Bit Digital Reports Revenue Drop and Wider Q1 Net Loss Amid Ethereum Pivot

TL;DR:

• Bit Digital recorded total revenues of $27.9 million in Q1 2026, a 13.6% decline compared to Q4 2025.
• The drop was driven by lower ETH staking revenues, which fell 29.4% to $2.3 million, and by reduced BTC production.
• The company reported a net loss of $146.7 million, though smaller than the $185.3 million loss recorded in the previous quarter.

Bit Digital reported a 13.6% revenue decline in Q1 2026, generating $27.9 million in total revenues compared to $32.3 million in Q4 2025. The earnings report notes that the decrease was driven primarily by lower revenues from cloud services, ETH staking and digital asset mining.

The Ethereum staking segment was the most affected within the company’s business: revenues fell 29.4% to $2.3 million, as a result of lower average Ethereum prices and a reduction in native staking balances.

Bit Digital’s Numbers

Bit Digital repositioned approximately 70,000 ETH into liquid staking to preserve treasury flexibility. Meanwhile, cloud services fell 13.1% year-over-year to $16.8 million, and mining revenues dropped 32.9% to $3.7 million, impacted by lower BTC production and weaker prices during the period.

The net loss for the quarter was $146.7 million, an improvement from the $185.3 million recorded in Q4 2025. The company attributed the impact to non-cash fair value adjustments on its holdings. As of the end of March, Bit Digital held approximately 154,444 ETH, valued at around $327 million, with an average acquisition price of $3,045 per unit.

The Shift Toward Ethereum and AI

Bit Digital began its transition in June 2025, moving away from bitcoin mining toward an Ethereum-based treasury and staking strategy. In its report, the company reaffirmed that direction: “Mining remains a cash flow generator, but it is no longer a strategic growth priority,” it stated. Capital, the firm noted, will be redirected toward Ethereum and infrastructure.

The company’s CEO, Sam Tabar, stated that the company was “early” in identifying the industry’s major shifts and said he sees a new opportunity in the convergence between artificial intelligence and Ethereum. In that context, he mentioned WhiteFiber, a high-performance computing subsidiary that raised approximately $160 million in its IPO in August 2025. At the close of the first quarter, Bit Digital held approximately 27 million WhiteFiber shares and retained a majority stake in the company.

Over the past thirty days, Bit Digital shares have gained 39%, though the stock remains 7% below its value from six months ago.