Bit Digital (BTBT) shares fell in after-hours trading after the company reported a 13.6% drop in first-quarter revenue to $27.9 million, driven largely by Ethereum-related losses and lower staking income. The stock closed up 4.93% at $2.13 on Thursday but slipped to $2.02 after the earnings release, down 5.16% overnight.
The revenue decline reflected lower cloud services revenue ($16.8 million, -13.1%), weaker ETH staking income ($2.3 million, -29.4%), and a drop in digital asset mining revenue ($3.7 million, -32.9%). Colocation services provided a partial offset, rising 23.9% to $4.8 million after a full-quarter contribution from MTL-3. Gross profit reached $15.4 million, with ETH staking margins holding at 94.7%.
Bit Digital’s large Ethereum treasury – 155,444.4 ETH valued at $327 million as of March 31 – exposed the company to market turbulence. The average acquisition price of its ETH holdings was $3,045, while the quarter-end price had fallen to $2,104. As a result, non-cash mark-to-market adjustments contributed to a net loss of $146.7 million, compared to a $185.3 million loss in the prior quarter.
During the quarter, the company moved approximately 70,000 ETH into liquid staking tokens (LsETH) to maintain treasury flexibility. By April 30, about 60,677 ETH remained natively staked. CEO Sam Tabar emphasized that the firm is “early at the convergence of AI and Ethereum,” leveraging both its HPC subsidiary WhiteFiber (in which it holds a majority stake valued at $322.1 million) and its Ethereum treasury and staking platform.
Cash reserves fell to $79.5 million, and convertible notes climbed to $334.2 million following WhiteFiber’s issuance. Adjusted EBITDA was negative $9.4 million. The company reiterated that bitcoin mining is “no longer a strategic growth priority,” with capital allocation shifting further toward Ethereum and infrastructure.
