Bit Digital posts $146.7M Q1 loss, pivots to ETH and AI

Bit Digital reported a $146.7 million net loss for the first quarter of 2026, narrowing from a $185.3 million loss in the prior quarter. The Nasdaq-listed company attributed the change largely to non-cash mark-to-market losses tied to declines in ether and other crypto prices. The quarter ended March 31.

At March 31 Bit Digital held about 155,444 ether. Using ether’s closing price of roughly $2,104 on that date, the holdings were valued near $327 million. The company reported an average acquisition cost of about $3,045 per token across its ETH position.

Total revenue fell 13.6% sequentially to $27.9 million. Cloud services revenue declined 13% to $16.8 million. Colocation revenue increased nearly 24% to $4.8 million, reflecting a full-quarter contribution from the MTL-3 facility. Revenue from bitcoin mining dropped 33% to $3.7 million as Bit Digital reduced its exposure to that business. Company management reported mining remained cash-flow positive but was no longer treated as a core growth area.

Revenue from ethereum staking totaled $2.3 million, a 29% decline from the prior period as lower average ether prices reduced staking yield. As part of a treasury repositioning, Bit Digital moved roughly 70,000 ETH into liquid staking via LsETH to retain flexibility while earning yield. As of April 30, about 60,677 ETH remained natively staked.

Bit Digital reported approximately 27 million shares of Whitefiber, its majority-owned AI and high-performance computing subsidiary, at quarter-end. Based on Whitefiber’s Nasdaq closing price on March 31, the stake implied an approximate value of $322 million.

The company said it is focusing on treasury management, staking, and AI and high-performance compute services while continuing to wind down its bitcoin mining footprint. CEO Sam Tabar commented on the company’s strategy: “Ethereum and AI infrastructure are components of a single integrated platform aligned with the future of the digital financial system.”

Bit Digital cited institutional interest in tokenization, stablecoins and blockchain-based settlement systems as context for its strategy and highlighted its mix of digital asset holdings, staking revenue and the Whitefiber stake as elements of its plan for scaling in those markets.