Bit Digital misses Q3 revenue estimates as Ethereum gains lift profit

Bit Digital’s revenue fell 11% to $27.07 million, missing analyst consensus estimates of $32.88 million.

Gross profit reached $15.2 million, with a margin of 56.1%, and the company posted net income of $28.5 million, or $0.08 per diluted share.

This turnaround from a $107.2 million net loss in the previous quarter was driven by digital asset gains, impairments, and other nonoperating items totaling $16.3 million.

Shifting focus to colocation and cloud

Colocation revenue surged 232% year-over-year to $5.6 million, supported by the initial contribution from WhiteFiber’s NC-1 data center campus.

Cloud services revenue reached $18.1 million, up slightly from the previous year, while Ethereum staking revenue fell to $1 million from $2.9 million.

Bitcoin mining revenue dropped to $2 million from $7.4 million, with production declining to 28.4 BTC from 64.9 BTC.

Ethereum holdings and financial outlook

As of September 30, Bit Digital held approximately 163,726 ETH and ETH equivalents valued at $439.4 million.

The company sold 1,625 ETH for $3.4 million during the quarter and made no new ETH purchases.

Bit Digital maintained a 59.7% ownership stake in WhiteFiber, valued at approximately $487 million at quarter end.

Its consolidated cash balance reached $143.5 million, while convertible notes totaled $445.3 million, up from $336.2 million in June.

Strategic pivot and potential share repurchases

Sam Tabar, CEO of Bit Digital, said the company is considering share repurchases because its stock trades at a discount to net asset value.

However, any repurchase program would require shareholder approval, and management has not committed to pursuing one.

Bit Digital stated that Bitcoin mining is no longer a strategic growth priority as it continues allocating capital toward Ethereum and AI infrastructure.