Bit Digital reports $28.5 million Q3 profit as revenue falls

Bit Digital reported third-quarter net income of $28.5 million, even as revenue fell 11% from a year earlier and missed analyst estimates by about $5.1 million. Its shares fell about 9% in premarket trading on November 12 after the results were reported.

The company recorded revenue of $27.1 million for the quarter, compared with $30.5 million in the same period last year. Analyst consensus estimates cited in reporting were about $32 million to $32.2 million. Net income attributable to shareholders was 8 cents per diluted share, reversing a $107.2 million loss in the second quarter.

Bit Digital said digital-asset gains, impairments and other nonoperating items contributed $16.3 million to quarterly income. The company’s earnings therefore included a substantial contribution from items other than its operating revenue. It reported gross profit of $15.2 million and a 56.1% gross margin.

Cloud services generated $18.1 million, little changed from a year earlier, while colocation revenue rose 232% to $5.6 million. Bitcoin mining revenue declined to $2 million from $7.4 million a year earlier. Bit Digital attributed the mining decrease to its continuing winddown of that business and...