Bit Digital, the Nasdaq-listed crypto miner, reported a first-quarter net loss of $146.7 million, with revenue falling 13.6% sequentially to $27.9 million. The company pushed deeper into its strategy of shifting capital from bitcoin mining toward Ethereum staking and treasury operations.
Cloud revenue shrinks; mining and staking slump
Cloud services remained Bit Digital's largest revenue segment at $16.8 million, down 13.1% QoQ. Co-location added $4.8 million, while crypto mining revenue plunged 32.9% to $3.7 million, hit by lower bitcoin production and softer BTC prices. Ethereum staking income dropped 29.4% from the prior quarter to $2.3 million, as average ether prices declined and the amount of natively staked ETH fell. During the quarter, the company moved nearly 70,000 ETH into liquid staking arrangements to preserve treasury flexibility.
The net loss of $146.7 million improved from the $185.3 million loss in Q4 2025. Bit Digital said non-cash mark-to-market adjustments tied to digital assets continued weighing on earnings. As of March 31, the company held approximately 154,444 ETH valued at roughly $327 million, with an average acquisition cost of $3,045 per token.
Ethereum holdings swell as strategic pivot deepens
The latest ETH stash is up from roughly 153,547 tokens reported in November 2025, when Bit Digital disclosed it had acquired over 31,000 ETH that month and staked nearly 86% of its holdings. The firm publicly confirmed its pivot from bitcoin mining toward an Ethereum-focused treasury and staking model in June 2025. CEO Sam Tabar previously described Ethereum as a foundational settlement layer tied to tokenized real-world assets and stablecoin activity, contrasting with bitcoin's store-of-value role.
In the earnings release, Tabar said the company sees itself positioned at the intersection of AI infrastructure and Ethereum-based financial rails. He highlighted WhiteFiber, Bit Digital AI's high-performance computing subsidiary, alongside the Ethereum treasury and staking operations as key pillars. WhiteFiber raised nearly $160 million via an IPO in August 2025; Bit Digital still holds about 27 million shares and retains majority ownership.
Bit Digital stated that bitcoin mining still generates cash flow but no longer represents its primary expansion strategy, adding that future capital deployment would continue leaning toward Ethereum and infrastructure-related businesses. Ethereum prices fell roughly 29% during Q1 to $2,104 by March 31, and traded near $2,245 on Friday after the earnings release. Investors reacted cautiously: shares dropped 3.7% in after-hours trading after gaining 4.9% during the regular session. Despite the pullback, the stock advanced 39% over the past month but remains down 7% across the last six months.