Bit Digital Leans Into Ethereum as Quarterly Revenue Surges and Strategy Shifts

Bit Digital has entered a new phase of reinvention, and its latest quarterly earnings confirm just how aggressively the company is steering toward Ethereum. For the third quarter of 2025, the firm reported revenue of $30.5 million, a 33% increase year over year, driven primarily by the momentum of its WhiteFiber unit and a rapidly expanding ETH-based operation. The results mark a sharp pivot away from the company’s legacy Bitcoin mining model and signal a broader transformation toward a full Ethereum treasury structure.

The numbers illustrate the shift clearly. Bitcoin mining revenue fell to $7.4 million from $10.1 million last year as the company intentionally wound down hash power and as network difficulty continued climbing. In contrast, cloud services produced $18 million, up from $12.2 million, while the company’s new colocation business added $1.7 million after launching late in 2024. But the standout figure was ETH staking revenue, which hit $2.9 million—up from just $0.4 million the year before—powered by higher staking yields and stronger ETH prices.

A significant portion of this growth comes from the first full reporting period of WhiteFiber, the AI-infrastructure firm that completed its IPO in August and is now fully consolidated into Bit Digital’s results. The company owns 70.7% of WhiteFiber, a stake valued at $734.8 million at the end of September. That valuation helped propel net income to $146.7 million, a stark reversal from the $38.8 million loss posted last year. Adjusted EBITDA also surged to $166.8 million, buoyed by $146 million in gains from crypto holdings.

True to its stated roadmap, Bit Digital is moving rapidly to accumulate Ethereum. Its holdings climbed from 30,663 ETH at the end of June to 122,187 ETH at the end of September, followed by another jump to 153,547 ETH by the end of October. These purchases were partly funded through a $150 million convertible note sale, giving the company fresh capital to accelerate its strategy. Bit Digital earned 644.3 ETH from native staking and 52.9 ETH from liquid staking during the quarter and had nearly 100,000 ETH staked by September 30. By October 31, that number rose to 132,480 ETH.

The Bitcoin mining division continues to shrink with predictable speed. Only 64.9 BTC were mined in Q3, compared with 165.4 BTC a year earlier. The company reported an active hash rate of 1.9 EH/s and a 32% gross margin but reiterated that it expects minimal future investment in this segment. Remaining proceeds will flow directly into Ethereum accumulation.

CEO Sam Tabar framed the company’s strategy as a bet on converging megatrends, arguing that Ethereum and artificial intelligence are shaping a new economic landscape. Bit Digital’s growing ETH treasury, combined with its stake in an AI infrastructure player, reflects a dual-track approach that he believes positions the company for long-term value creation. Volatility, he said, remains an expected feature of the industry, but market pullbacks are opportunities rather than setbacks.

Bit Digital’s transformation is no longer theoretical—it is a capital-backed restructuring that places Ethereum at the core of its future. The company now operates less like a traditional miner and more like an emerging hybrid of digital-asset manager and AI-aligned infrastructure investor.