Bit Digital Q1 revenue falls 14% on weaker ETH staking, mining

Nasdaq-listed Bit Digital reported first-quarter revenue of $27.9 million, a 13.6% decline from the fourth quarter of 2025. The company attributed the drop to lower cloud services revenue, weaker ETH staking income and reduced digital-asset mining receipts.

ETH staking revenue fell 29.4% to $2.3 million. To increase liquidity, Bit Digital repositioned about 70,000 ETH into liquid staking during the quarter.

Cloud services revenue declined 13.1% to $16.8 million, while co-location services generated $4.8 million. Crypto mining revenue dropped 32.9% to $3.7 million, which the company attributed to lower bitcoin production and weaker average BTC prices.

Net loss narrowed to $146.7 million in Q1 from a $185.3 million loss in Q4 2025. The company said results were affected by noncash mark-to-market adjustments on digital assets.

At March 31, Bit Digital held about 154,444 ETH, valued at roughly $327 million at quarter-end, with an average acquisition cost of $3,045 per ether. Ethereum fell about 29% during the quarter to $2,104 on March 31 and was trading near $2,245 at the time of the report.

The company continued reducing its exposure to bitcoin mining and has shifted capital toward Ethereum and infrastructure-related opportunities. CEO Sam Tabar said the firm is positioned at the intersection of AI and Ethereum and highlighted its compute and settlement capabilities.

WhiteFiber, an HPC unit spun out of Bit Digital AI, completed an initial public offering in August 2025 that raised nearly $160 million. Bit Digital owned about 27 million WhiteFiber shares and retained a majority stake at the end of March.

Bit Digital's stock closed the regular session up 4.9% on the day the earnings were released, then fell 3.7% in after-hours trading. The shares have risen about 39% over the past month and remain down roughly 7% over six months.

The company began transitioning away from bitcoin mining to an Ethereum staking and treasury strategy in June 2025 and launched Bit Digital AI in 2023 to diversify into high-performance computing.