Bit Digital revenue falls 11% to $27.1 million in third quarter
Key Facts
Bit Digital reported third-quarter 2026 results on November 12, posting revenue of $27.1 million, down 11% from $30.5 million in the same period a year earlier. The company said the results include WhiteFiber’s consolidated financial performance. By contrast, revenue for the first nine months rose 7% year over year to $87.1 million. Net income attributable to the company’s shareholders was $28.5 million, or $0.08 per diluted share. Investing.com reported that earnings per share exceeded an estimate of a $0.05 loss, while revenue fell short of the consensus estimate of $32.23 million.
Revenue came from a mix that is changing as the company moves away from mining. Cloud services revenue was $18.1 million, slightly higher year over year, while hosting revenue reached $5.6 million, up 232% from the year-earlier quarter and 19% from the second quarter of 2026. The company attributed hosting growth to the full operation of the MTL-3 site in November 2025 and the start of revenue from the first 20 megawatts of contracted capacity at the NC-1 facility. The CEO said the quarter’s results reflect “the ongoing shift toward Ethereum and AI infrastructure.” He added that NC-1’s initial contribution supported sequential hosting growth.
By contrast, digital asset mining revenue fell to $2.0 million, with 28.4 Bitcoin mined, compared with revenue of $7.4 million and production of 64.9 Bitcoin in the third quarter of 2025. For the first nine months, mining revenue declined 63% year over year. The company said the results are consistent with its continued reduction of the business and that it does not expect to allocate significant growth or maintenance capital expenditure to the segment going forward. Ethereum staking revenue also fell to $1 million from $2.9 million in the year-earlier period. The company attributed the decline to redeploying ETH into liquid staking to secure financing for WhiteFiber, while the CEO said native ETH staking revenue rose 14% sequentially.
Profitability figures show a difference between the company’s reported income and operating revenue performance. Gross profit was $15.2 million, with a gross margin of 56.1% for the quarter. But the company said net income included realized and unrealized gains on digital assets and intangible digital assets, along with impairment and non-operating items, which together contributed about $16.3 million in quarterly gains. It also said higher digital asset values helped it return to positive GAAP earnings. The company recorded an $84 million gain on digital assets during the quarter, attributing it primarily to higher Bitcoin and ETH prices through September 30.
On liquidity, cash and cash equivalents totaled $143.5 million on September 30, 2026, compared with $83.6 million on June 30. About $138.5 million of the balance was held at WhiteFiber. The company also recorded net cash from operating activities of $163.2 million during the nine months ended September 30, after using $204.9 million in cash in the same period of 2025. These figures show a higher cash position at quarter-end alongside the shift in the business mix. The company said it views its stake in WhiteFiber as a long-term strategic asset and does not intend to sell its shares in it during 2026.
The company had about $729 million in remaining performance obligations at quarter-end. It expects to recognize about $13.5 million of that amount during the rest of 2026, $235.1 million in 2027 and $206.9 million in 2028. On capital allocation, the CEO said the stock’s continued trading at a discount to net asset value makes buybacks “an option worth serious consideration,” but noted that any program would require shareholder approval and an appropriate financing plan. The company had scheduled a call to discuss the results for November 12, 2026, at 8:30 a.m. Eastern Time. Before the results announcement, BTBT shares closed at $0.7948 in the November 11 session; Investing.com reported a 5.64% drop in premarket trading on November 12 to $0.75.