Bit Digital (BTBT) Q1 2026 earnings summary

Executive summary

• Strategic transition advanced toward Ethereum treasury/staking, AI infrastructure (WhiteFiber), and recurring cash flow, with reduced exposure to Bitcoin mining and a focus on disciplined capital allocation.

• Maintained majority ownership in WhiteFiber, which expanded its HPC and AI infrastructure business, with 27,043,750 shares valued at $322.1 million as of March 31, 2026.

• Approved by the Ethereum Foundation to purchase ETH directly, validating long-term commitment to the ecosystem.

• Ongoing diligence on potential acquisition targets and expansion of recurring cash flow generation.

• Reported Q1 2026 net loss of $146.7 million, improved from Q4 2025, mainly due to non-cash mark-to-market adjustments on digital assets.

Financial highlights

• Q1 2026 total revenue was $27.9 million, down 13.7% from Q4 2025 but up 11% year-over-year.

• Cloud services revenue: $16.8 million (down 13.1% Q/Q, up 13% Y/Y); colocation services: $4.8 million (up 23.9% Q/Q, tripled Y/Y).

• ETH staking revenue: $2.3 million (down 29.4% Q/Q, up 310% Y/Y); digital asset mining revenue: $3.7 million (down 33% Q/Q, down 52% Y/Y).

• Gross margin for Q1 2026 was $15.4 million, with segment gross margins of 59.5% in cloud, 59.3% in colocation, and 94.7% in ETH staking.

• Cash and equivalents: $79.5 million (Mar 31), down from $118.4 million (Dec 31, 2025); digital assets: $295 million, down from $415.7 million.

Outlook and guidance

• Expect continued shift toward Ethereum, infrastructure, and treasury management, reducing reliance on legacy mining.

• Anticipate persistent high demand for AI compute and power, with opportunities in constrained supply.

• Management expects full revenue contribution from major cloud and colocation contracts in the second half of 2026.

• Sufficient liquidity to fund operations for at least 12 months, supported by recent equity and debt financings.

• Remain disciplined in capital allocation and focused on long-term value creation.