Shares of Bitcoin miner Bit Digital surged 7% after the company announced a remarkable 140% revenue increase for 2024, driven by the rapid growth of its cloud services sector.
Bit Digital’s recent financial disclosures indicate a significant transformation in its revenue structure, highlighting the rising contributions of its cloud services and high-performance computing (HPC) ventures. The company reported total revenues of $108.1 million for 2024, marking a 141% surge over the previous year.
Management attributed this increase to the successful expansion of its HPC operations. Notably, the cloud services segment alone contributed $45.7 million, a new addition to the company’s portfolio that didn’t exist just a year prior.
“Profitability improved alongside business expansion, supported by stronger gross margins and operational efficiencies. A robust liquidity position and absence of debt afford us the flexibility to invest strategically, enhancing our capabilities and long-term competitiveness.”
In terms of Bitcoin (BTC) mining, the company reported a 32% increase in revenue, totaling $58.6 million. However, Bitcoin’s share of overall revenue decreased significantly from 98% in 2023 to 54% in 2024. The company also reported a turnaround in profitability with a net income of $0.19 per share, compared to a loss of $0.16 per share the previous year.
Bitcoin Revenue Challenges
Despite these gains, operational data presents a mixed picture, with Bit Digital mining 949.9 BTC in 2024, a decrease of 37% from 2023. This decline highlights the challenges posed by events such as the April halving and increasing network difficulty. Conversely, revenue from Ethereum (ETH) staking surged 169% to $1.8 million.
The company’s cloud services expansion continues, with new agreements established with industry partners. A forthcoming data center project in Quebec, which will utilize hydroelectric power, is also in development.
“Bit Digital plans to invest approximately $19.3 million to develop the new site, with potential to expand to 13MW within 24-36 months, pending approval from Hydro-Quebec.”
While Bit Digital reported enhanced profitability, the company is actively exploring “cost-effective financing options.” With a strong liquidity status and no debt, maintaining financial discipline remains a priority. Following these announcements, Bit Digital’s shares increased to $2.41, reflecting market optimism.
