Net Loss More Than Doubles to $150M in Q1 on Digital Asset Losses; Raises $230M in Convertible Debt

summarizeSummary

Bit Digital's Q1 net loss more than doubled to $150.3 million, driven by significant digital asset losses, despite revenue growth in its cloud and colocation segments. The company secured $230 million in convertible debt and continues share offerings to support its operations and strategic transition.

check_boxKey Events

• Net Loss Worsens Significantly

  Net loss increased to $150.3 million in Q1 2026 from $57.7 million in Q1 2025, primarily due to $121.1 million in digital asset losses.

• Operating Cash Flow Turns Negative

  Net cash used in operating activities was $1.1 million in Q1 2026, a reversal from $17.4 million provided in Q1 2025.

• Substantial Convertible Debt Issuance

  Issued $230 million in 4.50% convertible senior notes due 2031 in January 2026, providing $222.1 million in net proceeds, but increasing long-term debt.

• Ongoing Share Dilution

  Sold 2.4 million ordinary shares for $4.1 million net proceeds in Q1 2026, with an additional 22.8 million shares sold for $33.9 million post-quarter end via an at-the-market offering.

auto_awesomeAnalysis

Bit Digital reported a significantly wider net loss in Q1 2026, primarily due to substantial losses on its digital asset holdings. While the company saw revenue growth in its cloud and colocation services, its core digital asset mining revenue declined. The company raised $230 million through convertible notes and continues to dilute shareholders via an at-the-market offering to fund operations and strategic shifts towards Ethereum staking and HPC.