Bit Digital Misses Q3 Revenue Estimates as It Exits Bitcoin Mining

Bit Digital missed third-quarter revenue estimates by 17.7%, reporting $27.07 million against analyst consensus of $32.88 million, according to financial results released Thursday. The shortfall landed alongside an 11% year-over-year revenue decline — from $30.5 million — as the company accelerates its retreat from Bitcoin mining toward Ethereum and AI infrastructure.

The Nasdaq-listed firm (BTBT) still turned a profit. Net income attributable to shareholders reached $28.5 million, or $0.08 per diluted share, a sharp reversal from the prior quarter's net loss of $107.2 million, or $0.31 per share. Digital asset gains, impairments and other nonoperating items contributed a net $16.3 million to the quarterly result, largely on the back of Ethereum price appreciation.

Gross profit came in at $15.2 million, a 56.1% margin.

What does the revenue mix tell us?

The quarter's segment numbers trace a company in mid-pivot. Colocation revenue surged 232% year over year to $5.6 million, driven by the first contribution from WhiteFiber's NC-1 data center campus. Cloud services revenue reached $18.1 million, up slightly from the previous year.

Bitcoin mining revenue fell to $2 million from $7.4 million a year earlier. Production dropped to 28.4 BTC from 64.9 BTC. The company said outright that Bitcoin mining is no longer a strategic growth priority.

Ethereum staking revenue also declined, to $1 million from $2.9 million, after Bit Digital moved its ETH into liquid staking positions to support WhiteFiber financing. The trade-off: less staking income now, more collateral flexibility for the AI infrastructure subsidiary.

How big is the Ethereum position?

As of September 30, Bit Digital held approximately 163,726 ETH and ETH equivalents valued at $439.4 million. The company sold 1,625 ETH for $3.4 million during the quarter and made no new purchases. The treasury now functions as the company's largest asset base, with its value moving directly with the Ethereum market.

Bit Digital also maintained a 59.7% ownership stake in WhiteFiber, valued at approximately $487 million at quarter end. Consolidated cash stood at $143.5 million. Convertible notes totaled $445.3 million, up from $336.2 million in June — a $109 million increase in debt-funded leverage in a single quarter, tied to the WhiteFiber buildout.

Is a buyback coming?

CEO Sam Tabar said the company is considering share repurchases because its stock trades at a discount to net asset value. But he stopped short of committing. Any repurchase program would require shareholder approval, and management has not committed to pursuing one.

What does this change for Bit Digital? Operationally, the company is now an Ethereum-treasury and AI-infrastructure holding vehicle with legacy Bitcoin mining winding down. Its earnings will track three variables: Ethereum's price, WhiteFiber's data center ramp, and a growing convertible debt load.

The next catalyst is procedural: any buyback requires a shareholder vote, and the pace of NC-1's revenue contribution will determine whether the colocation segment can keep growing at anything near its current rate.