Key Takeaways:
Bit Digital, Inc. (NASDAQ: BTBT) saw its shares fall more than 5% in after-hours trading after reporting a 13.7% sequential decline in first-quarter revenue to $27.9 million, as the company accelerates its strategic shift away from Bitcoin mining and toward Ethereum and artificial intelligence.
"Our current strategy is centered on three areas: Ethereum treasury and staking, AI infrastructure through our WhiteFiber holding, and building durable cash flow through disciplined capital allocation," Chief Executive Officer Samir Tabar said on the company's earnings call. "Capital will continue shifting towards Ethereum and infrastructure-related opportunities."
The revenue decline from $32.3 million in the fourth quarter of 2025 was broad-based. Digital asset mining revenue fell just under 33% to $3.7 million, while Ethereum staking revenue decreased by about 29.4% to $2.3 million. The company reported a net loss of $146.7 million for the quarter, narrower than the $185.3 million loss in the prior period.
The pivot marks a significant transformation for the one-time mining firm, which now holds a substantial Ethereum treasury and a large stake in an AI infrastructure company. As of March 31, Bit Digital held approximately 155,444 ETH, valued at $327 million at the time, alongside a $322.1 million stake in AI firm WhiteFiber. However, the transition is consuming capital, with cash and equivalents dropping to $79.5 million from $118.4 million at the end of 2025.
Management emphasized that Ethereum and AI are the new core pillars of Bit Digital's strategy. As of April 30, the company had approximately 60,677 ETH natively staked, generating yield. CEO Samir Tabar noted that the company views Ethereum as "foundational infrastructure for digital assets" and was recently approved by the Ethereum Foundation to purchase ETH directly from the foundation, a move he called "an important validation of our long-term commitment."
The company's investment in WhiteFiber is positioned as a long-term holding to gain exposure to the high-demand AI compute market. "We continue viewing WhiteFiber as a long-term holding and do not intend to monetize the position in 2026," Tabar said, adding that the convergence of AI and Ethereum is a key theme for the company's future.
In a marked shift, executives confirmed that Bitcoin mining is no longer a primary focus. While the operations remain cash-flow generative, Tabar stated that mining is "no longer a strategic growth priority." This was reflected in the quarter's results, where mining revenue saw the steepest decline among its business segments. Chief Financial Officer Erke Huang attributed the drop to lower Bitcoin production and lower average Bitcoin prices during the quarter. The company's financial profile is now deliberately evolving toward infrastructure, staking, and treasury management.
This article is for informational purposes only and does not constitute investment advice.
