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Bit Digital, Inc (BTBT)·Q3 2025 Earnings Summary

Executive Summary

  • Bit Digital delivered Q3 revenue of $30.5M (+33% YoY) driven by Cloud (+48% YoY) and ETH staking (+542% YoY); GAAP diluted EPS was $0.47 on $146.7M net income as digital asset gains flowed through income .
  • Versus S&P Global consensus, revenue was roughly in-line/slightly below ($30.0M actual vs $30.31M est), normalized EPS missed (Primary EPS -$0.0665 vs -$0.004 est), while EBITDA massively beat on digital asset gains; expect models to separate GAAP volatility from core staking/cloud trends (S&P Global)*.
  • ETH treasury strategy accelerated: ETH holdings grew to 122,187 at 9/30 and 153,547 at 10/31 with 132,480 actively staked, underpinning a scaling, yield-bearing balance sheet; WhiteFiber remains consolidated with a 70.7% stake (value $734.8M at 9/30) .
  • Management reiterated disciplined leverage (<20% of ETH holdings), purchased ~31,057 ETH using proceeds from $150M unsecured converts (4% due 2030, $4.16 conversion), and stated it will not sell any WhiteFiber shares during 2026—key signals for capital allocation and overhang mitigation .

What Went Well and What Went Wrong

  • What Went Well

    • Cloud services revenue rose to $18.0M (+48% YoY), and ETH staking revenue scaled to $2.9M (+542% YoY), reflecting rapid progress in the ETH-native treasury model and continued AI/HPC demand via WhiteFiber .
    • GAAP profitability inflected sharply: net income of $146.7M ($0.47 diluted EPS) and adjusted EBITDA of $166.8M, aided by $146.0M in digital asset gains; gross margin expanded to ~60% (vs ~32% in 3Q24) .
    • Strategic financing executed on favorable terms: $150M unsecured converts (4% due 2030; $4.16 conversion) used to add ~31,057 ETH, with management emphasizing accretion to mNAV per share and disciplined leverage policy (<20% of ETH holdings) .
    • Quote: “Our strategy is centered on building one of the largest and most efficient Ethereum treasuries… while maintaining exposure to the… AI infrastructure economy through our majority stake in WhiteFiber” — CEO Sam Tabar .

  • What Went Wrong

    • Bitcoin mining revenue declined 27% YoY to $7.4M amid lower production and reduced hash rate as the segment winds down; production fell to 64.9 BTC vs 165.4 BTC YoY, though margins remained ~32% .
    • Consolidated G&A spiked to $33.1M given share-based comp and consulting tied to the WhiteFiber IPO/transition; management flagged normalization as non-recurring items roll off and as standalone BTBT becomes leaner .
    • Versus S&P consensus, normalized EPS (Primary EPS) missed (-$0.0665 vs -$0.004), highlighting volatility and a gap between GAAP results (boosted by digital asset gains) and Street’s normalized constructs (S&P Global)*.

Financial Results

Headline financials and margins

MetricQ1 2025Q2 2025Q3 2025
Revenue ($M)$25.1 $25.7 $30.5
GAAP Diluted EPS ($)$(0.32) $0.07 $0.47
Net Income ($M)N/A$14.9 $146.7
Adjusted EBITDA ($M)$(44.5) $27.8 $166.8
Gross Margin (%)N/A~49% ~60%

Segment revenue breakdown

Segment Revenue ($M)Q1 2025Q2 2025Q3 2025
Digital Asset Mining$7.8 $6.6 $7.4
Cloud Services$14.8 $16.6 $18.0
Colocation Services$1.6 $1.7 $1.7
ETH Staking$0.6 $0.4 $2.9

KPIs and balance sheet

KPIQ1 2025Q2 2025Q3 2025 / Post-Q3
ETH Held (units)24,434 at 3/31 30,663 at 6/30 122,187 at 9/30; 153,547 at 10/31
ETH Actively Staked (units)21,568 at 3/31 21,568 at 6/30 99,936 at 9/30; 132,480 at 10/31
ETH Staking Rewards (units)211.0 (Q1) 166.8 (Q2) 644.3 native + 52.9 liquid (Q3)
ETH Staking Yield (annualized)~3.1% (Q2) ~3.1% (Q2) ~3.05% (Q3)
BTC Mined (units)83.3 (Q1) 68.2 (Q2) 64.9 (Q3)
Active Hash Rate / Efficiency1.5 EH/s at 3/31 1.2 EH/s; ~25 J/Th at 6/30 ~1.9 EH/s; ~22 J/Th at 9/30
Cash & Equivalents ($M)$61.3 at 3/31 $181.2 at 6/30 $179.1 at 9/30
Digital Assets ($M)$44.5 ETH FV at 3/31 $91.2 at 6/30 $423.7 at 9/30
WhiteFiber Ownership / ValueN/A74.3% at 8/13; $468.4M stake ~70.7% at 9/30; $734.8M stake

Q3 2025 results vs S&P Global consensus (company actuals shown for context)

MetricConsensus (S&P)*Actual (S&P “actual”)*Company Actual
Revenue ($)30,314,80030,009,414$30.5M
EBITDA ($)11,222,500153,383,859Adj. EBITDA $166.8M (incl. $146.0M digital asset gains)
Primary EPS ($)-0.004-0.0665GAAP diluted EPS $0.47

Values retrieved from S&P Global.*

Guidance Changes

Metric/PolicyPeriodPrevious GuidanceCurrent GuidanceChange
ETH Staking Mix/Target YieldMedium termNative ~3% baseline Pursue external strategies to lift yield to ≥4% and boost 10–20% above native; can stake up to 100% of ETH; two custodians (Fireblocks, Cactus/Metaco) Raised ambition / clarified approach
Leverage PolicyOngoingNot explicitly cappedKeep total leverage <20% of ETH holdings; currently above threshold post-notes, won’t add leverage until ETH appreciates New policy articulation
Bitcoin Mining2025–2026Exploring alternatives / wind-down Minimal-to-no maintenance capex; active hash rate to trend to ~1.2 EH/s by mid-2026; focus on margin as fleet sunsets Maintained wind-down; added trajectory
WhiteFiber Shares2026Lockup expires Feb-2026Will not sell any WhiteFiber shares during 2026 New commitment
Capital DeploymentOngoingEquity raises; potential ATM; increase auth. shares proposal $150M unsecured converts (4% due 2030, $4.16 conv.), proceeds used to buy ~31,057 ETH Executed financing/ETH purchase

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Ethereum treasury strategyPivot announced; scaled to ~121k ETH post-Q2; staking ~3.1% yield; conviction in ETH’s long-term role ETH grew to 122k at 9/30 and 153.5k at 10/31; staking revenue $2.9M; emphasis on disciplined, accretive accumulation Accelerating
AI/HPC (WhiteFiber)IPO completed; still consolidated; strong pipeline; rebranding and partnerships (B200, Shadeform, Cerebras) Emphasis on retrofit execution; Cerebras site ramp; consolidation continues; no WYFI sales in 2026 Strengthening
Regulatory environmentGENIUS Act/stablecoin clarity; “Clarity Act” moving; friendlier SEC narrative Ongoing regulatory clarity supports ETH adoption; ETH touted for zero downtime and institutional fit Improving tailwind
Mining wind-downExploring alternatives; redeploying/retiring hardware; maintain margins 64.9 BTC mined; ~32% gross margin; hash/efficiency metrics; minimal capex; sunset continues Methodical wind-down
Capital allocationEquity issuance; potential ATM; authorization increase $150M unsecured converts; leverage cap <20% ETH; proceeds to ETH Disciplined financing

Management Commentary

  • Strategic message: “We’re building one of the largest and most efficient Ethereum treasuries in the public markets while maintaining exposure to AI infrastructure through our majority stake in WhiteFiber.” — CEO Sam Tabar .
  • ETH conviction: “For investors, Bit Digital offers an actively managed, yield-generating way to gain Ethereum exposure… The third quarter was about execution.” — CEO .
  • Leverage/notes discipline: “We closed a $150M offering of 4% convertible notes due 2030… Our plan is to keep total leverage below 20% of ETH holdings.” — CFO .
  • WYFI overhang addressed: “We will not sell any of our White Fiber shares during 2026.” — CEO .
  • Staking approach: “We can stake 100%… targeting strategies that generate yield above native staking (~3%).” — CFO .

Q&A Highlights

  • ETH vs other chains: Management emphasized Ethereum’s reliability (no downtime), developer base, and regulatory clarity as differentiators for institutional adoption .
  • Staking strategy and custody: BTBT uses Figment for native staking; aims to augment yield via external managers to ≥4% while balancing risk; dual custodians (Fireblocks, Cactus/Metaco) .
  • Mining path: Business is sunsetting with a focus on margin and efficiency; hash rate expected to trend toward ~1.2 EH/s by mid-2026; minimal maintenance capex .
  • Capital markets: Company favors unsecured converts to finance ETH at accretive terms; maintains conservative leverage and has an ATM program it will use opportunistically .
  • M&A stance: Limited appetite for DATT consolidation; prioritizes buying ETH and leveraging unique dual exposure to ETH and AI via WYFI stake .

Estimates Context

  • Q3 vs S&P Global: Revenue roughly in-line/slight miss ($30.01M actual vs $30.31M est, ~-1.0%); EBITDA far above ($153.38M vs $11.22M) due to digital asset gains; normalized Primary EPS missed (-$0.0665 vs -$0.004) (S&P Global)*.
  • Implications: Street models likely need clearer separation between core operating drivers (Cloud/Colocation/Staking) and mark-to-market digital asset effects; forward estimates for staking revenue should lift given higher staked balances at 10/31 and activation lag commentary .
  • Company-reported GAAP diluted EPS ($0.47) diverges from S&P’s normalized EPS due to inclusion of digital asset gains in GAAP; expect continued EPS volatility tied to ETH price, with operating metrics better captured via revenue mix, gross margin, and staking yields .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Core growth engines (Cloud, Colocation, Staking) are scaling, with staking set to become the primary “recurring” engine as ETH holdings and activation catch up into Q4 .
  • Capital allocation is shareholder-aligned: unsecured converts at a premium to mNAV funded incremental ETH; leverage capped <20% of ETH holdings; WYFI share sale overhang removed for 2026 .
  • Expect GAAP EPS volatility; focus on segment revenues, gross margin, staking yield/coverage, and ETH-denominated balance sheet growth to assess underlying performance .
  • Mining remains a positive-margin but shrinking contributor; watch efficiency improvements and wind-down cadence as potential slight margin tailwinds .
  • Near-term trading catalysts: ETH price trajectory, staking activation tailwind into Q4, and any incremental ETH accumulation; medium-term thesis centers on compounding NAV/share via disciplined ETH accumulation and yield, with strategic flexibility from WYFI stake .
  • Regulatory clarity remains a supportive macro tailwind for Ethereum adoption and staking economics per management’s view .

References:

  • Q3 press release and 8-K: revenue/mix, net income/EPS, adjusted EBITDA, ETH treasury metrics, mining update, WYFI consolidation/value .
  • Q3 call: gross margin, G&A context, leverage policy, staking operations, WYFI lock-up, strategy/tone .
  • Q2 press release/call: prior quarter baseline for revenue/mix, staking, mining wind-down, capital markets posture .
  • Q1 press release: earlier trend lines for segment revenue and AI/HPC initiatives .
  • Converts and ETH purchase: terms and deployment into ETH .

Values retrieved from S&P Global.*