Bit Digital Releases Annual Shareholder Letter

Rhea-AI Summary

Bit Digital (NASDAQ: BTBT) released its annual shareholder letter outlining a strategic transformation completed in 2025. The company exited bitcoin mining, consolidated digital-asset exposure into Ethereum (holding over 150,000 ETH, majority staked) and prioritized AI infrastructure via a majority stake in WhiteFiber.

Bit Digital completed an unsecured convertible note offering to preserve balance-sheet flexibility, intends not to sell WhiteFiber shares in 2026, and shifts from transformation to execution focused on infrastructure deployment and long-term compounding.

Positive

• Holds over 150,000 ETH, majority staked
• Majority ownership stake in WhiteFiber
• Completed an unsecured convertible note offering to preserve flexibility
• Exited bitcoin mining to reallocate capital to infrastructure

Negative

• Concentrated digital-asset exposure into Ethereum
• Returns currently tied to market beta of ETH and WhiteFiber performance

Key Figures

ETH holdings: over 150,000 ETH

1 metrics

ETH holdings over 150,000 ETH As of the third quarter, per shareholder letter

Market Reality Check

Price: $2.03 Vol: Volume 28,229,771 is at 0...

normal vol

$2.03 Last Close

Volume Volume 28,229,771 is at 0.86x the 20-day average of 32,945,422 shares. normal

Technical Price $2.16 is trading below the 200-day MA at $2.70 and 52.5% under the 52-week high of $4.55.

Peers on Argus

BTBT traded down 2.7% with several peers like HIVE (-4.22%), BITF (-0.76%), FUFU...

1 Down

BTBT traded down 2.7% with several peers like HIVE (-4.22%), BITF (-0.76%), FUFU (-2.31%), CANG (-3.62%) and OPY (-0.58%) also negative, but momentum data only flagged one peer move, so action screens as stock-specific rather than a broad sector rotation.

Previous Crypto Reports

5 past events · Latest: Dec 05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 05	ETH staking metrics	Positive	-7.7%	Reported November 2025 ETH treasury, staking levels and rewards metrics.
Nov 07	ETH staking metrics	Positive	+3.6%	Detailed October 2025 ETH acquisitions, staking expansion and yield data.
Oct 08	Convertible ETH purchase	Positive	+8.0%	Used $150M convertible note proceeds to buy 31,057 ETH at premium to mNAV.
Oct 07	ETH staking metrics	Positive	-1.1%	Reported September 2025 ETH holdings, staking levels and rewards yield.
Sep 04	ETH staking metrics	Positive	-0.8%	Released August 2025 ETH treasury and high-percentage staking operations.

Pattern Detected

Crypto-tagged updates for BTBT have often been positive in tone but produced mixed reactions, with 3 divergences and 2 aligned moves. The stock has sometimes sold off on constructive Ethereum treasury and financing news, suggesting sentiment and positioning can outweigh fundamentals around these announcements.

Recent Company History

Over recent months, BTBT’s crypto-tagged news has focused on expanding its Ethereum treasury and staking, plus financing via convertible notes. Updates from September–November 2025 detailed ETH holdings rising from 121,252 ETH to over 153,546.9 ETH, with high staking ratios and recurring rewards. A $150M convertible notes deal funded additional ETH purchases at a premium to mNAV. Today’s shareholder letter continues that narrative, emphasizing ETH and AI infrastructure as core strategic assets.

Historical Comparison

crypto

+4.2 %

Average Historical Move

Historical Analysis

In the past year, BTBT issued 5 crypto-focused updates with an average move of ±4.24%. The shareholder letter extends the same ETH- and staking-centric strategy narrative.

Typical Pattern

Crypto-tagged news shows steady progression: growing ETH holdings and staking yields, then layering in a convertible notes financing to scale exposure while keeping focus on Ethereum as the core economic infrastructure.

Market Pulse Summary

This announcement underscores BTBT’s repositioning as a strategic asset company centered on Ethereum...

Analysis

This announcement underscores BTBT’s repositioning as a strategic asset company centered on Ethereum and AI infrastructure. The letter highlights over 150,000 ETH held and emphasizes staking, network participation, and exposure to WhiteFiber rather than legacy bitcoin mining. Historically, crypto-focused updates have prompted mixed stock reactions, so investors may watch how execution, ETH performance, and WhiteFiber’s operational metrics evolve against this long-term capital deployment strategy.

Key Terms

ethereum, eth, staking, ai compute, +2 more

6 terms

ethereum technical

"consolidated our digital asset exposure into Ethereum and prioritized our"

Ethereum is a digital money system and computing platform built on a shared online ledger called a blockchain; its native token, ether (ETH), is used to pay for transactions and run automated contracts. Investors care because ether acts like a tradeable asset whose price can move sharply, and the platform’s usage, upgrades, and rules affect supply, demand and potential returns—think of it as both a new kind of commodity and the fuel for a global app store.

eth technical

"We didn't view Ethereum as just another token to hold, but as programmable"

ETH is the native digital currency of the Ethereum blockchain, used to pay for transactions and to run programs on that network. For investors it matters because owning ETH is both a way to access and use the platform (like buying fuel to run an app) and a speculative asset whose price reflects demand for the network, changes to its supply rules, and broader crypto market sentiment.

staking financial

"built operational capabilities around staking and network participation."

Staking is the practice of locking up digital tokens to help run a blockchain network in return for rewards, similar to leaving money in a time deposit that pays interest while it’s unavailable. It matters to investors because staking can generate regular income and affect a token’s circulating supply and price, but it also ties up assets and can carry risks like lock-up periods, reduced liquidity, or technical and platform failures.

ai compute technical

"exposure of Al infrastructure through our majority stake in WhiteFiber."

AI compute is the total processing power, memory and energy needed to train and run artificial intelligence models, delivered by specialized chips and large data‑center servers. It matters to investors because compute determines how fast and cheaply a company can develop and scale AI products — like the engine and fuel for those products — so its availability and cost directly affect margins, capital needs and competitive edge.

convertible note offering financial

"we completed an unsecured convertible note offering during the year, which"

A convertible note offering is a way a company borrows money by issuing a short-term debt agreement that can later turn into equity, usually shares, instead of being repaid in cash. For investors it matters because it combines the relative safety of a loan with the upside of owning stock if the company grows—think of it as lending money with a built‑in option to swap the loan for ownership at a typically favorable price. This affects ownership dilution, future share value, and how capital needs are met.

protocol-native rewards technical

"majority of which is staked, generating protocol-native rewards while"

Rewards issued directly by a blockchain or decentralized protocol, paid in that system’s native token to users who perform desired actions such as staking, providing liquidity, validating transactions, or voting. They matter to investors because they create a predictable source of yield and influence token supply and user behavior—similar to a store handing out coupons to encourage repeat customers—affecting both short-term returns and long-term token value.

AI-generated analysis. Not financial advice.

NEW YORK, Jan. 29, 2026 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company") today released its annual shareholder letter to investors. The full letter is available on the Company's investor relations page.

To Our Shareholders,

2025 marked a defining year for Bit Digital. Over the past year, we deliberately reshaped the company around a clear view of how capital markets are evolving. We're in the process of exiting businesses that no longer align with durable value creation. We've concentrated our capital and operations ahead of the curve, building exposure to the two layers along which capital markets are digitizing: programmable financial rails through Ethereum and automation through Al infrastructure.

Today, Bit Digital operations are that of a strategic asset company (SAC), focused on two systems that underpin this shift: economic infrastructure through Ethereum, and intelligence infrastructure through Al compute. As a strategic asset company, we deploy and operate assets rather than simply holding them on a balance sheet.

A Structural Shift in Our Business
As we exit bitcoin mining, we've reallocated capital toward infrastructure with greater flexibility, durability, and long-term relevance. 

Mining was effective in an earlier business strategy, but over time it became a less efficient use of capital relative to opportunities that allow for active participation, yield generation, and operational leverage. Our decision to exit mining reflected this assessment and marked our transition from an extraction-based model to one centered on strategic asset deployment and infrastructure, without changing our conviction in digital assets.

At the same time, we consolidated our digital asset exposure into Ethereum and prioritized our exposure of Al infrastructure through our majority stake in WhiteFiber. These decisions repositioned Bit Digital around infrastructure we can operate, monetize, and compound over time.

Ethereum as Economic Infrastructure
Ethereum first entered our strategy in 2022 and became a central focus in 2025. At a time when most public companies in crypto were still fixated on bitcoin alone, Bit Digital was one of the first to recognize ETH as a core strategic asset. We didn't view Ethereum as just another token to hold, but as programmable financial infrastructure with long-term relevance across payments, compute, and capital markets.

Over the course of the year, we accumulated ETH at a measured cost basis and built operational capabilities around staking and network participation. As of the third quarter, Bit Digital held over 150,000 ETH, the majority of which is staked, generating protocol-native rewards while maintaining liquidity and institutional custody standards.

Ethereum combines liquidity, yield, and infrastructure participation. For Bit Digital, this means our balance sheet is aligned with usage, uptime, and network activity rather than short-term price movements alone.

As Ethereum matures, value accrual is increasingly driven by participation, fees, and coordination rather than speculation. This activity often develops ahead of price action, but is visible in enchain deployment, infrastructure usage, and institutional build-out.

Our strategy reflects this reality by actively participating in Ethereum's infrastructure and treating ETH as productive economic infrastructure.

AI as Intelligence Infrastructure
In parallel, we deepened our position in Al infrastructure through WhiteFiber, where Bit Digital holds a majority ownership stake.

Demand for Al-driven compute continues to grow across enterprise and industrial use cases. At the same time, power availability, data center capacity, and build timelines remain constrained. This imbalance is structural, not cyclical.

Through its investment in WhiteFiber, Bit Digital is economically exposed to physical infrastructure that delivers reliable compute capacity to meet this demand. WhiteFiber represents our long-term exposure to intelligence infrastructure, and we view this ownership as a core strategic asset within our long-term capital deployment strategy, rather than a financial asset to be traded.

Consistent with this view, Bit Digital will not sell any of its WhiteFiber shares in 2026 in any secondary offering or other discretionary disposition and intends to remain a long-term owner as the business continues to scale.

By the third quarter, improvements in utilization and operational traction reflected the early impact of this expansion.

Capital Position and Financing
To support this transformation, we completed an unsecured convertible note offering during the year, which was one of the first instances of this type of innovative financing in our niche. The structure preserved balance sheet flexibility while allowing us to raise capital at a conversion price set at a premium to our underlying asset value.

Our approach to capital allocation remains disciplined. We focus on deploying capital into infrastructure we intend to own and operate over long time horizons, rather than pursuing short-term liquidity or scale for its own sake.

Looking Ahead
As we enter 2026, Bit Digital moves from transformation to execution. Capital markets are increasingly rewarding infrastructure that is productive, durable, and actively deployed. Our exposure to Ethereum and Al is aligned with that shift, providing participation in the systems that enable settlement, coordination, and automation as they continue to scale.

This positioning is intentional. We believe it places Bit Digital ahead of where market structures are moving, in line with our broader strategy of staying ahead of the curve by investing in foundational infrastructure early, from WhiteFiber to ETH, rather than chasing short-term or reactive themes.

Today, Bit Digital is a more focused and resilient company than it was a year ago, operating within a strategic asset company mindset across both Ethereum and Al infrastructure. We are building a business designed around productive infrastructure, operational discipline, and long­term compounding.

As we move into the next phase, our focus is on strengthening the Company's ability to self-fund growth through durable cash flow, enabling continued investment across our portfolio while maintaining balance sheet flexibility and driving long-term compounding.

While our current positioning provides exposure to the structural growth of Ethereum and AI infrastructure, we recognize that our returns today are largely tied to market beta—how ETH performs and how WhiteFiber performs. Our strategy going forward is to enable alpha generation for Bit Digital. This means moving beyond passive exposure to actively creating differentiated value through operational excellence, strategic capital deployment, and selective opportunities that compound returns independent of broader market movements.

We appreciate the continued support of our shareholders and remain committed to disciplined execution in the year ahead.

Sincerely,
Sam Tabar
Chief Executive Officer
Bit Digital, Inc.

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 a high degree of risk. Before making an investment decision, you should carefully consider 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, 2024 (Annual Report) and any subsequently filed Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. 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. Forward-looking statements in this press release include statements regarding WYFI shares held by BTBT and WYFI's long-term growth. 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/bit-digital-releases-annual-shareholder-letter-302673948.html

SOURCE Bit Digital, Inc.

FAQ

How much Ethereum does Bit Digital (BTBT) hold as of 2025?

Bit Digital holds over 150,000 ETH, with the majority staked to earn protocol-native rewards. According to the company, staking preserves liquidity and meets institutional custody standards while aligning the balance sheet with network participation.

Why did Bit Digital (BTBT) exit bitcoin mining in 2025?

Bit Digital exited bitcoin mining to reallocate capital toward more durable infrastructure and operational leverage. According to the company, mining became a less efficient use of capital versus assets that enable active participation, yield, and long-term compounding.

What is Bit Digital's (BTBT) position in WhiteFiber and 2026 plans?

Bit Digital holds a majority ownership stake in WhiteFiber and intends not to sell any WhiteFiber shares in 2026. According to the company, this reflects a long-term ownership strategy for AI infrastructure exposure rather than short-term trading.

What financing did Bit Digital (BTBT) complete to support its transformation?

Bit Digital completed an unsecured convertible note offering designed to preserve balance-sheet flexibility with conversion at a premium to asset value. According to the company, the financing supports capital deployment into infrastructure while maintaining optionality.

How does Bit Digital (BTBT) characterize its future return drivers?

The company says current returns are largely tied to market beta of ETH and WhiteFiber, and it aims to generate alpha through operational excellence and selective capital deployment. According to the company, the focus is shifting from passive exposure to active value creation.