Bit Digital reported third quarter revenue of $27.07 million, missing analyst consensus estimates of $32.88 million by 17.7%, according to financial results released Thursday. Revenue declined 11% from $30.5 million in the same quarter a year earlier.
The company posted net income attributable to shareholders of $28.5 million, or $0.08 per diluted share, compared with a net loss of $107.2 million in the previous quarter. Gross profit reached $15.2 million, representing a 56.1% margin. Digital asset gains, impairments, and other nonoperating items contributed a net $16.3 million to the quarterly result.
Strategic Shift Away from Mining
Colocation revenue surged 232% year-over-year to $5.6 million, supported by the initial contribution from WhiteFiber's NC-1 data center campus. Cloud services revenue reached $18.1 million, up slightly from the previous year.
By contrast, Bitcoin mining revenue dropped to $2 million from $7.4 million, with production declining to 28.4 BTC from 64.9 BTC. Ethereum staking revenue fell to $1 million from $2.9 million after the company moved ETH into liquid staking to support WhiteFiber financing.
Asset Holdings and Capital Allocation
As of September 30, Bit Digital held approximately 163,726 ETH and ETH equivalents valued at $439.4 million. The company sold 1,625 ETH for $3.4 million during the quarter and made no new ETH purchases.
Bit Digital maintained a 59.7% ownership stake in WhiteFiber, valued at approximately $487 million at quarter end. Its consolidated cash balance reached $143.5 million, while convertible notes totaled $445.3 million, up from $336.2 million in June.
CEO Sam Tabar said the company is considering share repurchases because its stock trades at a discount to net asset value. Any repurchase program would require shareholder approval, and management has not committed to pursuing one.
The company stated that Bitcoin mining is no longer a strategic growth priority as it continues allocating capital toward Ethereum and artificial intelligence infrastructure.
