Bit Digital Revenue Falls 11% to $27.1 Million in Third Quarter
Key Facts
Bit Digital reported third-quarter 2026 revenue of $27.1 million, down 11% from $30.5 million in the same period last year. The company said gross profit was $15.2 million, with a gross margin of 56.1%. The most notable shifts among the company’s activities were a decline in digital mining revenue and sequential growth in hosting revenue. The company announced on October 28 that it would release results for the quarter ended September 30 before the market opened on November 12. It also scheduled a management call to discuss the results for 8:30 a.m. Eastern Time on the day of the announcement.
Digital mining revenue fell to $2.0 million in the third quarter, compared with $7.4 million in the same quarter of 2025. The company produced 28.4 bitcoin during the quarter, versus 64.9 bitcoin a year earlier. Bit Digital said the figures were consistent with its scaling back of mining activity. This follows mining revenue of $27.3 million in 2025, down 53% from $58.6 million in 2024. In its 2025 annual results, the company linked the decline in its effective hash rate to the reduction in this activity and said it did not expect to allocate significant capital expenditure to growth or maintenance going forward.
By contrast, the company said hosting revenue rose 19% sequentially, supported by the initial contribution from the NC-1 facility. Native ETH staking revenue rose 14% from the previous quarter. ETH staking revenue was about $1.0 million in the third quarter, compared with $2.9 million in the same period of 2025. The company attributed the quarterly increase to a higher Ethereum price. Chief Executive Officer Sam Tabar said, "Hosting revenue rose 19% sequentially, supported by the initial contribution from the NC-1 facility, while native ETH staking revenue grew 14%."
The company reported revenue of $32.1 million in the second quarter of 2026, compared with $25.7 million in the second quarter of 2025. That period included digital mining revenue of $2.4 million from mining 32.3 bitcoin, versus 48.1 bitcoin in the first quarter of 2026. Bit Digital said at the time that cloud services revenue grew, while digital mining revenue declined compared with the same period a year earlier. For fiscal 2025, cloud services revenue was $68.8 million, up 50% from the previous year. Hosting revenue also reached $8.9 million in 2025, compared with $1.4 million in 2024, and the company began its strategic shift toward an Ethereum-focused treasury in June 2025.
The company’s contractual obligations totaled $154.1 million on September 30, 2026, compared with $7.7 million on December 31, 2025. Bit Digital estimated remaining performance obligations at about $729.0 million at quarter-end. It said about $13.5 million of that amount is expected to be recognized during the remainder of 2026. On capital allocation, management said share repurchases were an option worth considering because the stock continued to trade at a discount to net asset value. It added that "the benefit to shareholders depends on the price we pay and how we finance the purchases."
BTBT shares closed at $0.7948 on November 11, according to EL7 data. The following day, the company reported third-quarter results on the schedule it had previously set. According to management, share repurchases remain an option under consideration, not a program announced for implementation. It said launching any program would require shareholder approval and a financing plan that takes liquidity into account. It also noted the need to account for the effect of selling ETH on staking income and exposure to the possibility of its price rising.