Bit Digital Reports $28.5M Profit on $439M Ethereum Treasury

By Daniel Okafor

Bit Digital reported $28.5 million in third-quarter net income and an Ethereum treasury valued at $439.4 million as of September 30, according to its November 12 earnings release.

The Nasdaq-listed company, which trades as BTBT, posted revenue of $27.1 million, down 11% from $30.5 million a year earlier. Gross profit reached $15.2 million, with a gross margin of 56.1%.

The profit reversed a $107.2 million second-quarter net loss, after a $146.7 million loss in the first quarter. About $16.3 million of the third-quarter result came from digital asset valuation changes and other specified items.

How has the Ethereum treasury changed?

Bit Digital held approximately 154,444 ETH at the end of March. By September 30, it reported 163,725.9 ETH and ETH-equivalent assets valued at $439.4 million using Ethereum’s closing price of $2,684.

Ethereum traded near $2,050 on November 12, according to crypto.news market data. At that level, the reported ETH-equivalent position would have been worth approximately $336 million, about $103 million below the September 30 valuation.

That difference reflects a change in Ethereum’s price, not a newly reported loss or the company’s accounting value. The treasury includes liquid-staking tokens and externally managed assets whose values and accounting treatment can differ.

What does the treasury contain?

• Direct holdings: 74,606.4 ETH, including coins staked through the company’s validator partner, carried a reported fair value of $200.2 million.
• Externally managed exposure: roughly 15,437 ETH and ETH-equivalents, plus liquid-staking positions measured on an ETH-converted basis.
• Staking activity: Bit Digital moved 73,683 ETH into liquid staking during the quarter and received 66,192 LsETH tokens.
• Collateral: The company pledged 19,000 LsETH as loan collateral, recording a $37.1 million digital asset collateral receivable. The remaining 47,192 LsETH had a book value of $98.3 million and served as a reserve against potential margin requirements.
• Sales and impairment: Bit Digital sold 1,625 ETH for $3.4 million at an average $2,114.62 and made no ETH purchases. It recorded a $3.2 million non-cash LsETH impairment, which the company said reflected different accounting treatment from directly held ETH and was not a realized trading loss.

How did staking and WhiteFiber shape the quarter?

Native Ethereum staking generated 474 ETH during the third quarter, bringing rewards through September to approximately 1,863 ETH. Staking revenue reached $1 million, up 14% from the preceding quarter but down from $2.9 million a year earlier.

Bit Digital attributed the annual decline to moving ETH into liquid staking to support WhiteFiber financing. Higher Ethereum prices during the reporting period helped quarterly staking revenue.

“Our third-quarter results reflect the continued shift toward Ethereum and AI infrastructure,” CEO Sam Tabar said. He also noted that native ETH staking revenue grew 14% as the company returned to positive earnings.

WhiteFiber, the AI infrastructure company in which Bit Digital holds a controlling stake, generated $5.6 million in colocation revenue, up 232% year over year. The company credited its MTL-3 facility and initial operations at the NC-1 campus.

Cloud services contributed $18.1 million, while Bitcoin mining produced $2 million, down from $7.4 million a year earlier. Bit Digital had previously arranged a $100 million loan facility to finance WhiteFiber’s infrastructure development.

At September 30, Bit Digital held 27,043,750 WhiteFiber shares, representing 59.7% of its outstanding stock. The holding had an implied market value of approximately $487 million, based on WhiteFiber’s $18.01 closing share price.

After the quarter, Bit Digital pledged another 45,000 LsETH to support WhiteFiber’s $70 million borrowing in October. It ended September with $143.5 million in cash and cash equivalents, including approximately $138.5 million held at WhiteFiber.

What could share repurchases change?

Tabar said management was considering whether repurchasing BTBT shares could benefit investors, but shareholder approval would be required before introducing a program.

“The persistent discount to our net asset value makes repurchases an option that deserves serious consideration,” Tabar said. He cautioned that selling ETH to finance buybacks would reduce staking income and Bit Digital’s exposure to potential ETH price gains.

Bitcoin mining remained profitable at the gross-margin level, but Bit Digital said it did not expect to commit meaningful new growth or maintenance capital to the business.

Any BTBT buyback needs shareholder approval, and Bit Digital does not expect meaningful new growth or maintenance capital for Bitcoin mining, leaving ETH sales, staking income and LsETH collateral as funding levers for WhiteFiber.