Bit Digital Plunges 9.39% Amid Crypto Volatility, Financial Stability Fears

The share price fell to its lowest level this month, with an intraday decline of 4.48%. Bit Digital’s stock has lost 9.39% over three consecutive trading days, marking its weakest performance since June 2025. The selloff reflects broader crypto market volatility and persistent concerns about the company’s financial stability.

Bit Digital’s recent struggles stem from a combination of external and internal factors. The stock’s decline mirrors Bitcoin’s price swings, with a sharp drop observed in late December as crypto values retreated. The company’s strategic shift to Ethereum staking—highlighted by CEO Sam Tabar as a move toward “zero downtime” and Wall Street appeal—has yet to offset investor skepticism. Despite a Q3 2025 net income of $146.7 million and adjusted EBITDA of $166.8 million, shares fell 6.35% pre-market, underscoring doubts about sustaining profitability amid sector-wide turbulence. Meanwhile, speculative trading activity has amplified short-term volatility, with a 3.48% drop recorded on December 30.

The company faces structural challenges despite $620 million in cash and Ethereum holdings. A free cash flow deficit of -$257 million and a cash-to-debt ratio raising risk management concerns have dented investor confidence. While plans to retain its White Fiber stake into 2026 signal a diversification push into AI infrastructure, execution risks remain. Analysts emphasize the need for debt restructuring and improved operational efficiency to align with growth ambitions, including Ethereum staking yields above 3%. The path forward hinges on balancing speculative trading dynamics with concrete financial reforms to stabilize its valuation.