Bit Digital Returns to Profit With $28.5 Million Q3, Holds 163,726 ETH

Bit Digital posted $28.5 million in third-quarter net income attributable to shareholders, reversing a $107.2 million second-quarter loss, and ended September holding 163,725.9 ETH worth roughly $439.4 million at a reference price near $2,684 per token.

The company disclosed the results in its quarterly report. Gains on digital assets drove most of the profit. Bit Digital sold 1,625 ETH during the quarter at an average price of $2,114.62 and bought none — a disciplined treasury posture that left the ETH position essentially intact while monetizing a small slice.

The swing matters operationally. A $107.2 million loss in Q2 had pressured the balance sheet; the Q3 print, paired with a cash build, gives the company room to keep running its Ether-accumulation strategy without forced sales.

How strong is the balance sheet now?

Cash and cash equivalents stood at $143.5 million on Sept. 30, up from $83.6 million on June 30 — a $59.9 million increase in a single quarter. Total revenue came in at $27.1 million, down 11% from $30.5 million a year earlier, so the profit came from the treasury, not the top line.

Bit Digital deepened its staking infrastructure during the period. The company converted 73,683 ETH into liquid staking and received 66,192 LsETH in return. It deployed that position aggressively:

• 19,000 LsETH posted as loan collateral
• 47,192 LsETH held as a margin buffer
• $3.2 million noncash impairment recorded on LsETH

That structure turns a passive ETH holding into financing capacity, but it adds mark-to-market risk — the impairment line shows the cost when liquid-staking tokens trade below their redemption value.

Why did staking revenue fall?

Staking revenue was $1 million, down from $2.9 million a year earlier. Bit Digital attributed most of the decline to converting ETH into liquid staking assets now pledged as collateral for WhiteFiber financing. In effect, yield-bearing ETH moved from the revenue line into the financing stack supporting its majority-owned subsidiary.

The WhiteFiber stake itself is now central to the story. Bit Digital held 59.7% of WhiteFiber as of Sept. 30 and said it does not plan to sell the stake during 2026.

Cloud services remained the largest revenue driver at $18.1 million. Hosting revenue rose 232% year over year to $5.6 million as the MTL-3 site reached full operation and the first 20 megawatts at NC-1 began generating revenue. That capacity ramp is the clearest growth vector in the operating business.

Bitcoin mining continues to shrink. The segment produced $2 million in revenue, with Bit Digital mining 28.4 BTC versus 64.9 BTC a year earlier as it gradually exits the business. The wind-down frees capital and energy allocation for the ETH treasury and the WhiteFiber cloud-and-hosting platform.

What comes next?

The shape of the company is now legible: an ETH-heavy treasury financed partly through liquid staking collateral, a majority-owned data-infrastructure subsidiary it intends to hold through 2026, and a residual Bitcoin mining operation in managed retreat. With NC-1's initial 20 megawatts just starting to contribute, the next few quarters will show whether the hosting ramp can offset a staking line that has become collateral rather than revenue.