Bit Digital has reported a third-quarter profit of $28.5 million while holding approximately 163,726 ETH worth $439.4 million at the end of September, as the company continues moving away from Bitcoin mining.
Summary
- Bit Digital reported 163,725.9 ETH and ETH-equivalent assets valued at $439.4 million on September 30.
- Third-quarter net income reached $28.5 million, reversing the company’s $107.2 million second-quarter net loss.
- Bit Digital sold 1,625 ETH during the quarter but made no additional Ethereum purchases.
- WhiteFiber colocation revenue increased 232% annually, while Bit Digital reduced its Bitcoin mining operations.
- CEO Sam Tabar said share repurchases remain under consideration but would require shareholder approval first.
According to its November 12 earnings release, the Nasdaq-listed company recorded $27.1 million in revenue, down 11% from $30.5 million a year earlier. However, its net income improved from a $107.2 million loss in the second quarter, helped by gains in the value of its digital assets.
Bit Digital, which trades under the ticker BTBT, reported gross profit of $15.2 million and a margin of 56.1%. Its latest results include the financial performance of WhiteFiber, the AI infrastructure company in which it holds a controlling stake.
Bit Digital reports $439.4M Ethereum treasury
As of September 30, Bit Digital held 163,725.9 ETH and ETH-equivalent assets, valued at approximately $439.4 million using Ethereum’s closing price of $2,684.
Of those holdings, 74,606.4 ETH were held directly, including coins staked through the company’s validator partner. Their reported fair value stood at $200.2 million.
The total treasury figure includes roughly 15,437 ETH and ETH-equivalents in an externally managed fund, along with liquid-staking positions measured on an ETH-converted basis.
During the quarter, Bit Digital moved 73,683 ETH into liquid staking and received 66,192 LsETH tokens. It pledged 19,000 LsETH as loan collateral, recording a $37.1 million digital asset collateral receivable.
The remaining 47,192 LsETH carried a book value of $98.3 million and served as a reserve against potential margin requirements.
Bit Digital recorded a $3.2 million non-cash impairment on LsETH. The company explained that its accounting treatment differs from directly held ETH and that the charge did not represent a realized trading loss.
The company sold 1,625 ETH for $3.4 million during the quarter, at an average price of $2,114.62. It made no ETH purchases.
Ethereum price falls below Bit Digital’s September valuation
Meanwhile, Ethereum price was trading near $2,050 on November 12, according to crypto.news market data.
Using that latest price, the reported 163,725.9 ETH-equivalent position would have a market value of approximately $336 million, around $103 million below its September 30 valuation.
The calculation reflects a change in the cryptocurrency’s price, not a newly reported loss or the company’s accounting value. The treasury includes liquid-staking tokens and externally managed assets whose values and treatment can differ.
Bit Digital had reported a $146.7 million loss in the first quarter while holding approximately 154,444 ETH at the end of March.
Its third-quarter profit included approximately $16.3 million from digital asset valuation changes and other specified items.
Bit Digital staking revenue rises as WhiteFiber expands
Native Ethereum staking generated 474 ETH during the third quarter, bringing total rewards earned through September to approximately 1,863 ETH.
Staking revenue reached $1 million, up 14% from the preceding quarter but down from $2.9 million a year earlier.
The company attributed the annual decline to moving ETH into liquid staking to support WhiteFiber financing. Higher Ethereum prices during the reporting period helped its quarterly staking revenue.
“Our third-quarter results reflect the continued shift toward Ethereum and AI infrastructure,” CEO Sam Tabar said.
He added that “native ETH staking revenue grew 14%” as the company returned to positive earnings.
WhiteFiber’s colocation revenue reached $5.6 million, up 232% year over year, supported by its MTL-3 facility and initial operations at the NC-1 campus.
Cloud services generated $18.1 million, while Bitcoin mining contributed $2 million, down from $7.4 million a year earlier.
Bit Digital previously arranged a $100 million loan facility to finance WhiteFiber’s infrastructure development.
Bit Digital weighs share buybacks as mining declines
As of September 30, Bit Digital owned 27,043,750 WhiteFiber shares, representing 59.7% of the company’s outstanding stock.
The holding carried an implied market value of approximately $487 million, based on WhiteFiber’s $18.01 closing share price.
Following the quarter, Bit Digital pledged another 45,000 LsETH to support WhiteFiber’s $70 million borrowing in October.
The company ended September with $143.5 million in cash and cash equivalents, including approximately $138.5 million held at WhiteFiber.
Tabar said management was considering whether repurchasing BTBT shares could benefit investors, although shareholder approval would be necessary before introducing such a program.
“The persistent discount to our net asset value makes repurchases an option that deserves serious consideration,” he said.
He cautioned that selling Ethereum to finance buybacks would reduce staking income and the company’s exposure to potential ETH price gains.
Bitcoin mining remains profitable at the gross-margin level, but Bit Digital said it does not expect to commit meaningful new growth or maintenance capital to the business.
