Bit Digital (BTBT) Stock Slides After Q1 Revenue Miss and Ethereum Headwinds

Key Highlights

• Bit Digital’s Q1 performance shows revenue contraction tied to ETH market weakness
• BTBT shares decline in after-hours trading following disappointing quarterly results
• Revenue shortfall driven by reduced staking yields and mining output
• Ethereum treasury holdings generate unrealized losses affecting Q1 financials
• WhiteFiber investment provides offsetting value amid challenging crypto environment

Bit Digital (BTBT) experienced a challenging first quarter with declining revenues and Ethereum-related headwinds impacting financial performance. BTBT shares ended regular trading at $2.13, gaining 4.93%, before retreating to $2.02 in extended hours, representing a 5.16% decline. The stock exhibited notable volatility throughout the session with pronounced price swings before settling near $2.05.

Bit Digital, Inc., BTBT

Top-Line Performance Shows Broad-Based Weakness

Bit Digital recorded total revenue of $27.9 million for the quarter, representing a 13.6% sequential decline from the previous quarter’s $32.3 million. The company attributed this downturn to multiple factors including diminished cloud service revenues, compressed ETH staking returns, and weakened digital asset mining performance. The sole bright spot emerged from colocation operations, which benefited from MTL-3’s full-quarter contribution.

The cloud services division produced $16.8 million in revenue, sliding 13.1% quarter-over-quarter. Digital asset mining operations experienced a sharper 32.9% contraction to $3.7 million, reflecting both reduced Bitcoin production volumes and lower cryptocurrency valuations. Colocation services provided a partial offset with a 23.9% increase to $4.8 million in revenue.

Overall segment gross profit totaled $15.4 million, with profitability metrics diverging across business units. The cloud services division achieved a gross margin approaching 59.5%, while colocation operations delivered a comparable 59.3% margin. ETH staking operations maintained the highest profitability profile with a gross margin near 94.7%.

Ethereum Holdings Create Balance Sheet Pressure

Bit Digital maintained a substantial Ethereum position of 155,444.4 ETH at quarter-end on March 31, 2026. Using the closing ETH price of approximately $2,104, the company’s holdings carried a market value near $327.0 million. However, the average acquisition cost of roughly $3,045 per ETH creates significant unrealized losses.

ETH staking revenue experienced a 29.4% sequential decline to $2.3 million. This reduction stemmed from both compressed Ethereum market prices and a smaller base of natively staked assets. The company repositioned approximately 70,000 ETH into liquid staking Ethereum (LsETH) to enhance treasury management flexibility.

As of April 30, approximately 60,677 ETH remained in native staking across treasury holdings. Bit Digital continues to position Ethereum as a core element of its strategic approach, encompassing treasury management, staking operations, and capital deployment. This framework enables yield generation while maintaining balance sheet liquidity options.

WhiteFiber Holdings and Liquidity Metrics

Bit Digital maintains consolidated financial reporting for WhiteFiber, its majority-controlled artificial intelligence and high-performance computing infrastructure subsidiary. Consequently, quarterly results incorporate WhiteFiber’s complete operating performance. This investment diversifies Bit Digital’s portfolio beyond pure Ethereum exposure into AI-focused infrastructure.

The company’s WhiteFiber position consists of 27,043,750 shares. Utilizing WhiteFiber’s Nasdaq closing price of $11.91, this equity stake represents an implied market value of $322.1 million. The convertible note obligations expanded to $334.2 million following WhiteFiber’s recent note issuance.

Bit Digital posted a net loss attributable to shareholders of $146.7 million for the quarter. This represents an improvement from the $185.3 million loss recorded in Q4 2025. Adjusted EBITDA came in at negative $9.4 million, while cash and equivalents declined to $79.5 million.