Bit Digital Returns to Profit as Colocation Rises
Third-quarter revenue was $27.1 million, down 11% from a year earlier, as net income reached $28.5 million, or $0.08 a share.
Bit Digital, Inc. (BTBT), a Strategic Asset Company focused on Ethereum strategies and AI/HPC infrastructure, reported net income attributable to shareholders of $28.5 million, or $0.08 a diluted share, for the third quarter of 2026, reversing a $107.2 million loss, or $0.31 a share, in the second quarter.
The company said results included realized and unrealized gains on digital assets and digital intangible assets, impairment on digital intangible assets, and non-operating items including induced conversion expense, which together accounted for approximately $16.3 million of the third-quarter gain and $83.5 million of the second-quarter loss.
Total revenue was $27.1 million, an 11% decline from $30.5 million in the third quarter of 2025. Sequential revenue fell from $32.1 million in the second quarter, reversing that quarter’s 15% increase. Gross profit was $15.2 million, a 56.1% gross margin.
Colocation was the operating inflection. Revenue from colocation services was $5.6 million, up 232% from the third quarter of 2025 and 19% sequentially from the second quarter, at a gross margin of approximately 57%. The company said the increase was primarily due to the MTL-3 site becoming fully operational in November 2025 and the beginning of revenue generation from the first 20 MW of contracted capacity at the NC-1 facility. NC-1 had not contributed in the second quarter.
Cloud services revenue was $18.1 million, up slightly year-over-year at a gross margin of approximately 56%, after $23.8 million in the second quarter. ETH staking revenue was $1.0 million, compared with $2.9 million in the year-ago quarter after the company repositioned ETH into liquid staking in the second quarter to collateralize the WhiteFiber financing. Sequentially, staking revenue rose 14% from $0.9 million, which the company said was primarily driven by an increase in the price of Ethereum.
Digital asset mining revenue was $2.0 million on 28.4 bitcoin mined, versus $7.4 million on 64.9 bitcoin in the third quarter of 2025. The company said the quarterly and nine-month results were consistent with the continued winddown of the business, which generated a gross margin of approximately 27%. Mining remains gross margin positive but is no longer a strategic growth priority, and the company said it does not expect to allocate meaningful growth or maintenance capital to the segment going forward.
Results included the consolidated performance of WhiteFiber Inc. (WYFI). As of September 30, 2026, Bit Digital held 27,043,750 WhiteFiber shares, or 59.7%, with an implied value of approximately $487 million based on a Nasdaq closing price of $18.01. The company said it does not intend to sell WhiteFiber shares in 2026.
Cash and cash equivalents totaled approximately $143.5 million as of September 30, 2026, compared with $83.6 million as of June 30, 2026. Of that balance, approximately $5.0 million was held at Bit Digital and approximately $138.5 million at WhiteFiber. Contract liabilities were $154.1 million. Remaining performance obligations were approximately $729.0 million at quarter end, of which approximately $13.5 million is expected to be recognized during the balance of 2026, $235.1 million in 2027, and $206.9 million in 2028, and the remainder thereafter.
Consolidated convertible notes, net of unamortized costs and discount, totaled $445.3 million as of September 30, 2026, compared with $336.2 million as of June 30. The September 30 balance includes Bit Digital’s 2030 Convertible Notes, with $150 million in principal outstanding, and WhiteFiber’s 2031 and 2032 Convertible Notes. In September, WhiteFiber repaid $30 million of the Delayed Draw Term Loan Facility and Bit Digital separately repaid $30 million to Galaxy. Subsequent to quarter-end, on October 27, WhiteFiber received an additional $70 million drawdown, bringing the facility to $100 million outstanding.
As of September 30, 2026, the company held approximately 163,725.9 ETH, with a market value of $439.4 million based on a closing ETH price of approximately $2,684. During the quarter it liquid staked 73,683 ETH and received 66,192 LsETH, pledged 19,000 LsETH as collateral, sold 1,625 ETH for $3.4 million, acquired no ETH, and recorded a $3.2 million non-cash impairment on LsETH. Subsequent to quarter-end, an additional 45,000 LsETH was pledged in connection with WhiteFiber’s October drawdown.
Chief Executive Officer Sam Tabar said native staking generated 474 ETH during the quarter, bringing rewards earned through September to approximately 1,863 ETH.
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