Bit Digital NASDAQ: BTBT reported a sequential decline in first-quarter revenue as management said the company continued shifting its business away from legacy Bitcoin mining and toward Ethereum treasury and staking, AI infrastructure and recurring cash-flow opportunities.
On the company’s first-quarter 2026 earnings call, Chief Executive Officer Samir Tabar said Bit Digital’s current strategy is centered on three areas: Ethereum treasury and staking, AI infrastructure through its WhiteFiber holding, and “building durable cash flow through disciplined capital allocation.”
“We believe these businesses complement each other,” Tabar said. “Ethereum provides long-term treasury exposure and staking yields. WhiteFiber provides exposure to AI infrastructure and compute demand.”
Revenue Declines From Fourth Quarter
Chief Financial Officer Erke Huang said total revenue for the first quarter was $27.9 million, down 13.7% from $32.3 million in the fourth quarter of 2025. The company’s revenue mix continued to move away from mining and toward cloud services, colocation, staking and treasury-related activities.
Huang provided the following breakdown of quarterly revenue:
- Cloud services revenue: $16.8 million, down 13.1% quarter over quarter.
- Colocation services revenue: $4.8 million, up about 23.9% quarter over quarter.
- Ethereum staking revenue: $2.3 million, down roughly 29.4% quarter over quarter.
- Digital asset mining revenue: $3.7 million, down just under 33% quarter over quarter.
Huang said the decline in Ethereum staking revenue reflected lower average Ethereum prices and lower natively staked balances. The decline in digital asset mining revenue reflected lower Bitcoin production and lower average Bitcoin prices during the quarter.
Bit Digital reported a net loss of $146.7 million for the first quarter, compared with a net loss of $185.3 million in the fourth quarter of 2025. Huang said results continued to be affected by non-cash mark-to-market adjustments on digital assets.
Ethereum Holdings Remain Central to Strategy
As of March 31, Bit Digital held approximately 155,444.41 Ethereum. Based on a closing Ethereum price of about $2,104 on March 31, Huang said the market value of the company’s Ethereum holdings was $327 million. The average acquisition price for all Ethereum holdings was approximately $3,045 as of the same date.
As of April 30, the company held approximately 155,461 Ethereum with a blended acquisition cost basis of about $3,028 per Ethereum. Approximately 60,677 Ethereum remained natively staked as of that date.
Tabar said the company continues to view Ethereum as “foundational infrastructure for digital assets and on-chain financial activity.” He said Bit Digital is focused on increasing Ethereum per share over time while maintaining balance sheet flexibility and capital efficiency.
Tabar also said Bit Digital was approved during the quarter by the Ethereum Foundation to purchase Ethereum directly from the foundation, which he described as “an important validation of our long-term commitment to the ecosystem.” He said the company expects to provide “a material update” on its Ethereum treasury strategy in the near term.
WhiteFiber Seen as Long-Term AI Infrastructure Holding
Management emphasized that WhiteFiber remains a core strategic asset for Bit Digital. Tabar said demand for AI compute continues to exceed available supply and that the company expects those constraints to persist.
“We continue viewing WhiteFiber as a long-term holding and do not intend to monetize the position in 2026,” Tabar said.
Bit Digital held approximately 27 million WhiteFiber shares at the end of March 2026, with a market value of approximately $322.1 million, according to Tabar. He said the company believes AI and Ethereum are converging and that compute itself is becoming scarce and valuable enough to emerge as “a new asset class.”
Huang said cash and cash equivalents were $79.5 million as of March 31, down from $118.4 million as of Dec. 31, 2025. Digital assets totaled $295 million at quarter-end, compared with $415.7 million at the end of 2025. Huang said that decline primarily reflected a lower Ethereum price at quarter-end rather than reductions in holdings.
Convertible notes increased to $334 million, with the increase driven by notes issued by WhiteFiber that are consolidated in Bit Digital’s financial statements, Huang said.
Mining No Longer a Growth Priority
Tabar said Bit Digital continued reducing its exposure to Bitcoin mining during the quarter. While mining remains cash-flow generative, he said it is “no longer a strategic growth priority.”
“Capital will continue shifting towards Ethereum and infrastructure-related opportunities,” Tabar said.
Huang said the company’s financial profile continues to evolve toward infrastructure, staking and treasury management, with reduced contribution from legacy Bitcoin mining operations.
Management Discusses Acquisitions and Capital Allocation
During the question-and-answer portion of the call, B. Riley Securities analyst Nick Giles asked about potential strategic acquisitions and how management views valuation while Bit Digital trades at a discount to market net asset value.
Tabar said compressed valuations in crypto-related businesses could create buying opportunities, adding that the company is in “a good position with our balance sheet” to buy a strategically aligned business that would add revenue. He said possible targets could include a trading or market-making firm, an Ethereum-adjacent infrastructure company, or a company involved in the agentic economy, where management sees an intersection between Ethereum and AI.
When asked whether the company would likely use cash rather than stock while trading at a discount to NAV, Tabar said that was “a fair summary,” and Huang agreed.
Craig-Hallum analyst George Sutton asked about leverage and potential financing options. Huang said leverage remains a key consideration and that the company continues to use a 20% metric when evaluating whether to add leverage. He also said equity remains another financing tool, particularly as acquisition targets emerge.
Asked by Clear Street’s Brian Dawson what Bit Digital could look like in two years, Tabar said the company expects the intersection of AI and Ethereum to remain important. He pointed to agentic AI and said Ethereum could serve as a natural venue for counterparties to interact and transact.
“We’d like to continue digging in on that theme, and we think that theme will only grow stronger over the next two years,” Tabar said.
About Bit Digital NASDAQ: BTBT
Bit Digital, Inc NASDAQ: BTBT is a publicly traded digital asset mining company that specializes in the proof-of-work mining of Bitcoin. Incorporated in Nevada and headquartered in New York City, Bit Digital develops, owns and manages a fleet of high-efficiency ASIC miners, with the primary aim of generating newly minted Bitcoin through computational work. The company's revenue is derived solely from its mining operations and any resulting cryptocurrency holdings.
To support its mining activities, Bit Digital maintains multiple data center facilities across North America.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Bit Digital, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Bit Digital wasn't on the list.
While Bit Digital currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Unlock the timeless value of gold with our exclusive 2026 Gold Forecasting Report. Explore why gold remains the ultimate investment for safeguarding wealth against inflation, economic shifts, and global uncertainties. Whether you're planning for future generations or seeking a reliable asset in turbulent times, this report is your essential guide to making informed decisions.
Get This Free Report
