, our initial deployment for a DNA fund, a 576 H200 cluster, began generating revenue in April and represents approximately $10 million in annualized revenue. In May we expanded our relationship with DNA Fund through two new contracts totaling 616,200 GPUs under 2 year terms representing approximately $10.8 million of additional annualized revenue. The expansion with this customer reflects our strategy of building trust through execution. And using that as the foundation for expanding relationships over time. Our procurement strategy remains focused on aligning GPU purchases with contracted demand rather than taking speculative inventory risk. We are effectively sold out of H-200 capacity and have prioritized deployments backed by secured contracts. While overall demand for B200 GPUs remains healthy, uptake through our on-demand distribution partnership of shade form has been impacted by hardware re reliability issues. We believe the crux of that issue is tied to the early iterations of servers we received, and we're working with the OEM to address that issue. We expect this dynamic to improve over time as early hardware issues are hopefully resolved. We are currently marketing this cluster to customers for a multi-year contract. Separately, our anchor customer exercised their right to adjust the start date on their 464 B-200 deployment from June 30th to August 20th, the latest allowable date under the agreement. As a result, this contract represents approximately $15 million of annualized revenue for 18 months. If we don't secure an acceptable customer contract for our existing B200 cluster, we will likely use those GPUs to fulfill our anchored customer contract. We continue to prioritize securing multi-year deployments with credit worthy counterparties as the foundation for our growth strategy. Looking ahead, we're engaged in several large contract discussions with a focus on securing multi-year agreements that are financeable and aligned with our capital efficiency objectives. Currently, we're conducting diligence and negotiating on 4 separate deployments with creditworthy counterparties. Each opportunity carries an annualized revenue potential above $ 100 million and a three to five year contract term. These are the types of contracts that we believe would support attractive financing structures, and we're working on those financing options in parallel with negotiations. It's too early to say whether we'll ultimately win any of those deals, but we're encouraged by the progress and the fact that we're increasingly included in these processes. We believe this reflects the strength of the platform that we've built and are continuing to build through disciplined investment and execution. Finally, we are investing in proprietary software development to enhance our platform capabilities. A key milestone was the launch of our API layer for external provisioning of bare metal GPU servers with Shade form as our first integration partner. This development not only expands our ability to integrate with third party platforms but also streamlines operations for our direct customers. Over time, we expect that this will position white fiber as a premium cloud infrastructure offering focused on maximum performance and reliability. Turning to co-location services with our data centers. Development activity continues across our sites. While the segment represents a small portion of Q1 revenue, we are laying the foundation for this segment to be a major growth engine in the coming years. At Montreal too Development timelines have shifted modestly, and we now expect initial capacity to come online around early to mid-third quarter. The delay is largely due to the timing of debt financing, which we had expected to secure quicker, but we, but we're now in the very final stages. We recently completed the physical installation of a pilot GB 200 liquid cool system at Montreal 2. While not yet operational, the project supports collaboration between our cloud services and co-location teams, providing our cloud team a platform to test next generation hardware and our data center team early exposure to advanced liquid cool systems. We secured our 3rd data center site, Montreal 3 in April under a lease to own structure. Development remains on track with the cerebrous deployment expected to commence about 2 months from now. As a result, this is a build to suit deployment for a customer with a very sophisticated technology requirements, and we're really proud to partner with them and help accelerate their growth plans. We are making progress on both sides and remain confident in our ability to meet key customer commitments. In April, we disclosed via an AK filing that we signed the purchase agreement to acquire a roughly 95 acre property in North Carolina intended for data center development. This transaction remains subject to customary closing conditions, and we're actively working through those processes. While it is too early to provide additional details, we are very excited about the potential strategic significance of the site of this for our platform, and we look forward to providing further updates as appropriate. In addition to our active projects, our broader development pipeline remains robust. We continue to pursue additional data center opportunities across Canada and the US with over 500 megawatts of potential capacity under evaluation or negotiation. Customer demand for high performance, AI optimized co-location remains strong, and we're engaged in multiple active discussions that could drive incremental leasing at our existing and planned sites. On the financing side, we are now nearing finalization of a mortgage financing package for our Montreal 2 facility with a leading global banking partner. We expect to be in a position to announce the terms shortly. We believe this financing will validate the scalability and capital efficiency of our data center development model and provide a very strong foundation for future growth. Our data center platform is a critical pillar of our strategy to build a durable, diversified, and high margin infrastructure platform. We're very excited about the opportunities ahead as we continue to expand capacity and deepen relationships with high quality customers. I'll now hand over the line to Erke, who will discuss our financial results. Erke Huang Thank you, SAM. I will now walk through our financial results for the first quarter of 2025. Total revenue for the quarter was $25.1 million a 17% decrease compared to the same quarter last year, and slightly below the $26.1 million reported in the first quarter of 2024. The decline was primarily due to the lower Bitcoin mining revenue, which was partially offset by growth in our cloud services business, and a full quarter of co-location revenue. Bitcoin mining revenue was $7.8 million down 64% year over year and 26% sequentially. This decline reflects the impact of April 2024 happening, increased network difficulty, and a temporary decrease in operational hash rate as we exceeded. I mean facilities. We also retired and replaced older units to optimize fleet efficiency. Cloud services revenue was $14.8 million increase of 84% compared to the first quarter of 2024 and 14% sequentially. Growth was supported by new crowd contracts signed in both late 2024 and during the first quarter of 2025. Okay Contributed $1.6 million in revenue, up from $1.4 million in the fourth quarter. This reflects a full quarter of operations following our acquisition of Enova in late 2024. If you're mistaken, revenue was $0.6 million slightly lower than the prior quarter. Our cost of revenue excluding depreciation was $12.8 million down from $16.2 million in the same period last year, and flat compared to the first quarter. This included $6.1 billion in cloud services costs and $6.1 million in mining costs. Gross profit was $12.3 million representing a total gross margin of 49%. That compares to 47% in the same quarter last year and 40% in the first quarter of 2024. Cloud services gross margin expanded to 59% from 52% last quarter, reflecting improved utilization and scale. Co-location services gross margin improved modestly to 67%. General and administrative expenses were $8.2 million up from $6 million in 2024, which reflects an increase in headcount as we invest in our HPC business volumes. Depreciation and amortization was $7.2 million up slightly from the prior quarter, meaning due to a larger GPU fleet. As a note, we adjusted our depreciation schedule for cloud services for three years from three years to five years, which we believe better reflects the useful lives of these assets. This accounting change decreased DNA by approximately $2.5 million for the quarter. Adjusted EBITA was negative $44.5 million compared to a positive $58.5 million in the first quarter of 2024. This decline was primarily due to a $49.2 million month to market loss on digital asset holdings, reflecting lower BTC and ACH prices and quarter end. These were non-cash charges and do not reflect changes in operating performance. GAAP net loss per share was $0.32 on a fully diluted basis compared to earnings of $0.43 per share in the first quarter of 2024. Now turning to the balance sheet. As of March 31, we held $57.6 million in cash and cash equivalents and $3.7 million in restricted cash. The very market value of our digital assets was approximately $80 million as of that date. Total liquidity, including digital assets and USDC was approximately $141 million as of that date. Since then, the price of Bitcoin has increased by 25%, and the price of Ethereum has increased by 40%. The market value of digital asset position has appreciated on the market to market basis. Total assets were $485 million and the shareholders' equity was $4170 million. We remain debt-free. Capexx for the quarter was $65 million. Approximately $36 million for the CapEx was spent on the GPUs, including our B200 deployment. With the remainder spent on data center infrastructure, networking and storage equipment, and Bitcoin mining units. I will now hand it back to Sam for closing remarks. Sam Tabar Thank you, Erke. Before opening the line for questions, I want to address our financing strategy and recent capital activity. We remain firmly committed to pursuing non-diluted financing structures to support the expansion of our HPC platform. We're actively working to finalizing our first commercial mortgage financing. And we're confident that this will provide a strong foundation for scaling our data center business efficiently. We have also initiated the process for commercial mortgage financing in the US. Regarding the filing of a new ATM registration, I want to emphasize that this was a mechanical renewal of our shelf capacity. It doesn't reflect any change in our philosophy. We continue to view equity assurance as a tool to be used selectively and strategically with a strong preference for non-diluted financing wherever possible. During the first quarter, we raised approximately $10 million through our ATM program as part of our normal course of operations. Subsequent to quarter end, we raised approximately $48 million through the ATM. These proceeds strengthen our liquidity position and support certain strategic growth initiatives that we believe will be transformative for our business. We look forward to providing additional updates on these certain initiatives at the appropriate time. In parallel, we also sold approximately $32 million worth of Bitcoin Holdings during the quarter to help fund growth while managing our use of equity issuance. We did not sell any e during the quarter, but transferred $3400 into an internally managed fund which we did not count as Treasury Holdings. Maintaining a strong liquidity position is critical not just for executing on our expansion plans. But also for building trust with our customers. Prospective co-location tenants view financial strengths as a key factor in selecting infrastructure partners, and our balance sheet reinforces our ability to deliver projects reliably. Our focus remains on executing our growth strategy, scaling our infrastructure platform, and pursuing disciplined, shareholder friendly capital deployment. As our business continues to evolve, we are actively evaluating corporate structure and strategic initiatives to maximize long term shareholder value. With that, I would like to turn the call over to the operator for Q&A, but as a note, we have Billy Crossopoulos who leads our data center business, and Ben Lamson, head of revenue for our cloud business, on the line for Q&A. Operator Thank you. (Operator Instructions) We can take our first question from George Sutton with Craig Hallam. George Sutton Thank you Ben. I'd like to address my question to you if I could on the white fi rebranding, can you just, give us an update of how that's been received in the market and then I know you're, working on a lot of platform, initiatives that are somewhat, new to the market. Can you just give us any updates there? Benjamin Lamson Yeah, happy to. So, the rebrand has been, really well received. We actually have gone through a few iterations on the website as we've gotten feedback from customers and partners, you may have seen we've recently launched a new version of the website about two weeks ago, A week and a half ago, and the reviews have been fantastic, so really happy with how that's been panning out for us, in terms of on the platform layer, I want to be careful not really anything a little too soon we will have some news coming out here, in the next couple weeks that will be really exciting, some first to market technology that we're going to be releasing. We're just waiting on some independent third parties to publish some benchmarks around that, so look out for that that's going to be coming in the coming weeks and then we've got some other developments coming later this year on the platform side around, cross data center workloads which we believe is going to be a really a revolutionary technology, in terms of. Us being first to market to productize that, so I don't want to say too much just because I want to allow some of these independent third parties to release some of this data and we'll be able to leverage that the media splash there appropriately, but just stay tuned in the next few weeks for some announcements. George Sutton Understand, thank you. Operator Thank you. Our next question comes from Brian Dobson with Clear Street. Brian Dobson Thanks very much for taking my question this morning. Do you think that we could take maybe a step back and you could provide a 30,000 ft view on how you see demand from hyper scalers and enterprise users evolving over the next 6 months or so? Sam Tabar Would that be for the data center side so Billy please feel free to weigh in. Is that just to clarify that's that's with respect to data centers co-location correct? Yeah, that's right. Okay. Billy, would you like to take that? Billy Krassakopoulos We're seeing very strong and positive demand from not only hyper scales, but medium sized neo clouds as well for capacity that we're evaluating and looking to come online later on this year. We should have some news in the next couple of months, about that. Brian Dobson That's very exciting. Thank you very much. Operator Thank you. Our next question comes from Mike Grandl with Northland Securities. Mike Grondahl Hey guys, good morning, I think what you were describing is a delay for customer one from June 30 to August 20. One, can you talk a little bit about why, and then I think you were saying how you were going to use maybe those GPUs for your. Own book, just kind of walk us through the options you have there. Sam Tabar Yeah, I think the the maximum allowable date is the date they've exercised and as you mentioned, Mike, we have the cluster to honor what they're looking for so that's a, that's a good thing since we already have that cluster and we could just use that if we don't score a multi-year contracts for that current inventory. Is your question about why they shifted? Yeah, why they shifted. Mike Grondahl And then if so what you're saying is, hey, the GPUs might not sit idle until August if you can put them in a new customer win. Sam Tabar Correct. Got it. But as for the reasons for shifting, I, I'm not familiar. Eric, do you have any color on the reasons they're shifting the start date for two months? Erke Huang Yeah, I think it has some internal, product development schedule change. So I like to, they still want those computes, but they like to, you exercise the option to extend. At a little, later date. And we had installed and deployed those equipments in our Atlantic, data center already. So right now, we can sell those computes, and I know B is working on that. There's a few kind of parties we're negotiating with for multi-year contracts, and On top of that, we're putting this B20 compute on on demand, platform through shape form as well. So it's already generating some revenue. Okay. Mike Grondahl Great, thank you. Operator Thank you. Our next question comes from Nick Giles with BR Riley Securities. Sam Tabar Hi Nick. Thank you. Nick Giles Operator. Good morning, everyone. Guys, it's good to see you further expand into the US, with the North Carolina agreement. So my first question is how should we think about your desire to, continue that expansion in the US versus Canada? And secondly, apologies if I missed this, but can you just outline when those megawatts could be available, what the ramp will ultimately look like, and CapEx expectations. Sam Tabar Yeah, well, look, as we disclosed in an AK that we signed the purchase agreement to acquire a roughly 95 acre property in in North Carolina. The transaction remains subject to some closing conditions, so it's too early for us to provide additional detail until it closes, but, I can tell you I'm deeply excited about its potential strategic significance. And we will definitely update you and the markets as soon as if this closes. The deal isn't closed, so there isn't much we can say, or frankly or what you know what we want to say until something is finalized in either in either direction. But to your question about the broader co-location development pipeline. We're evaluating and negotiating over 500 megawatts of additional potential capacity across Canada and the US. These sites range from small sites in the 5 to 2020 megawatt range to sites with over 100 megawatts, and we continue to target those sites in adjacent to market cities or improving corridors of customer demand. That's really important for us geographically. We focus on retrofits, so we look at sites that aren't currently configured as data centers but would lend themselves well to redevelopment and reduce costs and timelines relative to a greenfield site and the team that we have. When we acquired any of them, last year, it wasn't just about an acquisition of a tier 3 data center, but more importantly, it was about a team that's been doing this their entire careers and also a huge pipeline that they've identified through LOIs and through a lot of work, but 500 500 megawatts worth. So they, the secret sauce with respect to that particular acquisition. Was their experience in retrofit and how they could do it faster and cheaper and they have a track record of doing it faster and cheaper and this is really the secret sauces we're we're not trying to sort of figure it out as we go. We have acquired a team that's been doing this for a long time before this sector got hot. So, we're really looking forward to developing that co-location pipeline. And, there'll be some exciting, definitely some exciting announcements in the medium term future, if not the near term future. Same, I appreciate. Nick Giles All the color and. Sam Tabar Look forward to the updates. Likewise. Thank you for asking. Operator Thank you. Our next question comes from Joe Gomes with Noble Capital. Joe Gomes Good morning, just wanted to kind of. Get your your thoughts and if I look through the 10 this morning and. You, you've got 33 million on the balance sheet of investments, and at the same time you're raising equity, and just trying to get, your thought on, how do you weigh that is it. More is it a better opportunity to to liquidate those investments and not have to sell so many shares in the ATMs, just trying to get your thought process on that. Sam Tabar Yeah, absolutely. So the recent filing was a mechanical renewal just to maintain flexibility and optionality. It doesn't reflect the change in our posture towards selective and strategic use of equity issuance. We understand, I completely understand, the optics are not great given the size of the ATM relative to our market cap. The market cap is transitory. Having the ATM on file is really just a tool we have access to. It's worth more to have that optionality in future years than to forego in favor of optics. But look, liquidity is critical for executing strategic initiatives and building customer confidence as mentioned on my, on the call earlier. We do balance raising equity with selling digital assets to fund growth responsibly. We did sell some Bitcoin. Fortunately, we did not sell any E. As that EE has had a really great run. And we're still pretty strong believers. There's a lot of juice in there, but. We also are very excited to announce mortgage financing, which is really inexpensive capital in order to fund the growth of our data center business, and we look forward to announcing the terms of that mortgage financing very soon and that will really help with respect to how we. Fund our growth. We want to use cheap sources of financing. We do not want to use the ATM. But it has to be an option. Thanks. Operator Thank you. Before we take our next question, just a reminder to our audience that is one to ask a question. Our next question comes from Kevin Dee with HC Wainwright. Sam Tabar Hi, Kevin. Kevin Dee Hi, good morning, SAM, Eric, thanks for having me on the call. Apart, Eric mentioned changing the depreciation schedule, but apart from that, SAM, can you walk through. The levers that you can pull or the variables that you see changing the gross margin profile of your cloud and colo business and maybe layer in a little discussion on the GPU procurement strategy and filling the shade form and DNA fund business. Sam Tabar There's a few questions there. Let me rephrase a couple of those questions with respect to. I'm not sure if it was a question or a comment about changing the depreciation schedule, but 3 years was just overly conservative and way too aggressive. If you look at others in the industry, they do 5, some even do more than 5, so even being at 5 at this point is still, we believe, responsible and conservative. I think the next question you had in there was. Or how, what are the different levers to increase the margins of our cloud business and our data center business? Is that what I, is that correct? Kevin Dee Yes, absolutely, SAM, thank you very much. I apologize for the the the connection that I'm working with here. Sam Tabar Yeah, no, all good, I mean, besides charging more, of course, to the customers, I'd love for, Billy to weigh in on the different levers, to increase, margins. And then I go ahead I can. Cameron Schnier Jump in SAM, I mean Kevin, the biggest thing on the cloud side, is really just spreading the operating lease for for our anchor customer over a larger revenue base because that's one of the major. COGS items right now and it's, effectively a financing structure but it's above the line, so just getting more revenue. Like the absorption across that will naturally drive gross margin up. So any increase in revenues, broadly gross margin accretive, bill can add in on the data center side, but I think the way we look at it is pretty much every leading edge contract that we sign and revenue that goes on will lift gross margins as well. Billy Krassakopoulos On the data on the data center side, margins are very predictable, and can be relied on long-term contracts with clients who are very sticky. Give us great insight on what the numbers will be over the next couple of years. We're aiming for minimum 5 year contracts on that segment. So, the predictability and the reliability of those are very certain. Kevin Dee Yes SAM could you just touch on your procurement thinking your GPU procurement thinking? I mean, I know in the past you both. Bought and leased. I'm just wondering if that thinking and philosophy is altered in any way. Sam Tabar I think Eric is closer to that work stream than I am, so I'd love to. The procurement for on the cloud side just to clarify which side of the business are you referring to procurement for equipment for data centers or procurement for the GPUs. Kevin Dee Yeah yeah GP yeah GPU for cloud, right, because you're. Big digital is responsible providing a compute for both shade form and DNA at least as I understand it. Sam Tabar Yeah. Erke Huang Yeah we do yeah. Yeah, we still remain, the same strategy, TRY to, sign contracts and tied to a procurement, so that you minimize our exposure to speculative procurement. But at the same time, we did, And procure some GPUs prior of signing a deficit, definitive agreements, that would allow us to do some R&D and do some, benchmarking and testing, as well. So we had completed our deployments in Iceland. Right now, there's a couple of deployment we're working on in Canada, and, different sites, as well. And the higher level, if I may, add, and a higher level, if I may add, we tend to procure those, most advanced, technologies or GPUs, and which are more attractive to end users at early stage as well. And we had those relationships with the OEMs and the media, to get those chips at a faster or more accelerated timeline. Kevin Dee Right, thank you, appreciate it. Thanks, SAM. Erke Huang Yeah, thank you. Operator Thank you. It appears that we have no further questions at this time, Mr. Tabar. I'll hand the call back to you for closing remarks. Sam Tabar Okay, well then, that's it then. Thank you for joining us on the call today, everybody. We appreciate your continued interest and support. We look forward to speaking with you again in the next quarter. This officially concludes our call and have a great day, everybody. Operator This concludes today's call. Thank you for your participation. You may now disconnect. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
Bit Digital Inc (BTBT) Q1 2025 Earnings Call Highlights: Navigating Revenue Challenges with ...
Total Revenue: $25.1 million, a 17% decrease year over year. Bitcoin Mining Revenue: $7.8 million, down 64% year over year and 26% sequentially. Cloud Services Revenue: $14.8 million, up 84% year over year and 14% sequentially. Co-location Revenue: $1.6 million, up from $1.4 million in the previous quarter. Gross Margin: 49%, compared to 47% in the same quarter last year. Cloud Services Gross Margin: 59%, up from 52% last quarter. Co-location Services Gross Margin: 67%. Adjusted EBITDA: Negative $44.5 million, compared to positive $58.5 million in the first quarter of 2024. Net Loss Per Share: $0.32 on a fully diluted basis. Cash and Cash Equivalents: $57.6 million as of March 31. Digital Assets Market Value: Approximately $80 million as of March 31. Total Assets: $485 million. Shareholders' Equity: $417 million. CapEx: $65 million for the quarter. Warning! GuruFocus has detected 5 Warning Signs with BTBT. Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cloud services revenue increased by 84% year over year and 14% sequentially, reaching $14.8 million. Mining operations remained gross margin positive, with margins expanding approximately 500 basis points sequentially to 21%. The company is actively engaged in several large contract discussions, each with an annualized revenue potential above $100 million. Bit Digital Inc (NASDAQ:BTBT) is investing in proprietary software development to enhance platform capabilities, including the launch of an API layer for external provisioning. The company remains debt-free, with a strong liquidity position of approximately $141 million, including digital assets and USDC. First quarter 2025 revenue from the mining segment decreased 64% year over year and 26% sequentially. Bitcoin mining production declined 80% year over year to 83 Bitcoins for the quarter. Total revenue for the quarter was $25.1 million, a 17% decrease compared to the same quarter last year. Adjusted EBITDA was negative $44.5 million, primarily due to a $49.2 million mark-to-market loss on digital asset holdings. The company raised approximately $48 million through the ATM program post-quarter end, which may raise concerns about equity dilution. Q: Can you provide an update on the white fi rebranding and any new platform initiatives? A: The rebranding has been well received, with positive feedback on the new website. We are working on platform initiatives, including first-to-market technology, with announcements expected in the coming weeks. We are also developing cross-data center workloads, which we believe will be revolutionary. Q: How do you see demand from hyperscalers and enterprise users evolving over the next 6 months? A: We are seeing strong demand from both hyperscalers and medium-sized neo-clouds for capacity expected to come online later this year. We anticipate providing updates in the next few months. Q: Can you explain the delay for customer one from June 30 to August 20 and the options for using GPUs? A: The customer exercised their option to delay due to internal product development schedule changes. We have the cluster ready and are negotiating multi-year contracts with other parties. The GPUs are generating revenue through on-demand platforms. Q: How should we think about your expansion in the US versus Canada, and what are the expectations for the North Carolina site? A: We are evaluating over 500 megawatts of potential capacity across Canada and the US. The North Carolina site is subject to closing conditions, and we will provide updates once finalized. Our focus is on retrofits to reduce costs and timelines. Q: How do you weigh raising equity versus liquidating investments, and what is your financing strategy? A: The ATM filing is a mechanical renewal for flexibility. We balance equity raising with selling digital assets to fund growth responsibly. We are excited about announcing mortgage financing to fund data center growth, preferring cheap financing sources over the ATM. Q: What levers can change the gross margin profile of your cloud and colo business, and what is your GPU procurement strategy? A: Increasing revenue will naturally drive gross margins up. We aim for long-term contracts for predictability. Our GPU procurement strategy aligns with contracted demand to minimize speculative risk, focusing on advanced technologies attractive to end users. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
