Bit Digital reported lower first-quarter revenue and another sharp quarterly loss as the Nasdaq-listed company continues to redirect capital from Bitcoin mining to its Ethereum storage and treasury operations.
summary
- Bit Digital reported a net loss of $146.7 million as revenue from ETH storage, cloud services and cryptocurrency mining declined in the first quarter.
- The company held over 154,000 ETH at the end of March while continuing to reduce exposure to Bitcoin mining.
- Bit Digital said future capital deployment will continue to focus on Ethereum operations and infrastructure businesses.
According to Bit Digital’s earnings a report Released Thursday, first-quarter revenue was $27.9 million, down 13.6% from the fourth quarter of 2025, after weaker results across its cloud services, ETH stakes, and cryptocurrency mining businesses.
Cloud services remained the company’s largest revenue segment at $16.8 million, although the number declined 13.1% quarter-over-quarter. Colocation services added another $4.8 million, while cryptocurrency mining revenues fell 32.9% to $3.7 million after lower Bitcoin production and lower Bitcoin prices impacted revenues 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 fell and the amount of ETH accumulated domestically declined. During the quarter, the company moved approximately 70,000 ETH into liquid collateral arrangements to maintain treasury resilience.
Meanwhile, the company reported a net loss of $146.7 million for the quarter, an improvement from the $185.3 million loss recorded in the fourth quarter of 2025. Bit Digital said non-cash market-to-market adjustments associated with digital assets continued to impact earnings results.
Ethereum treasury strategy expands
By the end of March, Bit Digital owned approximately 154,444 ETH, worth about $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 It has been detected In November 2025, its Ethereum holdings had risen to approximately 153,547 ETH worth approximately $590.5 million at the end of October. In this previous update, the company said that it acquired more than 31,000 ETH during the month while holding nearly 86% of its holdings to generate yield.
Back in June 2025, Bit Digital publicly confirmed that it had begun moving away from Bitcoin mining in favor of an Ethereum-focused treasury and staking model. CEO Sam Tabar previously described Ethereum as a basic settlement layer tied to tokenized real-world assets and stablecoin activity, contrasting Bitcoin’s role primarily as a store of value.
Thursday’s report showed that the company is continuing on this path. Bitcoin mining still generates cash flow but is no longer a primary expansion strategy, Bit Digital said, adding that future capital deployment will continue to lean toward Ethereum and infrastructure-related companies.
Speaking in the earnings release, Tabar said the company believes it is early on at the intersection of AI infrastructure and Ethereum-based financial rails. He pointed to WhiteFiber, Bit Digital AI’s high-performance computing business, along with the company’s Ethereum vault and staking operations as part of this thesis.
WhiteFiber previously raised approximately $160 million through an initial public offering in August 2025. As of March 31, Bit Digital owned approximately 27 million shares of WhiteFiber and maintained majority ownership in the company.
Meanwhile, Ethereum prices remained under pressure during the quarter. Ethereum fell nearly 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 fell 3.7% in after-hours trading on Thursday after rising 4.9% during the regular session. Despite the pullback, the stock is still up 39% over the past month, though it’s still down 7% over the past six months.
