Bit Digital Stock Slides As Crypto Markets Unravel

Bit Digital, Inc. (NASDAQ:BTBT) posted third-quarter 2025 results that exceeded revenue expectations, though shares slipped following the release. The company continued its pivot toward Ethereum-focused operations, supported by strong gains in digital assets and growing cloud and staking revenue.

Bit Digital reported Q3 revenue of $30.5 million, a 33% increase from $22.8 million last year and slightly above the $30.3 million analyst estimate. The company recorded net income of $146.7 million, or GAAP earnings per share of 0.47 cents, a sharp reversal from a $38.8 million loss in the prior-year period.

The adjusted earnings per share were a loss of 5 cents, which missed the consensus of a 1-cent loss.

The swing to profitability was largely driven by $146.0 million in digital asset gains, which helped lift adjusted EBITDA to $166.8 million from a loss of $19.7 million in the prior year.

Business Segment Performance

Digital asset mining revenue declined 27% to $7.4 million, reflecting increased Bitcoin network difficulty and a decrease in the hash rate as the company reduces its mining footprint.

Bit Digital mined 64.9 BTC, down from 165.4 BTC last year, though the segment still generated a 32% gross margin with an active hash rate of 1.9 EH/s.

Cloud services delivered strong growth, with revenue rising 48% to $18.0 million, while the company's new colocation services contributed $1.7 million following their late-2024 launch. Ethereum staking revenue increased substantially to $2.9 million, up from $0.4 million the previous year, reflecting the company’s expanding ETH holdings and increased staking activity.

Also Read: Forget MSTR, These 3 Bitcoin-Linked Stocks Are Flashing Valuation Red Flags

WhiteFiber Consolidation

The quarter marked the first complete consolidation of WhiteFiber Inc. (NASDAQ:WYFI), which completed its IPO on August 8, 2025. Bit Digital held 27,043,750 shares, representing approximately 70.7% ownership, with a value of roughly $734.8 million as of September 30. The addition of WhiteFiber strengthens Bit Digital's growing cloud and AI-adjacent infrastructure strategy.

WhiteFiber reported third-quarter 2025 revenue of $20.18 million, missing the $22.03 million estimate, and posted a net loss of 47 cents per share, wider than the expected 7-cent loss. Revenue continued to grow year over year, led by cloud and colocation services, with gross margins near 60%. However, higher operating and public company costs pressured results.

Balance Sheet and Ethereum Strategy

The company ended the quarter with $179.1 million in cash, up from $95.2 million at year-end, while the value of its digital assets rose to $423.7 million from $161.4 million. Bit Digital accelerated its Ethereum accumulation, holding 122,187 ETH as of September 30 and 153,547 ETH by October 31.

In October, Bit Digital purchased 31,057 ETH using proceeds from its $150 million convertible notes offering, priced at a conversion rate of $4.16. Staking activity continued to scale, with the company earning 644.3 ETH from native staking and 52.9 ETH from liquid staking during the quarter.

Roughly 99,936 ETH were actively staked as of September 30 at an annualized yield of 3.05%, increasing to 132,480 ETH by the end of October.

"This quarter further solidified Bit Digital's position at the intersection of what we believe are the two most powerful secular trends of our time: Ethereum and artificial intelligence," said CEO Sam Tabar. He emphasized the company's goal of building one of the largest and most efficient ETH treasuries among public firms, citing expanding institutional adoption and the maturation of the staking economy.

Market Backdrop

The results came amid heightened cryptocurrency volatility.

Bitcoin briefly dropped below $96,000 as more than $1 billion in leveraged positions were liquidated across major tokens, including Ethereum, XRP, and Dogecoin. Analysts attributed the sharp sell-off to cascading liquidations and heavy leverage across futures markets. While unrelated to Bit Digital's fundamentals, the market downturn contributed to broader risk-off sentiment in digital asset equities.

Price Action: BTBT shares are trading 6.35% lower at $2.36, and WYFI is down 15.5% at $16.80 premarket as of Friday’s last check.

Read Next:

Eric Trump Praises Bitcoin — But ABTC Faces Brutal Drop To $3.50

Image: Shutterstock