Bit Digital swings to $28.5 million Q3 profit as revenue falls 11%

Bit Digital is back in the black. The Nasdaq-listed company reported net income of $28.5 million for the third quarter of 2026, or $0.08 per share.

That is a sharp reversal from the prior quarter, when it posted a net loss of $107.2 million. Investors, however, looked past the profit and fixated on the top line.

Revenue for the quarter came in at $27.1 million, down 11% from $30.5 million in the same period of 2025. The figure fell short of analyst expectations, even as earnings per share beat forecasts.

Shares of Bit Digital (NASDAQ: BTBT) dropped nearly 9% in pre-market trading after the release.

Where the money came from, and where it didn’t

The revenue decline traces largely to one place: Bitcoin mining. Bit Digital is winding down those operations, and digital asset mining revenue shrank to $2.0 million for the quarter.

The profit itself had help from outside day-to-day operations. Results included approximately $16.3 million tied to digital asset gains and impairments, which sit among various non-operating items.

The brighter spot was WhiteFiber, Inc., the AI and cloud infrastructure subsidiary in which Bit Digital holds a 59.7% stake. Colocation revenue at WhiteFiber jumped 232% year over year to $5.6 million.

WhiteFiber’s cloud services revenue held steady over the period.

The Ethereum side of the ledger

Bit Digital has been steering resources toward Ethereum, both as a treasury holding and as a source of staking income. The company holds approximately 163,726 ETH, valued at roughly $439 million.

ETH staking revenue for the quarter came in at $1.0 million. That is down from $2.9 million a year earlier, but up 14% from the previous quarter.

On liquidity, Bit Digital reported cash reserves of $143.5 million as of September 30, 2026. Of that total, $138.5 million sat with WhiteFiber.

Background: a company changing lanes

Bit Digital built its name as a Bitcoin miner. Its current strategy points somewhere else entirely: Ethereum holdings and staking on one track, AI and cloud infrastructure through WhiteFiber on the other.

The jump from a $107.2 million loss in Q2 to a $28.5 million profit in Q3 shows how much those swings can dominate the bottom line.

What this means for investors

The pre-market sell-off suggests investors care more about operating revenue than accounting gains right now. Colocation growth of 232% is a strong signal, and $5.6 million from that segment already exceeds the $2.0 million that mining brought in this quarter. Total revenue still went down, though.

The staking business is another variable to track. Revenue there is well below last year’s level, so the sequential improvement of 14% will need to hold for that segment to add meaningfully to the top line.

Because Bit Digital owns 59.7% of WhiteFiber, and because $138.5 million of the $143.5 million in cash sits at WhiteFiber, investors in BTBT are effectively holding a mix of an ETH treasury and a majority stake in an AI infrastructure company.

With roughly $439 million in ETH on the books and a meaningful portion of this quarter’s profit tied to digital asset gains and impairments, future results could look very different depending on where the token trades.

For now, Bit Digital has delivered a profitable quarter and a revenue line still in decline. The market, at least in early trading, chose to focus on the second part.