Bit Digital’s third quarter produced a headline earnings beat that says less about the business than the numbers suggest. Earnings Whispers normalized EPS was $0.06 against a consensus loss of $0.05, a 220.0% surprise and 220.0% year-over-year growth. The company’s own GAAP figure was higher at $0.08 per diluted share, or $28.5 million attributable to shareholders, compared with a $107.2 million loss in the second quarter. Revenue told a different story. Sales of $27.07 million missed the $34.52 million consensus by 21.6% and fell 11.2% from a year ago. That is the central tension: the swing to profit came from the balance sheet, while the operating top line went backward.

The quality of the beat deserves scrutiny….