Bit Digital Posts $28.5 Million in Net Income Despite 11% Revenue Decline
Key Facts
Bit Digital reported on November 12, 2026, third-quarter net income attributable to shareholders of $28.5 million, or $0.08 per diluted share, following a net loss of $107.2 million, or $0.31 per share, in the second quarter. The results showed a contrast between a return to profitability and falling revenue: the company recorded $27.1 million, down 11% from $30.5 million in the same quarter of 2025. Revenue also came in below analysts’ estimate of $32.23 million, according to Investing.com. Adjusted earnings per share, meanwhile, were $0.08, exceeding the average forecast for a loss of $0.05 per share by $0.13. The company was scheduled to hold a call to discuss the results on the day of the announcement at 8:30 a.m. Eastern Time.
The company attributed part of the quarter’s gain to a combination of items related to digital assets and intangible assets, along with impairment and non-operating items. In its statement, it said these items collectively contributed about $16.3 million to the quarter’s gain. The figure combines those items and does not represent asset valuation gains alone. This puts net income in the context of a mix of business results and non-operating items, while total revenue remained below its level a year earlier. Reported profitability therefore coincided with weaker revenue, despite adjusted earnings per share exceeding analysts’ expectations.
Co-location hosting stood out among revenue sources, with revenue up 232% year over year to $5.6 million and a gross margin of 57%. Investing.com attributed the increase to the full operation of the MTL-3 site and the start of revenue generation from the first 20 megawatts contracted at the NC-1 facility. Cloud services revenue also reached $18.1 million, with a gross margin of 56% and a slight year-over-year increase. These figures point to the expansion of infrastructure and computing activities as mining revenue declines. CEO Sam Tabar said co-location hosting revenue rose 19% sequentially, supported by the initial contribution from the NC-1 facility.
By contrast, digital asset mining revenue fell to $2.0 million in the third quarter, compared with $7.4 million in the same period a year earlier, as the company continued to scale back the activity. Bit Digital said mining still generates a positive gross margin, but is no longer a strategic growth priority. It added that it does not expect to allocate significant growth or maintenance capital to the activity in the future. This strategy comes as the company reported growth in co-location hosting and cloud services revenue, two activities tied to computing infrastructure. The year-over-year comparison shows mining revenue declining alongside a larger role for other activities in the business mix.
In its digital asset business, the company said native ETH staking revenue grew 14% during the quarter, according to comments by Tabar reported by Investing.com. Bit Digital held about 163,725.9 ETH on September 30, 2026, with a market value of $439.4 million. This holding provides context for the company’s shift toward Ethereum alongside its infrastructure expansion, while the quarter’s results were also affected by digital and intangible asset items. These figures are separate from reported operating revenue, which included cloud services, co-location hosting and mining. Growth in staking revenue and the decline in mining reflect two different paths within the company’s reshaping of its activities.
The stock reacted to the results in premarket trading, falling 9.29% on November 12, according to Investing.com, which said weak revenue overshadowed the earnings-per-share beat. The stock had closed at $0.7948 on November 11, compared with a close of $0.7307 in the previous session, according to EL7 data. The decline came ahead of the market open on the results announcement day, following a day on which the closing price rose above its previous level. Operating figures remain mixed, with growth in co-location hosting, relatively steady cloud services and declining mining. The company was scheduled to discuss its quarterly results with investors on a call at 8:30 a.m. Eastern Time on November 12.