Bit Digital Q1 Revenue Falls 14% as ETH Staking Income Slides; Net Loss Narrows

Q1 revenue declines on weaker staking and services

Bit Digital, a Nasdaq-listed Ethereum (ETH) treasury company, reported lower revenue and continued losses in the first quarter as it further shifted its business away from bitcoin mining and toward Ethereum staking and treasury activities.

The company posted $27.9 million in total revenue for the first quarter, representing a 13.6% decline from the fourth quarter of 2025, according to an earnings report released Thursday. Bit Digital attributed the quarter-on-quarter drop to lower cloud services revenue, lower ETH staking revenue, and lower digital asset mining revenue.

ETH staking revenue drops amid price and balance changes

Revenue from ETH staking fell to $2.3 million, down 29.4% from the prior quarter. The company said the decrease reflected lower average ether prices during the period as well as lower natively staked balances.

To preserve balance-sheet flexibility, Bit Digital said it repositioned roughly 70,000 ETH into liquid staking in order to “maintain treasury flexibility.”

Cloud services and co-location results

Bit Digital’s cloud services segment generated $16.8 million in revenue for the quarter, a 13.1% decline from Q4 2025. The company also reported $4.8 million in revenue from co-location services.

Mining revenue declines as BTC output and pricing weaken

Revenue from crypto mining fell 32.9% quarter-on-quarter to $3.7 million. Bit Digital linked the decline to decreased BTC production and weaker average BTC prices during the quarter.

Net loss improves, but digital asset revaluations weigh on results

Bit Digital reported a net loss of $146.7 million for the first quarter, compared with a $185.3 million net loss in the fourth quarter of 2025.

The company said its financial results “continued to be impacted by non-cash mark-to-market adjustments on digital assets,” highlighting how crypto price movements can materially affect reported earnings even without realized sales.

ETH treasury position and market performance

As of the end of March, Bit Digital held approximately 154,444 ETH, valued at roughly $327 million at the time. The company said the average acquisition price across its ether holdings was $3,045 as of quarter-end.

During the first quarter, Ethereum fell 29% to $2,104 on March 31. ETH was trading at $2,245 on Friday, according to The Block’s ETH price data.

Continued wind-down of bitcoin mining and pivot to Ethereum

Bit Digital has been repositioning its operations for several quarters. In June 2025, the company said it had started moving from bitcoin mining toward an Ethereum staking and treasury strategy. The company has also been an early mover among mining firms expanding into high-performance computing (HPC), having launched Bit Digital AI in 2023.

In the latest earnings report, Bit Digital said it continued reducing exposure to bitcoin mining during the quarter. While “mining remains cash flow generative,” the company said it is “no longer a strategic growth priority,” adding that capital allocation is expected to keep shifting toward Ethereum and infrastructure-related opportunities.

CEO Sam Tabar said the company believes it is positioned at the intersection of AI and Ethereum, citing Bit Digital’s infrastructure and treasury approach.

WhiteFiber stake and IPO details

Bit Digital’s HPC subsidiary, WhiteFiber, raised nearly $160 million in an initial public offering in August 2025. As of the end of March, Bit Digital reported it held about 27 million WhiteFiber shares and maintained a majority ownership stake.

Stock reaction

Bit Digital shares fell 3.7% in after-hours trading Thursday after ending the regular session up 4.9%. The stock has gained 39% over the past month, though it remains down 7% over the past six months.