Bit Digital Earned More Revenue from HPC Than Bitcoin Mining in Q3
New York-based Bit Digital (NASDAQ: BTBT) has, for the first time, generated more revenue from high-performance computing (HPC) hosting than from Bitcoin mining, marking a shift in its business focus following the Bitcoin Halving.
In its third-quarter earnings report, Bit Digital reported $12.2 million in HPC revenue, compared to $10.1 million from Bitcoin mining. While HPC revenue remained steady quarter-over-quarter, the decline in mining revenue—down 37.5% from Q2—was attributed to the Bitcoin Halving, which cut block rewards, and increased mining difficulty.
The company’s realized hashrate has declined year-to-date, falling from 2.77 EH/s in January to 2.36 EH/s in October, reflecting challenges posed by the Halving and heightened competition as peers scaled their mining capacities.
Bit Digital is also grappling with potential disruptions to its mining operations. As of September 30, the company was hosting 46 megawatts (MW) of capacity with New York-based Coinmint, with 36 MW located in Coinmint’s Massena facility and the remaining 10 MW in Plattsburgh.
However, Bit Digital noted in its earnings release that Coinmint has decided not to renew the 36 MW colocation agreement in Massena beyond December, affecting approximately 1.3 EH/s of Bit Digital’s operating hashrate of 2.4 EH/s.
This decision appears to be aligned with Coinmint’s broader strategic plans for the Massena facility. The company recently announced a strategic investment from Bitcoin asset management firm NYDIG, signaling an expansion of its own operations. Coinmint has similarly declined to renew colocation agreements with other public miners, including CleanSpark and Gryphon.
