Ethereum News Today: Bit Digital's Earnings Surge Fails to Satisfy Investors Awaiting AI Clarity

Bit Digital Inc. (NASDAQ:BTBT) reported a 33% year-over-year revenue increase to $30.5 million in Q3 2025, driven by Ethereum (ETH-USD) staking yields and a strategic pivot toward high-performance computing (HPC). The company's adjusted EBITDA surged to $166.8 million, fueled largely by a $168 million gain on digital-asset appreciation. Despite the earnings beat, market reaction has been muted, with investors awaiting clarity on a concrete AI hosting contract for its spun-off unit, WhiteFiber.

The firm's ETH treasury strategy, which saw it convert Bitcoin assets to Ethereum earlier this year, initially boosted investor interest but has since stalled as ETH prices retreated to around $3,000, threatening key support levels. Meanwhile, Bit Digital's Bitcoin mining operations have scaled back, with hash rate dropping to 1.9 EH/s and only 65 BTC mined in the quarter. The company plans to reduce mining capacity further to 1.2 EH/s by next year.

The broader crypto sector is shifting focus to AI infrastructure. Citizens analyst Greg Miller upgraded several miners-turned-AI providers, including WhiteFiber, to "Market Outperform," citing robust demand in data centers and improving pricing trends. "Data center returns continue to outpace supply growth, creating value for companies that can execute in this space," Miller wrote. WhiteFiber's stock rose 1.1% in premarket trading, reflecting renewed optimism about its AI ambitions.

Ethereum's institutional appeal remains intact despite short-term volatility. Lido's staked ETH surpassed 8.95 million, and services like Coinbase Custody and Bitwise report steady inflows. However, ETH futures open interest has declined by 7% week-on-week to $6.7 billion, signaling a leverage reset. Institutional confidence is bolstered by Ethereum's role in tokenizing real-world assets, with RWA value on the network exceeding $7.4 billion.

GeekStake's recent report highlights how AI-driven staking tools can stabilize earnings during market downturns. The platform, which manages $130 million in staked ETH, emphasized automated systems that adjust to volatility, maintaining consistency during turbulent cycles. This aligns with Bit Digital's focus on Ethereum staking, which generated $2.9 million in Q3 revenue.

While Ethereum's Dencun upgrade in early 2026 is seen as a long-term catalyst, near-term headwinds include liquidity tightening and Bitcoin's dominance rising to 53.2%. For Bit Digital, the path forward hinges on securing AI contracts for WhiteFiber and executing its ETH treasury strategy amid a cautious market.