Bit Digital Posts $146M Q1 Loss as Ethereum Treasury Tops 155,000 ETH

Bit Digital Expands ETH Treasury to $327M, Staking Income Declines 29%

Bit Digital is accelerating its transformation from a bitcoin miner into an ethereum and AI-focused infrastructure company, even as volatility in digital asset markets continued to pressure earnings during the first quarter.

The Nasdaq-listed firm reported a net loss of $146.7 million in its Q1 2026 financial results, improving from a $185.3 million loss in the previous quarter. The results were heavily influenced by non-cash mark-to-market adjustments tied to declines in crypto prices.

The company held approximately 155,444 ether at quarter-end, with a market value of roughly $327 million based on ether’s closing price of about $2,104 on March 31. Bit Digital said its average acquisition price across all ETH holdings stood at approximately $3,045 per token.

Total revenue fell 13.6% quarter over quarter to $27.9 million, primarily due to weaker cloud services revenue, lower staking income, and reduced digital asset mining activity.

Still, the company continued to emphasize its long-term ethereum strategy centered on treasury management and staking. Revenue generated from ETH staking totaled $2.3 million during the quarter, though that marked a 29% decline from the prior period as average ether prices weakened.

As part of its treasury repositioning, Bit Digital moved roughly 70,000 ETH into liquid staking through LsETH to maintain flexibility while continuing to earn yield. About 60,677 ETH remained natively staked as of April 30.

CEO Sam Tabar said the company views ethereum and AI infrastructure as interconnected parts of a broader digital financial system.

Ethereum and AI infrastructure are components of a single integrated platform aligned with the future of the digital financial system. The future financial system will increasingly revolve around automated, on-chain value transfer between AI agents and applications. Ethereum is particularly well-positioned to serve as the settlement layer for that activity.

The company’s infrastructure exposure comes through Whitefiber, its majority-owned AI and high-performance computing subsidiary. Bit Digital held approximately 27 million Whitefiber shares at quarter-end, representing an implied value of roughly $322 million based on the company’s Nasdaq closing price.

Cloud services revenue declined 13% sequentially to $16.8 million, while colocation revenue rose nearly 24% to $4.8 million, helped by a full-quarter contribution from the MTL-3 facility.

Bitcoin mining revenue, meanwhile, dropped 33% to $3.7 million as Bit Digital continued to scale back exposure to the sector. Management said bitcoin mining remains cash-flow positive but is no longer considered a core growth strategy.

Bit Digital’s evolving strategy reflects a broader shift among crypto firms seeking exposure to ethereum staking and AI infrastructure as institutional interest in tokenization, stablecoins, and blockchain-based settlement systems continues to grow.