Revenue growth of 7.8% in 2025Q2 is overshadowed by an operating margin of -87.7%, indicating that corporate overhead significantly outpaces gross profit generation.
| Sales/Revenue | 48.03M | 11.68M | 9.07M | 81.6M | 729M | 897.03M | 1.45B | 1.42B |
| Revenue Growth % | 290.47% | 28.68% | -88.88% | -88.81% | -18.73% | -38.05% | 1.66% | - |
| Cost of Goods Sold | 57.05M | 11.56M | 10.21M | 69.41M | 483.7M | 607.08M | 755.36M | 628M |
| COGS % of Revenue | - | 99.02% | 112.51% | 85.06% | 66.35% | 67.68% | 52.17% | 44.09% |
| Gross Profit | -9.02M | 115K | -1.14M | 12.19M | 245.29M | 289.96M | 692.54M | 796.24M |
| Gross Margin % | -18.78% | 0.98% | -12.51% | 14.94% | 33.65% | 32.32% | 47.83% | 55.91% |
| Gross Profit Growth % | - | 110.13% | -109.31% | -95.03% | -15.4% | -58.13% | -13.02% | - |
| Operating Expenses | 28.22M | 2.79M | 1.35M | 4.97M | 602.75M | 662.62M | 914.45M | 736.74M |
| OpEx % of Revenue | - | 23.92% | 14.84% | 6.09% | 82.68% | 73.87% | 63.16% | 51.73% |
| Selling, General & Admin | 28.22M | 2.79M | 1.35M | 4.97M | 1.06M | 658.87M | 887.89M | 718.37M |
| SG&A % of Revenue | - | 23.92% | 14.84% | 6.09% | 0.15% | 73.45% | 61.32% | 50.44% |
| Research & Development | 0 | 0 | 0 | 0 | 2.89M | 4.88M | 32.33M | 26.18M |
| R&D % of Revenue | - | - | - | - | 0.4% | 0.54% | 2.23% | 1.84% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 598.8M | -1.13M | -5.77M | 1.65M |
| Operating Income | -37.24M | -2.68M | -2.48M | 7.22M | -6.76M | -8.16M | -227.68M | 51.69M |
| Operating Margin % | -77.53% | -22.94% | -27.34% | 8.85% | -0.93% | -0.91% | -15.72% | 3.63% |
| Operating Income Growth % | - | -7.94% | -134.35% | 206.82% | 17.11% | 96.42% | -540.5% | - |
| EBITDA | -21.16M | 1M | 670K | 12.74M | 10.55M | 19.61M | -34.4M | 106.63M |
| EBITDA Margin % | -44.07% | 8.59% | 7.38% | 15.62% | 1.45% | 2.19% | -2.38% | 7.49% |
| EBITDA Growth % | -2001.51% | 49.7% | -94.74% | 20.8% | -46.2% | 157.01% | -132.26% | - |
| D&A (Non-Cash Add-back) | 16.07M | 3.68M | 3.15M | 5.52M | 17.31M | 27.77M | 193.28M | 54.94M |
| EBIT | -36.78M | -1.94M | -2.76M | 987K | -1.9M | -1.8M | -30.44M | 9.87M |
| Net Interest Income | 976.66K | -48K | -62K | -20K | -324K | 765 | -117.2K | 166.01K |
| Interest Income | 0 | 0 | 1K | 0 | 53K | 765 | 1.63M | 1.15M |
| Interest Expense | 33K | 48K | 63K | 20K | 377K | 0 | 2.45M | 8K |
| Other Income/Expense | 1.75M | 689K | -343K | -46.48M | -5.34M | -3.63M | 196.88M | -41.82M |
| Pretax Income | -35.49M | -1.99M | -2.82M | -39.26M | -12.1M | -11.79M | -215.46M | 67.9M |
| Pretax Margin % | -73.89% | -17.04% | -31.13% | -48.11% | -1.66% | -1.31% | -14.88% | 4.77% |
| Income Tax | 0 | 0 | 0 | -45.92M | 0 | 0 | 9.61M | 14.45M |
| Effective Tax Rate % | 0% | 0% | 0% | 116.99% | 0% | 0% | -4.46% | 21.29% |
| Net Income | -35.49M | -1.99M | -2.82M | 53.01M | -384.3M | -410.99M | -219.4M | 57.25M |
| Net Margin % | -73.89% | -17.04% | -31.13% | 64.97% | -52.72% | -45.82% | -15.15% | 4.02% |
| Net Income Growth % | -1461.99% | 29.57% | -105.33% | 113.79% | 6.49% | -87.32% | -483.21% | - |
| Net Income (Continuing) | -35.49M | -1.99M | -2.82M | 6.67M | -12.1M | -11.79M | -32.17M | 7.77M |
| Discontinued Operations | 0 | 0 | 0 | 32.21M | -374.19M | -400.99M | 0 | 1 |
| Minority Interest | 0 | 0 | 0 | 0 | 14.13M | 16.13M | 17.93M | 23.74M |
| EPS (Diluted) | -5.00 | -0.01 | -0.04 | 15.10 | -5.11 | -74.90 | -54.41 | 12.12 |
| EPS Growth % | -22114.41% | 60.85% | -100.25% | 395.5% | 93.18% | -37.66% | -548.93% | - |
| EPS (Basic) | - | -0.01 | -0.04 | 0.94 | -4.51 | -88.60 | -54.41 | 12.48 |
| Diluted Shares Outstanding | 7.09M | 6.74M | 3.74M | 2.81M | 2.16M | 274.34K | 201.63K | 195.82K |
| Basic Shares Outstanding | 7.09M | 6.74M | 3.74M | 2.81M | 2.16M | 231.92K | 201.63K | 236.19K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Operational Viability and Dilution
According to recent financial disclosures, BTCT's revenue growth has fluctuated significantly, with a 7.8% increase in 2025Q2, yet this top-line activity appears disconnected from sustainable operational output as the company pivots away from its legacy education business toward highly cyclical cryptocurrency mining and hardware resale activities.
The recent revenue growth appears to be driven by transactional hardware sales rather than consistent, recurring mining rewards. Investors should monitor whether this top-line expansion is merely a liquidation of assets, as the lack of a stable growth base suggests the current trajectory may be unsustainable.
As reported in quarterly filings, the company's gross margin has deteriorated to -22.9% in 2025Q2, indicating that the cost of revenue is consistently exceeding the value generated by mining operations and hardware sales, a trend that highlights severe competitive disadvantages in the current mining environment.
The inability to maintain positive gross margins suggests that the company's mining fleet may be inefficient or that hosting costs are prohibitively high. This structural margin failure implies that the business model is currently unable to cover its direct production costs, let alone administrative overhead.
Based on the provided income statement data, SG&A expenses of $13.3 million in 2025Q2 dwarf the negative gross profit, resulting in an operating margin of -87.7% and suggesting that the company is burdened by an oversized corporate structure inherited from its previous operational life.
The lack of operating leverage is evident as administrative costs remain high despite the pivot to a leaner mining model. This suggests that the company has not successfully rightsized its cost base, leaving it vulnerable to continued cash depletion as it attempts to scale its new operations.
Financial statements reveal that stock-based compensation of $913.5K in 2025Q2 continues to dilute shareholders despite persistent net losses, which warrants further investigation into the alignment between management incentives and the company's actual ability to generate positive cash flow from its core mining activities.
The reliance on equity-based compensation during a period of deep operating losses suggests a disconnect between executive rewards and fundamental performance. Investors should be wary of the impact this dilution has on per-share value, especially given the company's inability to achieve profitability.
Analysis of the company's transition suggests that the market may be overestimating the value of the remaining cash position, as the consistent operating losses and negative gross margins indicate that the business may be consuming capital faster than it can establish a viable mining footprint.
Short-term revenue spikes from hardware resale may mask the underlying reality that the company lacks the scale and efficiency of its peers. The risk remains that the company will continue to burn through its cash reserves, necessitating further dilutive financing to sustain operations.
Quick answers to the most common questions about buying BTCT stock.
For fiscal year 2024, BTC Digital Ltd. (BTCT) reported total revenue of $11.7M. This represents a 99.2% decline compared to $1.42B in 2018.
BTC Digital Ltd. (BTCT) reported a net loss of $2.0M for the fiscal year ending 2024.
BTC Digital Ltd. (BTCT) reported an operating income of $-2.7M, resulting in an operating profit margin of -22.9%. This margin reflects the operational efficiency of the business before interest and taxes.
BTC Digital Ltd. (BTCT) generated $0.1M in gross profit for the year, representing a gross profit margin of 1.0%. This demonstrates the company's core pricing power and production efficiency.