Bit Digital’s Ethereum holdings reach $439M as Q3 profit rebounds - Crypto News

The Nasdaq-listed company, trading under ticker BTBT, reported holding 163,725.9 ETH and ETH-equivalent assets valued at $439.4 million as of September 30. This represents a significant pivot from its previous focus on Bitcoin mining, with the company recording $27.1 million in revenue for the quarter, down 11% from the previous year.

Bit Digital's financial recovery is notable given its $107.2 million net loss in the second quarter of 2026. The company achieved a gross profit of $15.2 million with a margin of 56.1%, reflecting improved performance despite the revenue decline.

Ethereum Treasury Details

Of the company's Ethereum holdings, 74,606.4 ETH were held directly, including coins staked through its validator partner, with a reported fair value of $200.2 million. The total treasury also includes approximately 15,437 ETH and ETH-equivalents in an externally managed fund, along with liquid-staking positions measured on an ETH-converted basis.

During the quarter, Bit Digital moved 73,683 ETH into liquid staking and received 66,192 LsETH tokens. The company pledged 19,000 LsETH as loan collateral, recording a $37.1 million digital asset collateral receivable, while the remaining 47,192 LsETH served as a reserve against potential margin requirements.

Bit Digital sold 1,625 ETH for $3.4 million during the quarter at an average price of $2,114.62 but made no additional Ethereum purchases. The company recorded a $3.2 million non-cash impairment on LsETH, explaining that this accounting treatment differs from directly held ETH and does not represent a realized trading loss.

WhiteFiber Growth

Bit Digital's results include the financial performance of WhiteFiber, the AI infrastructure company in which it holds a controlling stake. WhiteFiber's colocation revenue reached $5.6 million, up 232% year over year, supported by its MTL-3 facility and initial operations at the NC-1 campus. Cloud services generated $18.1 million, while Bitcoin mining contributed only $2 million, down from $7.4 million a year earlier.

Native Ethereum staking generated 474 ETH during the third quarter, bringing total rewards earned through September to approximately 1,863 ETH. Staking revenue reached $1 million, up 14% from the preceding quarter but down from $2.9 million a year earlier, which the company attributed to moving ETH into liquid staking to support WhiteFiber financing.

Share Buyback Consideration

As of September 30, Bit Digital owned 27,043,750 WhiteFiber shares, representing 59.7% of the company's outstanding stock, with an implied market value of approximately $487 million. The company ended September with $143.5 million in cash and cash equivalents, including approximately $138.5 million held at WhiteFiber.

Following the quarter, Bit Digital pledged another 45,000 LsETH to support WhiteFiber's $70 million borrowing in October. CEO Sam Tabar indicated that management was considering share buybacks, though shareholder approval would be necessary before introducing such a program.

While Bitcoin mining remains profitable at the gross-margin level, Bit Digital stated it does not expect to commit meaningful new growth or maintenance capital to the business, further signaling its strategic shift toward Ethereum and AI infrastructure.