Bit Digital, Inc. Announces Third Quarter 2026 Financial Results

Colocation growth accompanied lower quarterly revenue, while digital asset gains helped restore positive GAAP earnings.

Rhea-AI Summary

Bit Digital (BTBT) returned to profitability in the third quarter of 2026, reporting net income attributable to shareholders of $28.5 million. Diluted earnings were $0.08 per share, versus a $0.31 loss in the second quarter. Revenue fell 11% year over year to $27.1 million, while gross margin was 56.1%. Colocation revenue rose 232% year over year to $5.6 million; mining and ETH staking revenue declined.

Consolidated cash reached $143.5 million, including $138.5 million at majority-owned WhiteFiber (WYFI). Convertible notes totaled $445.3 million, net of issuance costs and debt discount. Remaining performance obligations were approximately $729.0 million. Bit Digital held approximately 163,725.9 ETH and ETH-equivalents valued at $439.4 million, including externally managed holdings. Management is considering share repurchases, but implementation requires shareholder approval and a supporting funding plan.

14 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointNet income attributable to shareholders reached $28.5 million, versus a $107.2 million second-quarter loss; diluted EPS was $0.08 versus negative $0.31.
• Moderate pointNine-month revenue rose 7% year over year to $87.1 million through September 30, 2026.
• Moderate pointColocation revenue rose 232% year over year to $5.6 million, up 19% sequentially, with approximately 57% gross margin.
• Moderate pointCloud Services revenue was $18.1 million, up slightly year over year, with approximately 56% gross margin.
• Moderate pointNine-month ETH staking revenue increased 11% year over year, as increased native staking earnings outweighed lower average ETH prices.
• Moderate pointNine-month operating cash inflow reached $163.2 million, versus $204.9 million of cash used in the prior-year period.
• Moderate pointConsolidated cash increased to approximately $143.5 million at September 30, 2026, from $83.6 million at June 30.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Remaining performance obligations totaled approximately $729.0 million, with approximately $13.5 million expected in 2026, $235.1 million in 2027 and $206.9 million in 2028. 2.5× market cap
• Moderate pointBit Digital repaid $30 million to Galaxy in September; WhiteFiber separately repaid $30 million under its delayed-draw facility. 10% of market cap
• Moderate pointWhiteFiber received an additional $70 million drawdown on October 27, adding funding within Bit Digital's consolidated business. 24% of market cap

4 minor points

• Minor pointGross profit totaled $15.2 million in the third quarter, with a 56.1% gross margin.
• Minor pointNine-month colocation revenue increased nearly 200% year over year, supported by MTL-3 operations and NC-1's initial contribution.
• Minor pointETH staking revenue increased 14% sequentially, primarily driven by higher Ethereum prices.
• Minor pointNative staking generated 474 ETH during the quarter, bringing rewards earned through September to approximately 1,863 ETH.

Negative

• Major pointConvertible notes rose to $445.3 million net of issuance costs and debt discount, versus $336.2 million at June 30.
• Moderate pointThird-quarter revenue declined 11% year over year to $27.1 million from $30.5 million.
• Moderate pointWhiteFiber's facility borrowings reached $100 million outstanding after the October 27 drawdown. 35% of market cap
• Moderate pointContract liabilities increased to $154.1 million at September 30, 2026, from $7.7 million at December 31, 2025.
• Minor pointETH staking revenue fell to $1.0 million from $2.9 million a year earlier after repositioning ETH into liquid staking.

6 minor points

• Minor pointMining revenue fell to $2.0 million from $7.4 million a year earlier; bitcoin mined declined to 28.4 from 64.9.
• Minor pointNine-month mining revenue declined 63% year over year as the business continued winding down.
• Minor pointDigital asset adjustments and specified non-operating items contributed approximately $16.3 million of the third-quarter gain.
• Minor pointLsETH impairment totaled $3.2 million, a non-cash charge rather than a realized loss.
• Minor point19,000 LsETH was pledged as collateral at quarter-end; an additional 45,000 LsETH supported WhiteFiber's October drawdown.
• Minor point1,625 ETH was sold for $3.4 million during the quarter; Bit Digital acquired no ETH.

News Explained

If repurchases were funded by ETH sales, staking income and ETH appreciation exposure would fall, while the share count would decline.

Bit Digital has reported its third-quarter 2026 results; after quarter-end, WhiteFiber received an additional drawdown of $70 million on October 27, taking facility borrowing outstanding to $100 million, while another 45,000 LsETH was pledged in connection with the draw.

The release adds that selling ETH to fund repurchases would reduce staking income and exposure to potential ETH appreciation, while repurchases would reduce the share count.

Argus 15 min delay 13 alerts

-4.38% vs previous close $0.7600 last price 2.5x rel. volume Open Argus

Details

Market move: BTBT -4.38% vs previous close. 3Q26 earnings report

$0.72 – $0.79 Day Range

$274.08M Mkt Cap at Last Price

On Nov 12, the day this news came out, the latest delayed price for BTBT is 4.38% below the previous close. Our momentum scanner has recorded 13 alerts for this stock so far that day. The latest delayed price is $0.76. Relative volume is elevated at 2.5x what this stock usually trades by this time of day.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Q3 total revenue: $27.1 million Nine-month total revenue: $87.1 million Colocation revenue: $5.6 million +5 more

Q3 total revenue

$27.1 million

Third quarter 2026; down 11% year over year

Nine-month total revenue

$87.1 million

Nine months ended September 30, 2026; up 7% year over year

Colocation revenue

$5.6 million

Third quarter 2026; up 232% year over year

Net income attributable to shareholders

$28.5 million

Third quarter 2026

Diluted earnings per share

$0.08 per diluted share

Third quarter 2026

Operating cash flow

$163.2 million

Nine months ended September 30, 2026

Cash and cash equivalents

$143.5 million

As of September 30, 2026

Consolidated convertible notes

$445.3 million

As of September 30, 2026; net of unamortized debt issuance costs and debt discount

Previous Earnings Reports

2 past events · Latest: Aug 13

Same Type 2 events

1. Aug 13

   Q2 earnings

   24h Move

   +2.0%

   Q2 colocation revenue and shareholder loss provide the preceding-quarter comparison for current results.

2. Nov 14

   Q3 earnings

   24h Move

   -4.4%

   Prior Q3 revenue and ETH staking levels establish the year-over-year comparison cited in current results.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-controlling interests, gaap, convertible notes, liquid staking

4 terms

non-controlling interests financial

"with a portion of results attributable to non-controlling interests"

An ownership stake in a subsidiary held by outside shareholders rather than the parent company, representing the portion of that subsidiary’s assets and profits the parent does not control. For investors, it shows what part of consolidated earnings and equity belongs to others — like a roommate who owns part of a house — which affects how much value and profit per share are truly attributable to the parent company’s shareholders.

gaap financial

"contributed to a return to positive GAAP earnings"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

convertible notes financial

"Consolidated convertible notes, net of unamortized debt issuance costs"

Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.

liquid staking technical

"the repositioning of ETH into liquid staking to collateralize the WhiteFiber financing"

Liquid staking is a process that allows investors to earn rewards from their staked assets while still being able to use or access those assets whenever needed. Imagine putting money into a savings account that also lets you spend or invest that money without waiting—liquid staking offers similar flexibility, making it easier for investors to benefit from their holdings without sacrificing liquidity.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

NEW YORK, Nov. 12, 2026 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a publicly listed Strategic Asset Company focused on Ethereum ("ETH") strategies and AI/HPC infrastructure, today announced its financial results for the third quarter of 2026. The Company will host a conference call on November 12, 2026, at 8:30 AM ET to discuss results (click here for registration information).

Financial Highlights for the Third Quarter of 2026

The Company's third-quarter results reflected continued execution of its Strategic Asset Company strategy, with growth in colocation revenue supported by the initial contribution from WhiteFiber's NC-1 data center campus and sequential improvement in native ETH staking revenue. Results also benefited from higher digital asset values, which contributed to a return to positive GAAP earnings.

Results for the third quarter of 2026 include the consolidated financial performance of WhiteFiber Inc. (Nasdaq: WYFI), with a portion of results attributable to non-controlling interests.

• Total revenue for the third quarter of 2026 was $27.1 million, an 11% decline compared to $30.5 million in the third quarter of 2025. For the nine months ended September 30, 2026, total revenue was $87.1 million, a 7% increase year over year.
  
  
• Gross profit for the third quarter was $15.2 million, representing a gross margin of 56.1%.
  
  
• Revenue from Cloud Services was $18.1 million, up slightly year-over-year, at a gross margin of approximately 56%.
  
  
• Revenue from colocation services was $5.6 million, an increase of 232% from the third quarter of 2025, at a gross margin of approximately 57%. Revenue increased 19% sequentially from the second quarter of 2026. For the nine months ended September 30, 2026, colocation revenue increased nearly 200% year-over-year. The increase was primarily due to the MTL-3 site becoming fully operational in November 2025 and the beginning of revenue generation from the first 20 MW of contracted capacity at the NC-1 facility. 
  
  
• Third-quarter revenue from ETH staking was $1.0 million, compared to $2.9 million in the year-ago quarter with the decline attributable to the repositioning of ETH into liquid staking to collateralize the WhiteFiber financing during the second quarter. On a sequential basis, revenue increased 14% from the second quarter of 2026 primarily driven by an increase in the price of Ethereum. For the nine months, ETH staking revenue increased 11% year over year primarily due to an increase in ETH earned from native staking partially offset by lower average ETH prices during the nine months.
  
  
• Revenue from digital asset mining was $2.0 million in the third quarter of 2026, on 28.4 bitcoin mined compared to revenue of $7.4 million, on 64.9 bitcoin mined in the third quarter of 2025. For the nine months, mining revenue declined 63% year over year. The quarterly and nine-month results are consistent with the continued winddown of the business. The segment generated a gross margin of approximately 27% in the third quarter of 2026.
  
  
• Net income attributable to Bit Digital shareholders for the third quarter of 2026 was $28.5 million, or $0.08 per diluted share, compared to a net loss of $107.2 million, or $0.31 per diluted share in the second quarter of 2026. Results included realized and unrealized gains on digital assets and digital intangible assets, impairment on digital intangible assets, and non-operating items including induced conversion expense, which together accounted for approximately $16.3 million of the gain in the third quarter and $83.5 million of the loss in the second quarter.
  
  
• Net cash provided by operating activities was $163.2 million for the nine months ended September 30, 2026, compared to a use of cash of $204.9 million in the same period of 2025.
  
  
• Cash and cash equivalents totaled approximately $143.5 million as of September 30, 2026, compared to $83.6 million as of June 30, 2026. Of that balance, approximately $5.0 million was held at Bit Digital and approximately $138.5 million at WhiteFiber.
  
  
• Contract liabilities were $154.1 million as of September 30, 2026, compared to $7.7 million as of December 31, 2025. Remaining performance obligations were approximately $729.0 million at quarter end, of which approximately $13.5 million is expected to be recognized during the balance of 2026, $235.1 million in 2027, and $206.9 million in 2028, and the remainder thereafter.
  
  
• Consolidated convertible notes, net of unamortized debt issuance costs and debt discount, totaled $445.3 million as of September 30, 2026, compared to $336.2 million as of June 30, 2026. The September 30 balance includes Bit Digital's 2030 Convertible Notes, with $150 million in principal outstanding, and WhiteFiber's 2031 and 2032 Convertible Notes.
  
  
• In September WhiteFiber repaid $30 million of the Delayed Draw Term Loan Facility and Bit Digital separately repaid $30 million to Galaxy. Subsequent to the end of the third quarter, on October 27, WhiteFiber received an additional drawdown of $70 million under the facility, bringing the total outstanding to $100 million.
  
  
• As of September 30, 2026, Bit Digital held 27,043,750 (59.7%) WhiteFiber shares, with an implied value of approximately $487 million based on the Nasdaq closing price of $18.01 per share on that date.

Ethereum Treasury Update

As of September 30, 2026, the Company held approximately 163,725.9 ETH^[1] , with a market value of $439.4 million based on a closing ETH price of approximately $2,684 on that date.

74,606.4 ETH was held directly at a fair value of $200.2 million, including ETH natively staked through the Company's validator partner.

During the third quarter, the Company liquid staked 73,683 ETH and received 66,192 LsETH in exchange. Of that balance, 19,000 LsETH was pledged as collateral in connection with the Company's collateralized borrowing and is reflected on the balance sheet as a digital asset collateral receivable of $37.1 million. As of September 30, 2026, the remaining 47,192 LsETH was carried within digital intangible assets at $98.3 million and was retained as a buffer against margin requirements. Subsequent to the end of the third quarter, an additional 45,000 LsETH was pledged as collateral in connection with WhiteFiber's $70 million drawdown in October.

During the quarter the Company sold 1,625 ETH for $3.4 million, at an average sales price of approximately $2,114.62 per ETH. The Company did not acquire any ETH during the quarter.

LsETH is accounted for separately from ETH under different guidance and is carried at cost less impairment rather than fair value. The reclassification changed where the position appears on the balance sheet without changing the Company's underlying economic exposure. The Company recorded a non-cash impairment of $3.2 million on LsETH during the quarter, which does not represent a realized loss.

Strategic Asset Company Strategy

Bit Digital operates as a Strategic Asset Company, allocating capital across two core areas: Ethereum as economic infrastructure, and AI infrastructure through its majority ownership stake in WhiteFiber. As of September 30, 2026, Bit Digital held 27,043,750 shares of WhiteFiber equating to 59.7% of total WhiteFiber shares outstanding with an implied value of approximately $487 million based on the Nasdaq closing price of $18.01 per share on that date.

The Company does not intend to sell WhiteFiber shares in 2026 and continues to view the position as a long-term strategic asset.

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 gross margin positive but is no longer a strategic growth priority.

The Company does not expect to allocate meaningful growth or maintenance capital to this segment going forward. Capital allocation is expected to continue shifting toward Ethereum and infrastructure-related opportunities.

Management Commentary

"Our third-quarter results reflect the continued shift toward Ethereum and AI infrastructure," said Sam Tabar, Chief Executive Officer of Bit Digital. "Colocation revenue increased 19% sequentially, supported by NC-1's initial contribution, while native ETH staking revenue grew 14%. We also reported positive GAAP earnings, with digital asset valuation gains contributing significantly to the result.

"Our Strategic Asset Company approach focuses on making the assets we own more productive. Native staking generated 474 ETH during the quarter, bringing rewards earned through September to approximately 1,863 ETH. Alongside our Ethereum treasury and controlling interest in WhiteFiber, our investment portfolio includes third-party managed funds and smaller holdings that provide exposure to private AI businesses and digital asset market infrastructure.

"Our own shares are also part of the capital allocation discussion. The persistent discount to our net asset value makes repurchases an option that deserves serious consideration, but the benefit to shareholders depends on both the price we pay and how we fund them. Under our Articles of Association, shareholder approval is required before a repurchase program can be implemented. Any decision to seek that approval would need to be supported by a funding plan that we believe improves value per share while maintaining sufficient liquidity. Selling Ethereum to fund repurchases would reduce our staking income and exposure to potential ETH appreciation. We weigh those trade-offs against the benefit of reducing the share count and our liquidity requirements.

"We remain constructive on the assets we own, and our responsibility is to determine how best to translate their value into returns for Bit Digital shareholders."

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, visit our website at www.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 https://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.

Investor Contact

Charley Brady
Head of Investor Relations
ir@bit-digital.com

 

[1] Includes approximately 15,437 ETH and ETH-equivalents held in an externally managed fund, and approximately 73,683 ETH presented on an as-converted basis from LsETH using the Coinbase conversion rate as of September 30, 2026.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/bit-digital-inc-announces-third-quarter-2026-financial-results-302937164.html

SOURCE Bit Digital, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Bit Digital's third-quarter 2026 earnings and revenue?

Bit Digital reported $28.5 million in net income attributable to shareholders, or $0.08 per diluted share, on revenue of $27.1 million. Revenue declined 11% from the third quarter of 2025. The earnings comparison was sequential: the second quarter of 2026 recorded a $107.2 million loss, or $0.31 per diluted share.

How much Ethereum did Bit Digital hold at September 30, 2026?

Bit Digital held approximately 163,725.9 ETH and ETH-equivalents, with a market value of $439.4 million. This included approximately 15,437 ETH and ETH-equivalents in an externally managed fund and approximately 73,683 ETH represented by LsETH on an as-converted basis. Direct ETH holdings totaled 74,606.4 ETH, valued at $200.2 million.

What must happen before Bit Digital can implement share repurchases?

Bit Digital requires shareholder approval before implementing a repurchase program under its Articles of Association. Management said any decision to seek approval would need a funding plan it believes improves value per share while maintaining sufficient liquidity. Selling Ethereum to fund repurchases would reduce staking income and exposure to potential ETH appreciation.

How large is Bit Digital's WhiteFiber stake, and does it plan to sell it?

Bit Digital held 27,043,750 WhiteFiber shares, representing 59.7% ownership, at September 30, 2026. The stake had an implied value of approximately $487 million using WhiteFiber's $18.01 closing share price that day. Bit Digital does not intend to sell WhiteFiber shares in 2026 and views the holding as a long-term asset.

What is Bit Digital's plan for its bitcoin mining business?

Bit Digital is continuing to wind down bitcoin mining and does not expect to allocate meaningful growth or maintenance capital to the segment. Mining remained gross-margin positive, with an approximately 27% gross margin in the third quarter. The company expects capital allocation to continue shifting toward Ethereum and infrastructure-related opportunities.