Ethereum News Today: Bit Digital's Ethereum Shift Boosts Revenue, Not Investor Confidence as Shares Drop

Bit Digital Inc. (BTBT) reported a 34% year-over-year revenue increase to $30.5 million in Q3 2025, driven by a strategic pivot toward Ethereum staking and the full consolidation of its AI infrastructure subsidiary, WhiteFiber. The company's Ethereum holdings surged to 153,547 ETH by October 31, valued at approximately $590.5 million, while staking revenue jumped 542% year-over-year to $2.9 million. Despite robust financial results, shares fell 6.35% in premarket trading, reflecting mixed investor sentiment about the company's long-term strategy.

The earnings report marked a stark departure from Bit Digital's earlier focus on Bitcoin mining. Crypto mining revenue declined 27% to $7.4 million year-over-year, attributed to reduced hash rates and increased network difficulty. CEO Sam Tabar emphasized the shift during the earnings call, stating, "Ethereum has no downtime. Wall Street is going to back a blockchain that has zero downtime." The company now plans to allocate capital entirely to Ethereum staking operations, aiming to generate yields exceeding 3%.

WhiteFiber, which contributes 70.7% of Bit Digital's equity holdings, added $18.0 million in cloud services revenue, up 48% year-over-year. This segment, combined with Ethereum staking, offset declines in Bitcoin mining and bolstered the company's adjusted EBITDA to $166.8 million. Bit Digital's balance sheet remains strong, with $179 million in cash and $620 million in total liquidity.

The strategic realignment has reshaped the company's digital asset portfolio. Ethereum holdings grew from 30,663 ETH on June 30 to 153,547 ETH by October 31, reflecting a 400% increase in just three months. This expansion was funded by a $150 million convertible notes offering, with 31,057 ETH purchased in October alone. Bitcoin mining output, meanwhile, dwindled to 64.9 BTC in Q3, down from 165.4 BTC in the prior year.

Analysts highlight the dual focus on Ethereum and AI infrastructure as a differentiator. Tabar said in a statement: "Bit Digital's strategy positions it at the intersection of two powerful secular trends: Ethereum's dominance in financial infrastructure and AI's infrastructure demands." The company's Ethereum staking operations now represent 9.5% of its total revenue, up from negligible levels in 2024.

While the stock's post-earnings decline raised concerns, the broader market context remains positive. Ethereum's price appreciation and the growing institutional adoption of staking services have created tailwinds for firms like Bit Digital. The company's $424 million in digital assets and $734.8 million valuation of its WhiteFiber stake further reinforce its financial resilience.

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