Bit Digital returns to profit as Ethereum holdings reach $439.4M

Revenue was $27.1 million, down 11% from $30.5 million a year earlier. Gross profit reached $15.2 million, a margin of 56.1%. The results include WhiteFiber, the AI infrastructure company in which Bit Digital holds a controlling stake. Digital-asset valuation changes and other specified items contributed approximately $16.3 million to third-quarter profit.

The company reported 163,725.9 ETH and ETH-equivalent assets, valued using Ethereum’s September 30 closing price of $2,684. Direct holdings totaled 74,606.4 ETH, including coins staked through a validator partner, with a fair value of $200.2 million. The broader treasury also included about 15,437 ETH and equivalents in an externally managed fund and liquid-staking positions.

Bit Digital moved 73,683 ETH into liquid staking during the quarter and received 66,192 LsETH tokens. It pledged 19,000 LsETH as loan collateral, recording a $37.1 million digital-asset collateral receivable. The remaining 47,192 LsETH had a book value of $98.3 million and was held as a reserve against potential margin requirements. A $3.2 million non-cash impairment on LsETH did not represent a realized trading loss, the company said. Bit Digital sold 1,625 ETH for $3.4 million at an average $2,114.62 and made no ETH purchases.

Ethereum traded near $2,050 on November 12, according to crypto.news market data. At that price, the reported ETH-equivalent position would be worth about $336 million—roughly $103 million less than its September 30 valuation. That estimate reflects the price change, not a newly reported loss; the treasury includes assets whose values and accounting treatment can differ.

Native staking generated 474 ETH in the quarter, bringing rewards earned through September to about 1,863 ETH. Staking revenue was $1 million, up 14% from the previous quarter but down from $2.9 million a year earlier. CEO Sam Tabar attributed the annual decline to moving ETH into liquid staking to support WhiteFiber financing. “Our third-quarter results reflect the continued shift toward Ethereum and AI infrastructure,” he said.

WhiteFiber colocation revenue rose 232% year over year to $5.6 million, supported by its MTL-3 facility and the initial operations of its NC-1 campus. Cloud services generated $18.1 million, while Bitcoin mining revenue fell to $2 million from $7.4 million a year earlier. Bit Digital said mining remained profitable at the gross-margin level but that it did not expect significant new growth or maintenance investment in the business.

At quarter-end, Bit Digital owned 27,043,750 WhiteFiber shares, or 59.7% of the company, with an implied value of about $487 million based on WhiteFiber’s $18.01 closing price. Bit Digital had $143.5 million in cash and cash equivalents, including approximately $138.5 million at WhiteFiber. In October, it pledged another 45,000 LsETH to support WhiteFiber’s $70 million borrowing.

Tabar said share repurchases remained under consideration but would require shareholder approval. He said the persistent discount to net asset value made buybacks worth serious consideration, while cautioning that selling ETH to fund them would reduce staking income and exposure to potential price gains.