Bit Digital reports 14% revenue drop in Q1, driven by lower ETH staking rewards

Bit Digital, an Ethereum (ETH) treasury firm, reported a revenue decline and a widened net loss in the first quarter of this year, as it continued shifting away from bitcoin mining toward Ethereum-focused strategies.

The Nasdaq-listed company generated $27.9 million in total revenue in the first quarter, down 13.6% from the fourth quarter of 2025, according to its earnings report released Thursday. 

The revenue decline was mainly driven by "lower cloud services revenue, lower ETH staking revenue, and lower digital asset mining revenue," the company said.

Specifically, revenue from ETH staking fell $29.4% to $2.3 million from the previous quarter, reflecting lower average ether prices and lower natively staked balances. The company said it repositioned roughly 70,000 ETH into liquid staking to "maintain treasury flexibility."

Cloud services revenue declined 13.1% quarter-on-quarter to $16.8 million, while co-location services generated $4.8 million in revenue. Crypto mining revenue fell 32.9% from the previous quarter to $3.7 million, which the company attributed to decreased BTC production and weaker average BTC prices during the period.

Meanwhile, Bit Digital posted a net loss of $146.7 million for the first quarter, compared to a $185.3 million net loss in Q4 2025. "Results continued to be impacted by non-cash mark-to-market adjustments on digital assets," it said.

As of the end of March, Bit Digital held roughly 154,444 ETH, worth about $327 million at the time. The average acquisition price of all its ether holdings stood at $3,045 at quarter-end.

Ethereum fell 29% during the quarter to $2,104 on March 31, and was trading at $2,245 on Friday, according to The Block's ETH price page.

Winding down bitcoin mining

In June 2025, Bit Digital said it had begun transitioning from bitcoin mining to an Ethereum staking and treasury strategy. The company was also among the first crypto mining firms to begin diversifying into high-performance computing (HPC), launching Bit Digital AI in 2023.

In Thursday's earnings report, Bit Digital said it continued to reduce exposure to bitcoin mining during the quarter. 

"Mining remains cash flow generative but is no longer a strategic growth priority," the company said. "Capital allocation is expected to continue shifting toward Ethereum and infrastructure-related opportunities."

Bit Digital CEO Sam Tabar said the company has been "early" in identifying major industry shifts. 

"[We] believe we are early again at the convergence of AI and Ethereum," Tabar added. "Bit Digital sits at both layers of this thesis: providing the compute infrastructure through WhiteFiber and the settlement rails through our Ethereum treasury and staking platform."

WhiteFiber, an HPC subsidiary of Bit Digital AI, raised nearly $160 million in an initial public offering in August 2025. At the end of March, Bit Digital held approximately 27 million WhiteFiber shares and maintained a majority ownership stake.

Bit Digital's shares fell 3.7% in after-hours trading on Thursday after closing the regular session up 4.9%. The Nasdaq-listed stock has gained 39% over the past month, though it remains down 7% over the past six months.