Bit Digital reports Q3 adjusted EPS (3c), consensus (6c)

Reports Q3 revenue $11.6M, consensus $11.87M. The company earned 403.1 bitcoins during the quarter, a 27% increase from the prior quarter, and 115.2ETH in native staking and 24.1 ETH in liquid staking, respectively. “Total revenue increased by 28% sequentially during Q3, primarily driven by a 27% sequential increase in bitcoin production. Growth was enabled by an increase in active hash rate, with our ongoing miner deployment program leading us to achieving the milestone of an active hash rate above 2.0EH/s during the quarter for the first time in company history. Our margins compressed during the quarter primarily due to a seasonal spike in electricity costs, which affected certain variable-rate contracts at hosting facilities in the U.S…We anticipate material growth in active hash rate through the duration of 2023, though we now expect that our 3.5 EH/s target will be achieved during Q1 2024…Subsequent to quarter-end we announced the launch of Bit Digital AI, a new business line that will provide specialized infrastructure to support generative AI workstreams…Revenue for the initial contract is expected to commence in January 2024, and we are confident that we can materially scale the business with the necessary financial resources.”