Bit Digital 2025 Q3 Earnings Surges to $146.7M Net Income 478% YoY

Bit Digital (BTBT) reported Q3 2025 earnings that significantly outperformed expectations, with revenue of $30.5M beating FactSet estimates by $0.19M and net income turning sharply positive. The company outlined a strategic shift toward Ethereum staking and disciplined capital allocation, while management provided updated guidance for sustained growth in staking operations.

Revenue

Digital asset mining revenue stood at $7.42 million, while cloud services contributed the largest portion at $18.03 million. Colocation services added $1.69 million, and ETH staking revenue surged to $2.87 million—a 542% year-over-year increase. Additional revenue streams, including $454,588 from other segments, pushed total revenues to $30.46 million, reflecting a 32.2% year-over-year increase.

Earnings/Net Income

Bit Digital achieved a remarkable turnaround, reporting net income of $146.72 million in Q3 2025 compared to a $38.8 million loss in the same period last year—a 478.2% positive swing. Earnings per share (EPS) jumped to $0.48 from a $0.26 loss, marking a 284.6% improvement. The results were driven by higher staking income, improved margins, and a $168 million gain on digital assets from Ethereum appreciation.

Post-Earnings Price Action Review

The stock price of Bit Digital edged up 1.69% during the latest trading day but faced significant volatility, plummeting 23.25% during the most recent full trading week and 40.64% month-to-date. Despite the earnings beat, market participants appeared cautious, with short-term declines outweighing the positive financial results.

CEO Commentary

CEO Samir Tabar emphasized the company’s transition to an Ethereum-centric model, highlighting a 5-fold increase in ETH holdings (122,000 to 153,000) and staking revenue growth to $2.9M. He underscored disciplined capital allocation, including a $150M convertible notes offering to acquire ETH at “compelling long-term entry points.” Mining operations, producing 65 Bitcoin (down from 83 in Q2), are being phased out as a “noncore contributor.” Tabar expressed confidence in Ethereum’s role in decentralized finance and AI infrastructure, stating, “Ethereum is winning where it matters most.”

Guidance

Management outlined expectations for staking revenue to grow as ETH holdings expand, with 132,000 ETH actively staked (up from 100,000 in Q3). Mining hash rate is projected to decline further by mid-2026, with a focus on maintaining leverage below 20% of ETH holdings. Strategic priorities include compounding value via staking, retaining WhiteFiber shares post-2026 lockup, and exploring additional yield generation strategies beyond native staking.

Additional News

Bit Digital’s $150M convertible notes offering, completed after Q3, was used to purchase 31,057 ETH, boosting holdings to 153,547 ETH valued at $590.5 million. CEO Sam Tabar emphasized Ethereum’s dominance in decentralized finance, citing its security, regulatory clarity, and developer ecosystem. The company also announced plans to reduce Bitcoin mining operations further, aligning with its Ethereum-focused strategy. Additionally, management reiterated confidence in WhiteFiber’s AI infrastructure potential, despite challenges in lease closures impacting revenue ramp-up.

Key Financial Highlights

• Revenue: $30.5M (+32.2% YoY)

• Net Income: $146.7M (478.2% YoY)

• EPS: $0.48 (vs. -$0.26 YoY)

• ETH Holdings: 153,000 (up 5x since June)

Strategic Priorities

• Ethereum Staking: 132,000 ETH actively staked (85% of holdings)

• Capital Allocation: $150M convertible notes for ETH accumulation

• Mining Phase-Out: Bitcoin production cut to 65 units (Q3) from 83 (Q2)

Market Reaction

• Stock Price: -40.64% month-to-date (as of Nov 14, 2025)

• Liquidity: $620M total liquidity, no debt outstanding