Bit Digital has reported lower first-quarter revenue and another steep quarterly loss as the Nasdaq-listed company continues redirecting capital from bitcoin mining into Ethereum staking and treasury operations.
Summary
- Bit Digital reported a $146.7 million net loss as revenue from ETH staking, cloud services, and crypto mining declined in Q1.
- The company held more than 154,000 ETH at the end of March while continuing to reduce exposure to bitcoin mining.
- Bit Digital said future capital deployment will continue focusing on Ethereum operations and infrastructure businesses.
According to Bit Digital’s earnings report released Thursday, first-quarter revenue came in at $27.9 million, down 13.6% from the final quarter of 2025, after weaker results across its cloud services, ETH staking, and crypto mining businesses.
Cloud services remained the company’s largest revenue segment at $16.8 million, though the figure slipped 13.1% quarter-on-quarter. Co-location services added another $4.8 million, while crypto mining revenue dropped 32.9% to $3.7 million after lower bitcoin production and softer BTC prices weighed on returns during the period.
Ethereum staking income also weakened. Bit Digital said staking revenue fell 29.4% from the previous quarter to $2.3 million as average ether prices declined and the amount of natively staked ETH decreased. During the quarter, the company moved nearly 70,000 ETH into liquid staking arrangements to preserve treasury flexibility.
At the same time, the company posted a net loss of $146.7 million for the quarter, improving from the $185.3 million loss recorded in Q4 2025. Bit Digital said non-cash mark-to-market adjustments tied to digital assets continued affecting earnings results.
Ethereum treasury strategy expands
By the end of March, Bit Digital held approximately 154,444 ETH, valued at roughly $327 million at the time, with an average acquisition cost of $3,045 per token, according to the earnings filing.
The latest treasury figure comes months after Bit Digital disclosed in November 2025 that its Ethereum holdings had climbed to roughly 153,547 ETH valued at around $590.5 million at the end of October. In that earlier update, the company said it acquired more than 31,000 ETH during the month while staking nearly 86% of its holdings to generate yield.
Back in June 2025, Bit Digital publicly confirmed it had started moving away from bitcoin mining in favor of an Ethereum-focused treasury and staking model. Chief Executive Officer Sam Tabar previously described Ethereum as a foundational settlement layer tied to tokenized real-world assets and stablecoin activity, contrasting it with bitcoin’s role primarily as a store of value.
Thursday’s report showed the company continuing along that path. Bit Digital stated that bitcoin mining still generates cash flow but no longer represents its primary expansion strategy, adding that future capital deployment would continue leaning toward Ethereum and infrastructure-related businesses.
Speaking in the earnings release, Tabar said the company believes it is positioned early around the intersection of artificial intelligence infrastructure and Ethereum-based financial rails. He pointed to WhiteFiber, Bit Digital AI’s high-performance computing subsidiary, alongside the company’s Ethereum treasury and staking operations as part of that thesis.
WhiteFiber previously raised nearly $160 million through an initial public offering in August 2025. As of March 31, Bit Digital held about 27 million WhiteFiber shares and retained majority ownership in the business.
Meanwhile, Ethereum prices remained under pressure during the quarter. Ether fell roughly 29% to $2,104 by March 31 before trading near $2,245 on Friday, according to pricing data cited in the report.
Investors reacted cautiously after the earnings release. Bit Digital shares declined 3.7% in after-hours trading on Thursday after gaining 4.9% during the regular session. Despite the pullback, the stock has still advanced 39% over the past month, although it remains down 7% across the last six months.