Bit Digital returned to profitability, reporting third-quarter 2026 net income of $28.5 million, or $0.08 per share.
The result marked a sharp turnaround from the previous quarter, when the company recorded a net loss of $107.2 million. Investors, however, focused on revenue rather than the profit.
Quarterly revenue was $27.1 million, down 11% from $30.5 million in the same quarter of 2025. It missed analyst expectations, while earnings per share beat forecasts.
Bit Digital shares (NASDAQ: BTBT) fell nearly 9% in pre-market trading following the release.
Revenue sources: gains and declines
Bitcoin mining accounted for much of the revenue decline. Bit Digital is winding down its mining operations, and revenue from digital asset mining fell to $2.0 million for the quarter.
Non-operating items also contributed to the profit. Results included approximately $16.3 million related to digital asset gains and impairments.
WhiteFiber, Inc., Bit Digital’s AI and cloud infrastructure subsidiary, provided a brighter spot. Bit Digital owns a 59.7% stake in the company, where colocation revenue rose 232% year over year to $5.6 million.
WhiteFiber’s cloud services revenue was unchanged over the period.
The Ethereum side of the ledger
Bit Digital has been shifting resources toward Ethereum, both as a treasury asset and as a source of staking income. It holds approximately 163,726 $ETH, worth roughly $439 million.
Quarterly $ETH staking revenue was $1.0 million, down from $2.9 million a year earlier but up 14% from the previous quarter.
Bit Digital reported cash reserves of $143.5 million as of September 30, 2026. WhiteFiber held $138.5 million of that amount.
Background: a company changing lanes
Bit Digital built its reputation as a Bitcoin miner, but its current strategy has shifted elsewhere: Ethereum holdings and staking on one side, and AI and cloud infrastructure through WhiteFiber on the other.
The shift from a $107.2 million loss in Q2 to a $28.5 million profit in Q3 illustrates how much these swings can affect the bottom line.
What this means for investors
The pre-market decline suggests investors are currently more focused on operating revenue than accounting gains. Colocation revenue growth of 232% is a strong signal, and its $5.6 million contribution already exceeds the $2.0 million generated by mining this quarter. Still, total revenue fell.
Staking revenue is another factor to watch. It remains well below last year’s level, so the 14% quarter-over-quarter increase will need to continue for the segment to contribute meaningfully to revenue.
Bit Digital owns 59.7% of WhiteFiber, which holds $138.5 million of the company’s $143.5 million in cash. As a result, BTBT investors effectively have exposure to both an $ETH treasury and a majority stake in an AI infrastructure company.
With roughly $439 million in $ETH on its books and a meaningful portion of this quarter’s profit linked to digital asset gains and impairments, future results could vary considerably depending on the token’s price.
Bit Digital has reported a profitable quarter, but revenue is still declining. In early trading, at least, the market focused on the latter.
