--- title: "Bit Digital Posts $28.5M Q3 Profit as It Winds Down Bitcoin Mining" description: "The company held 163,726 ETH valued at $439.4 million and grew colocation revenue 232% while pivoting capital toward AI infrastructure." url: https://basisdesk.news/news/bit-digital-q3-2026-earnings-ethereum-treasury published: 2026-11-12T11:41:19.457Z modified: 2026-11-12T11:41:19.457Z section: Mining & Infrastructure author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [ETH, BTC] tags: [Bit Digital, Ethereum, Bitcoin mining, WhiteFiber, staking, earnings] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # 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. ## 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:** [Bit Digital, Inc. Announces Third Quarter 2026 Financial Results](https://www.prnewswire.com/news-releases/bit-digital-inc-announces-third-quarter-2026-financial-results-302937164.html) — PR Newswire ## 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. ## Editorial remark - **Context:** Bit Digital has systematically shifted its operational identity from a dedicated proof-of-work bitcoin miner to a hybrid Ethereum treasury holder and high-performance computing landlord. - **Impact:** Shareholders see mining exposure largely replaced by equity in WhiteFiber and levered staking yields, tying the company's operating performance to enterprise AI hosting demand and ETH valuation. - **Watch:** Execution against WhiteFiber's $729 million in remaining contract obligations, with $13.5 million scheduled for delivery across the remainder of 2026. 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](https://basisdesk.news/news/bitwise-raises-long-term-bitcoin-projection-1-6-million). ## 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. [Bit Digital, Inc. Announces Third Quarter 2026 Financial Results](https://www.prnewswire.com/news-releases/bit-digital-inc-announces-third-quarter-2026-financial-results-302937164.html) — PR Newswire, 2026-11-12 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai