Bit Digital stock climbed after the company reported a $107.2 million net loss for the second quarter, breaking from the sell-off that punished rival crypto-linked shares this week.

The Nasdaq-listed Ethereum (ETH) treasury and artificial intelligence (AI) infrastructure firm booked $32.1 million in revenue. That marks a 15% gain over the first quarter.

Investors Look Past Bit Digital’s Quarterly Loss

Investors appeared to focus on the operating line rather than the headline loss. The stock added 2.05% to close at $1.49 on Thursday, then gained another 1.34% to $1.51 after hours.

Follow us on X to get the latest news as it happens

That reaction stood apart from the rest of the week’s crypto earnings slate. Bitdeer slid roughly 20% after its August 10 report, while Forward Industries fell 1.36% after hours despite closing the session higher.

The pattern was also observed earlier in other major crypto equities such as Coinbase, MARA Holdings, and CleanSpark.

Roughly $86 million of Bit Digital’s loss came from non-cash digital asset movements and non-operating items. That included a $46 million impairment on liquid staked ETH, which the company says was not a realized loss.

The loss also narrowed. Bit Digital lost $146.7 million, or $0.45 per diluted share, in the first quarter. This quarter’s figure was $0.31 per share.

Meanwhile, the operating businesses grew. Cloud services revenue climbed 42% to $23.8 million at a gross margin near 58%. Group gross profit reached $18.6 million.

Ethereum Treasury Now Funds the AI Business

Bit Digital held 164,310.5 Ethereum as of June 30. It bought 8,568 ETH for $20 million on May 11 and sold none during the quarter. The company raised $50 million against a portion of that treasury.

It also used its own balance sheet to commit up to $150 million to WhiteFiber through a delayed draw facility for the NC-1 data center campus. Bit Digital’s 27 million WhiteFiber shares carried an implied value of nearly $1.05 billion at quarter-end.

CEO Sam Tabar argued the market has not caught up to that shift.

“Our operating results improved through the quarter. Our valuation did not. The market continues to value Bit Digital primarily as a passive digital asset treasury, and the Board is currently evaluating our options to address that disconnect,” he said.

WhiteFiber has signed new multi-year cloud agreements worth more than $540 million in aggregate contract value since its last earnings call. Tabar said the wider portfolio should produce over $200 million in annualized revenue once fully deployed.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights

Source: BeInCrypto