Bit Digital, Inc. Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Bit Digital (Nasdaq: BTBT) reported Q1 2026 revenue of $27.9 million, down 13.6% from Q4 2025, reflecting lower cloud, ETH staking, and digital asset mining revenue.
Net loss attributable to shareholders was $146.7 million, while adjusted EBITDA was $(9.4) million. Segment gross profit reached $15.4 million with high margins across cloud, colocation, and ETH staking.
Bit Digital held about 155,444.4 ETH (market value ~$327.0 million) and 27,043,750 WhiteFiber shares valued at ~$322.1 million, and continued shifting strategy toward Ethereum and AI/HPC infrastructure.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 segment gross profit of $15.4 million with strong segment margins
- Colocation revenue grew 23.9% quarter-over-quarter to $4.8 million
- Net loss attributable to shareholders narrowed to $146.7 million from $185.3 million
- ETH holdings of about 155,444.4 ETH valued near $327.0 million at quarter-end
- WhiteFiber stake of 27,043,750 shares implied value of about $322.1 million
Negative
- Total revenue fell 13.6% sequentially to $27.9 million
- ETH staking revenue declined 29.4% quarter-over-quarter to $2.3 million
- Cloud services revenue decreased 13.1% quarter-over-quarter to $16.8 million
- Digital asset mining revenue dropped 32.9% to $3.7 million versus prior quarter
- Q1 2026 net loss attributable to shareholders was $146.7 million
- Adjusted EBITDA was negative at $(9.4) million for Q1 2026
- Cash and cash equivalents declined to $79.5 million from $118.4 million at year-end
- Total digital assets decreased to $295.0 million, largely due to lower ETH prices
- Convertible notes rose to $334.2 million following issuance by WhiteFiber
News Market Reaction – BTBT
On the day this news was published, BTBT declined 15.26%, reflecting a significant negative market reaction. Argus tracked a peak move of +13.9% during that session. Argus tracked a trough of -10.5% from its starting point during tracking. Our momentum scanner triggered 31 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $130M from the company's valuation, bringing the market cap to $723.37M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BTBT was up 4.93% pre-release. Key crypto peers were mixed: HIVE up 7.78%, BITF up 5.32%, FUFU down 2.7%, while others were roughly flat. Momentum scanner only flagged one peer (CNCK) moving down, supporting a stock-specific rather than broad sector move.
Previous Crypto,earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 31 | Fiscal 2025 results | Negative | +5.3% | Reported FY25 loss and negative adjusted EBITDA alongside Ethereum-focused shift. |
| Nov 14 | Q3 2025 earnings | Positive | -4.4% | Strong Q3 revenue, ETH staking growth, and large net income from asset gains. |
| Aug 14 | Q2 2025 earnings | Neutral | -5.6% | Mixed Q2 results with revenue decline but positive net income and ETH ramp. |
| May 15 | Q1 2025 earnings | Negative | +15.5% | Revenue decline and adjusted EBITDA loss amid business mix shift. |
| Mar 14 | Fiscal 2024 results | Positive | +7.5% | Strong FY24 revenue growth and positive adjusted EBITDA driven by HPC. |
Crypto/earnings releases have produced mixed reactions, with several positive or strategic updates followed by divergent price moves, suggesting news quality and market positioning do not always align.
Over the past year, Bit Digital has repeatedly used earnings updates to reinforce its transition toward an Ethereum-focused treasury and AI/HPC exposure via WhiteFiber. Prior crypto/earnings releases on May 15, 2025, Aug 14, 2025, Nov 14, 2025, and Mar 31, 2026 highlighted rising ETH holdings, growing staking revenues, and consolidation of WhiteFiber. Price reactions varied from about -5.64% to +15.53%, indicating that similar strategic messages have not produced a consistent trading pattern.
Historical Comparison
In the past crypto/earnings releases, BTBT moved an average of 3.67% over 24 hours, with reactions ranging from about -6% to +16%, showing that sizeable swings around this tag are common.
Same-tag events trace BTBT’s evolution from bitcoin mining toward an Ethereum-native treasury and staking platform with growing WhiteFiber consolidation and AI/HPC exposure.
Market Pulse Summary
The stock dropped -15.3% in the session following this news. A negative reaction despite strategic emphasis on Ethereum and AI/HPC would fit the pattern seen in some earlier crypto/earnings releases, where solid operational progress still met selling. Prior same-tag events showed an average move of 3.67% with several downside reactions. Given exposure to digital asset prices and non-cash mark-to-market swings, sharp declines could reflect concerns about earnings quality rather than core treasury or infrastructure positioning.
Key Terms
ethereum medical
eth financial
staking financial
liquid-staked eth financial
digital asset mining financial
convertible notes financial
mark-to-market financial
AI-generated analysis. Not financial advice.
The Company's first quarter results reflected continued execution of its Ethereum-focused strategic asset strategy centered on treasury management, staking, and disciplined capital allocation.
Bit Digital actively participates in the Ethereum ecosystem through treasury management and staking operations designed to generate protocol-native yield while maintaining balance sheet flexibility and capital efficiency. The Company also maintains a majority ownership position in WhiteFiber (Nasdaq: WYFI), providing additional exposure to AI infrastructure.
Results for the first quarter of 2026 include the consolidated financial performance of WhiteFiber.
- Total revenue for the first quarter of 2026 was
$27.9 million 13.6% decrease compared to$32.3 million - Segment gross profit for the first quarter was
$15.4 million 59.5% in cloud services, approximately59.3% in colocation services, and approximately94.7% in ETH staking. Gross profit reflects the underlying operational performance of the business excluding non-cash digital asset movements and infrastructure investment activity. - As of March 31, 2026, the Company held approximately 155,444.4[1] ETH.
- Based on a closing ETH price of approximately
$2 $327.0 - The Company's average ETH acquisition price for all holdings was approximately
$3,045 - Revenue from ETH staking was
$2.3 million 29.4% decrease from the previous quarter. The decline reflected lower average ETH prices and lower natively staked balances following the repositioning of roughly 70,000 ETH into liquid staking to maintain treasury flexibility. - As of April 30, 2026, around 60,677 ETH remained natively staked. During the first quarter, the Company continued to optimize treasury positioning and liquidity management. Roughly 70,000 ETH was repositioned into LsETH (liquid-staked ETH) to maintain treasury flexibility while continuing to generate yield.
- Revenue from cloud services was
$16.8 million 13.1% decrease from the prior quarter. - Revenue from colocation services was
$4.8 million 23.9% increase from the prior quarter. The increase was driven byMTL-3 contributing for a full quarter in Q1. - Revenue from digital asset mining was
$3.7 million 32.9% decrease compared to the prior quarter. The decline was driven by decreased BTC production and depressed average BTC prices during the quarter. - Net loss attributable to Bit Digital shareholders for the first quarter was
$(146.7) million $(185.3) million - Adjusted EBITDA for the first quarter was
$(9.4) million $121.1 million $15.3 million $1.8 million $9.3 million - Cash and cash equivalents totaled
$79.5 million $118.4 million - Total digital assets were
$295.0 million $415.7 million - Convertible notes increased to
$334.2 million - As of March 31, 2026, Bit Digital held 27,043,750 WhiteFiber shares, with an implied value of
$322.1 million $11.91
Strategic Asset Strategy
Bit Digital continues executing its Ethereum-focused strategic asset strategy centered on treasury management, staking, and disciplined capital allocation.
The Company actively participates in the Ethereum network through treasury management and staking operations designed to generate yield while maintaining balance sheet flexibility and capital efficiency. Bit Digital also maintains a majority ownership position in WhiteFiber (NASDAQ: WYFI), providing additional exposure to AI and high-performance computing infrastructure.
Bitcoin Mining Update
Bit Digital continued reducing exposure to bitcoin mining during the quarter as part of its transition toward Ethereum and infrastructure-related operations. Mining remains cash flow generative but is no longer a strategic growth priority. Capital allocation is expected to continue shifting toward Ethereum and infrastructure-related opportunities.
Management Commentary
"Bit Digital has been early on several major industry shifts in the past, and we believe we are early again at the convergence of AI and Ethereum. Ethereum infrastructure will become increasingly important to the future digital financial system as stablecoins, tokenization, and on-chain settlement activity continue scaling globally. The future financial system will increasingly revolve around automated, on-chain value transfer between AI agents and applications — Ethereum is particularly well-positioned to serve as the settlement layer for that activity.
Bit Digital sits at both layers of this thesis: providing the compute infrastructure through WhiteFiber and the settlement rails through our Ethereum treasury and staking platform. Demand for compute and power continues exceeding available supply across AI infrastructure markets, and compute itself is scarce and valuable enough to become a new asset class.
Ethereum infrastructure and AI compute infrastructure are not separate strategies — they are components of a single integrated platform aligned with the future of the digital financial system," said Sam Tabar, Chief Executive Officer of Bit Digital.
About Bit Digital
Bit Digital (NASDAQ: BTBT) is a Strategic Asset Company (SAC) focused on active participation in Ethereum infrastructure and controlling equity exposure to AI/HPC infrastructure through its majority ownership stake in WhiteFiber (NASDAQ: WYFI). The Company purchases and stakes ETH to generate protocol-native yield and participates directly in the Ethereum network. Bit Digital allocates capital with a focus on long-duration, foundational infrastructure, and disciplined balance sheet management. For additional information, please contact ir@bit-digital.com or follow us on LinkedIn or X.
Investor Notice
Investing in our securities involves risks worth considering, before making an investment decision. All current and potential investors are advised to regularly review the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 (Annual Report) and any subsequently filed quarterly reports on Form 10-Q and any Current Reports on Form 8-K. If any material risks were to occur – including those not presently known to us or currently deemed immaterial – our business operations may be impaired, and our financial condition or operating results would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investment. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See "Safe Harbor Statement" below.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
[1] Includes approximately 15,248.0 ETH and ETH-equivalents held in an externally managed fund. |
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SOURCE Bit Digital, Inc.