Bit Digital stock falls 9% in pre-market after Q3 revenue miss

Bit Digital shares slid approximately 9% in pre-market trading on Thursday after the company’s third-quarter revenue came in well short of what analysts expected.

The Nasdaq-listed firm (BTBT) reported revenue of $27.1 million. Consensus estimates had pointed to around $32 million.

The shortfall topped $5 million and left revenue 16% under the Street’s number.

A profit that couldn’t save the morning

Bit Digital actually made money this quarter. Net income attributable to shareholders reached $28.5 million, or $0.08 per diluted share.

The company also beat on adjusted earnings per share.

Gains on digital assets contributed approximately $16.3 million to net income, more than half of the total.

Revenue tells a different story. The $27.1 million figure marked an 11% decline from $30.5 million in the same quarter a year earlier.

The pieces inside the miss

Not every segment went backward. Colocation revenue jumped 232% to $5.6 million, a sharp gain for the newer part of the operation.

Cloud services revenue held steady at $18.1 million. That remains the largest piece of the top line by a wide margin.

Bit Digital ended September with $143.5 million in cash. Most of that sits at its subsidiary rather than at the parent company level.

From Bitcoin miner to Ethereum treasury

Bit Digital has spent the past stretch reinventing itself. It now positions itself as an Ethereum treasury company with a side of AI infrastructure.

As of September 30, the company held roughly 163,726 ETH. That stash was valued at about $439 million.

The strategy centers on accumulating ETH and staking it.

The AI side runs through WhiteFiber (WYFI), a separately listed high-performance computing provider. Bit Digital owns approximately 59.7% of it, a stake valued at around $487 million.

WhiteFiber supplies the cloud and colocation services that make up most of Bit Digital’s current revenue.

What this means for investors

Bit Digital’s net income of $28.5 million looks healthy. But with roughly $16.3 million of it tied to digital asset gains, a weaker ETH market could flip that picture quickly.

The ETH holdings and the WhiteFiber stake are each worth hundreds of millions of dollars on their own.

The 232% jump in colocation revenue is the clearest sign the new model is gaining traction.

Revenue still fell 11%, and the miss against estimates was sizable.