Bit Digital Shares Fall 9.29% as Q3 Revenue Declines 11% Despite Earnings Beat

Bit Digital Inc. (NASDAQ:BTBT) shares declined 9.29% in pre-market trading on Thursday after the company reported third-quarter revenue below analyst expectations, despite exceeding earnings forecasts.

For the quarter ended September 30, 2026, Bit Digital reported adjusted earnings per share of $0.08, compared with an analyst consensus estimate of a $0.05 loss per share.

Revenue declined 11% year over year to $27.1 million from $30.5 million in the third quarter of 2025, falling short of the market estimate of $32.23 million.

Colocation Revenue Increases 232% as Mining Operations Decline

Colocation revenue increased 232% year over year to $5.6 million, generating a gross margin of 57%. The increase reflected contributions from the MTL-3 facility, which became fully operational in November 2025, and initial revenue from the first 20 megawatts of contracted capacity at the NC-1 site.

Cloud services revenue reached $18.1 million, representing a slight year-over-year increase, with a gross margin of 56%.

Meanwhile, digital asset mining revenue declined to $2 million from $7.4 million a year earlier as the company continued reducing its mining operations.

Ethereum (ETH) staking revenue decreased to $1 million from $2.9 million, primarily reflecting the repositioning of ETH holdings into liquid staking arrangements to support WhiteFiber financing during the second quarter.

As of September 30, 2026, Bit Digital held approximately 163,725.9 ETH, with a reported market value of $439.4 million.

“Our third-quarter results reflect the continued shift toward Ethereum and AI infrastructure,” said Chief Executive Sam Tabar.

“Colocation revenue increased 19% sequentially, supported by NC-1’s initial contribution, while native ETH staking revenue grew 14%,” he added.

Bit Digital Reports $28.5 Million Net Income and $143.5 Million Cash Balance

Net income attributable to shareholders reached $28.5 million, equivalent to $0.08 per diluted share, compared with a net loss of $107.2 million in the second quarter of 2026.

Cash and cash equivalents totalled $143.5 million at September 30, 2026.

The company also maintained its 59.7% ownership interest in WhiteFiber Inc. (NASDAQ:WYFI), valued at approximately $487 million based on WhiteFiber’s closing share price of $18.01 on September 30.

Bit Digital continues to transition its operations toward Ethereum-related activities and artificial intelligence infrastructure as it reduces its exposure to traditional digital asset mining.

Bit Digital stock price