Bit Digital scrambles for $500M war chest as Bitcoin mining gets squeezed—pivots to cloud services before the halving hits harder

When the mining margins get thin, the thin get innovating. Bit Digital—once a pure-play Bitcoin miner—is now betting half a billion dollars that cloud infrastructure will be its lifeline as block rewards dwindle.

The pivot: A classic ’adapt or die’ move in an industry where yesterday’s cash cow is tomorrow’s stranded asset. Their timing? Either brilliant or desperate—ask again after the next Fed meeting.

The subtext: When your core business depends on electricity arbitrage and volatile crypto prices, even Wall Street starts calling it ’creative destruction.’

Mining companies diversify to adjacent sectors

In response, many mining companies have pursued equity offerings, debt financing, or convertible notes to support operations and pivot into adjacent sectors like AI and HPC. In the fourth quarter of 2024 alone, public mining companies raised over $1.6 billion via equity financing and more than $4.6 billion via debt financing.

Bit Digital’s pivot involves investments in HPC and cloud services. In October 2024, the company acquired Enovum Data Centers, a Tier 3 HPC data center operator, for approximately CAD $62.8 million (USD $46 million).

Additionally, Bit Digital entered into a master service agreement (MSA) with Boosteroid Inc., one of the largest cloud gaming providers, in August 2024. The agreement initiated an initial deployment of 300 GPUs expected to generate approximately $4.6 million in revenue over five years.

Cloud and HPC services to the rescue as mining falters

For its 2024 fiscal year report, Bit Digital reported a total revenue of $108.1 million, a 141% increase from the prior year’s results. Bit Digital attributed the increase to the commencement of its HPC services business. The company’s liquidity stood at approximately $260.7 million, with shareholders’ equity of $463.5 million.

It also made $58.6 million from Bitcoin mining, which was a 32% increase from 2023. Cloud services accounted for $45.7 million in 2024. Thanks to its acquisition of Enovum Data Corp, it made $1.4 million from colocation services. Its ETH staking revenue increased by 169% after it brought in $1.8 million in revenue.

Digital Asset mining accounted for 54% of Bit Digital’s revenue source in 2024, which is a major contrast from 2023, where it was responsible for 98% of the company’s revenue.

Bit Digital’s HPC business lines, along with its cloud services, generated 42% of its revenue for 2024, with a major portion of the haul coming during the fourth quarter of the year.

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