Bit Digital (BTBT) Stock Drops as $20M ETH Bet Goes Underwater Fast

TLDR

• Bit Digital (BTBT) bought 8,568 ETH for $20 million on May 11 at an average price of $2,334 per token.
• ETH has since dropped below $2,000, leaving the position sitting on an unrealized loss of around $3 million.
• The purchase was the firm’s first ETH buy since October, when crypto markets peaked.
• Bit Digital now holds 158,462 ETH in its treasury, worth approximately $313 million at current prices.
• The company reported Q1 2026 revenue of $27.5 million, beating forecasts, but remains unprofitable with negative EBITDA of $144 million over the last 12 months.

Bit Digital (BTBT) bought $20 million worth of Ethereum on May 11, its first ETH purchase since October — and it’s already underwater.

Bit Digital has purchased 8,568 ETH for $20 million USD, bringing its total holdings to 158,461.75 ETH.

As a Strategic Asset Company, we execute when market conditions align with our thesis, deploying capital with discipline across Ethereum ecosystem strategies, AI… pic.twitter.com/XEi88z3Nv0

— Bit Digital, Inc. NASDAQ:BTBT (@BitDigital_BTBT) May 28, 2026

The New York-based firm picked up 8,568 ETH at an average price of $2,334 per token. Since then, ETH has slid below $2,000, putting the position roughly $3 million in the red. That’s a drop of more than 15% in just a few weeks.

BTBT stock currently trades at $2.03, giving the company a market cap of around $709 million.

Bit Digital, Inc., BTBT

CEO Sam Tabar said the “timing reflects our view that market conditions had reset to a level consistent with our thesis.” In March, he called ETH’s weakness a reset, not an ending — pointing to leverage unwinding rather than any deterioration in the network’s fundamentals.

Tabar has cited stablecoin settlement, tokenized assets, and AI-related activity as long-term demand drivers for Ethereum. That thesis is getting tested early.

A Treasury Strategy Under Pressure

The purchase brings Bit Digital’s total Ethereum holdings to roughly 158,462 tokens, worth about $313 million at current prices. Part of that ETH is staked directly, while another portion runs through liquid staking products to keep some flexibility.

Most digital asset treasury firms have pulled back on accumulation in recent months. Falling crypto prices and widening gaps between stock prices and the underlying crypto holdings have pushed many firms to conserve cash or offload assets. Bit Digital went the other way.

The company made the pivot to an Ethereum-focused treasury strategy last year, stepping away from its bitcoin mining roots. It now calls itself a “Strategic Asset Company,” with three core areas: ETH accumulation, AI and high-performance computing infrastructure through subsidiary WhiteFiber (WYFI), and strategic acquisitions.

The WhiteFiber angle gives it some exposure to the AI infrastructure buildout, which has attracted investor interest across the sector.

Financials: Revenue Beat, But Still Losing Money

Bit Digital reported Q1 2026 revenue of $27.5 million, which came in above analyst expectations of $25.72 million — a beat of roughly 6.9%. Earnings per share came in at -$0.04, in line with forecasts.

Despite the top-line beat, the company carries a negative EBITDA of $144 million over the trailing twelve months. InvestingPro flagged the stock as currently overvalued relative to its estimated fair value.

Bit Digital also recently originated a $100 million delayed draw term loan facility for a WhiteFiber subsidiary. That facility can be expanded to $150 million by mutual agreement. B. Riley Securities purchased a portion of the term loans from Bit Digital Capital.

ETH was trading near $1,980 as of Wednesday, down roughly 3.9% on the day.

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