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Mining & Infrastructure · 2 min read

Bit Digital Posts $28.5M Q3 Profit as It Winds Down Bitcoin Mining

The company held 163,726 ETH valued at $439.4 million and grew colocation revenue 232% while pivoting capital toward AI infrastructure.

Editorial oversight: Julian Mercer, Chief Editor
Neutral
$ETH $2,019 −1.8% $BTC $72,830 −1.6%

At a glance

What happened
Bit Digital posted $28.5 million in Q3 2026 net income and reported holding 163,725.9 ETH alongside expanding colocation revenue.
Why it matters
The company is phasing out capital allocation to bitcoin mining, reallocating corporate resources into liquid-staked ETH and AI data centers.
Who is affected
Bit Digital shareholders, WhiteFiber equity holders, and institutional crypto treasury observers.
What's next
Bit Digital hosts an earnings call on November 12, 2026, at 8:30 AM ET to discuss the financial results.
Primary source
PR Newswire: Bit Digital, Inc. Announces Third Quarter 2026 Financial Results

Key points

  • Bit Digital reported Q3 2026 net income of $28.5 million, up from a $107.2 million loss in Q2 2026, helped by $16.3 million in digital asset gains.
  • The firm held 163,725.9 ETH valued at $439.4 million on Sept. 30, with 64,000 LsETH total pledged as borrowing collateral through late October.
  • Colocation revenue rose 232% year-over-year to $5.6 million, while bitcoin mining revenue fell to $2.0 million as the unit winds down.

Bit Digital reported net income of $28.5 million for the third quarter of 2026, rebounding from a net loss of $107.2 million in the previous quarter, according to a corporate earnings release 1. The swing to profitability was driven by $16.3 million in net gains on digital assets alongside expanding data center infrastructure revenues, even as total revenue contracted 11% year-over-year to $27.1 million 1.

The Nasdaq-listed firm continued redirecting its balance sheet away from legacy proof-of-work mining toward $ETH treasury operations and high-performance computing 1. Revenue from digital asset mining fell 63% for the first nine months of the year, bringing in $2.0 million on 28.4 $BTC mined during the quarter 1. Chief Executive Officer Sam Tabar confirmed that mining is no longer a growth priority and will receive negligible capital moving forward 1. The broader transition mirrors institutional efforts to capture structural yield across alternative crypto assets, as detailed in recent reporting on long-term Bitcoin addressable market forecasts.

Treasury Shifts and AI Colocation

Bit Digital closed the quarter on Sept. 30 holding 163,725.9 ETH valued at $439.4 million based on a quarter-end market price of $2,684 1. Of that balance, 74,606.4 ETH was held directly or natively staked, while the company converted 73,683 ETH into 66,192 LsETH liquid staking tokens 1. It pledged 19,000 LsETH as borrowing collateral and deposited an additional 45,000 LsETH on Oct. 27 to back a $70 million credit drawdown by its majority-owned subsidiary WhiteFiber 1. ETH staking generated $1.0 million in third-quarter revenue, producing 474 ETH in native rewards 1.

Concurrently, data center colocation revenue jumped 232% year-over-year to $5.6 million, lifted by operations at its MTL-3 site and the initial 20 MW deployed at the NC-1 campus 1. Cloud services contributed another $18.1 million 1. Bit Digital holds a 59.7% equity interest in WhiteFiber, with an implied valuation of approximately $487 million as of Sept. 30 1. Consolidated cash stood at $143.5 million at quarter-end, with $138.5 million residing at WhiteFiber, while remaining contract obligations reached $729.0 million across the multi-year backlog 1.

Sources

  1. [1] Bit Digital, Inc. Announces Third Quarter 2026 Financial Results — PR Newswire, November 12, 2026

Written by Basis Desk's newsroom system from the primary sources above and machine-verified against them before publication. Market figures marked "at the time of writing" come from live exchange data. Report an error: corrections@basisdesk.news · corrections policy.

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