Bit Digital (NASDAQ:BTBT) used its fourth quarter and full-year 2025 earnings call to outline a strategic repositioning away from bitcoin mining and toward an “Ethereum and AI infrastructure” model, while also reviewing results that reflected a sharp swing to a net loss driven largely by digital asset revaluation.
Company positions itself as a “strategic asset company” centered on Ethereum and AI infrastructure
Chief Executive Officer Samir Tabar said the company “reposition[ed] the company as a strategic asset company or SAC, centered on Ethereum and AI infrastructure.” As part of that shift, Tabar said Bit Digital began exiting bitcoin mining, built a larger Ethereum (ETH) position, and established WhiteFiber as a core asset.
Tabar also noted that the company has been “deliberate” in how it deploys capital, saying Bit Digital is “not accumulating ETH at any price” and is “disciplined with how we use equity with a focus on long-term value per share.”
Staking revenue rose sharply as mining winds down
Tabar said staking income is expected to become “a meaningful and recurring contributor to cash flow,” adding that staking revenue grew “nearly 300% in 2025.” He said nearly half of full-year staking revenue was generated in the fourth quarter, reflecting the scaling of Bit Digital’s ETH position throughout the year.
On bitcoin mining, Tabar said the company continues to wind down the segment “in a deliberate manner.” As of year-end, he said active hash rate was approximately 1.5 exahash, and Bit Digital is “not allocating growth or replacement capital to this segment.” While mining is “no longer a strategic focus,” Tabar said it continues to generate cash flow during the transition, and he expects hash rate to decline gradually as older miners retire.
WhiteFiber viewed as long-term AI infrastructure exposure; no planned monetization in 2026
Tabar reiterated that Bit Digital’s ownership in WhiteFiber provides exposure to AI infrastructure, where he said “demand for compute continues to outpace supply.” He called the stake a “core long-term strategic asset” and said the company does not intend to monetize its WhiteFiber position in 2026.
Tabar also framed the WhiteFiber stake as a differentiator and a source of flexibility, describing it as “a high-quality liquid asset on our balance sheet” that could, over time, support capital allocation and “reduce reliance on dilutive sources of capital.”
During Q&A, Tabar said Bit Digital holds a “70% majority stake in WhiteFiber,” and pointed to what he characterized as key attributes of the business, including that WhiteFiber “has an $865 million contract” and “has a hyperscaler” associated with the end customer for a North Carolina site.
Financial results show revenue growth in cloud and colocation, but net loss on revaluation impacts
Chief Financial Officer Erke Huang said the company’s 2025 results include WhiteFiber, which Bit Digital continues to consolidate following its IPO, and noted that a portion of results is attributable to non-controlling interests.
Huang reported first quarter revenue of $32.3 million, up from $25.8 million in the same period last year. Full-year revenue was $113.6 million, a 5% increase compared to 2024, which Huang said reflected growth in cloud, colocation, and staking alongside the wind down of bitcoin mining.
By segment for the full year, Huang reported:
- Digital asset mining revenue: $27.3 million, down 53% versus 2024
- Cloud services revenue: $68.8 million, up 50% year-over-year
- Colocation services revenue: $8.9 million, up from $1.4 million in the prior year
- Ethereum staking revenue: $7.0 million, up from $1.8 million in 2024
Huang said that as of year-end, “the majority of our ETH holdings were actively staked,” and he emphasized that the revenue mix is shifting away from mining and toward staking and infrastructure-related revenue.
On profitability, Huang reported first quarter gross profit of approximately $18 million, representing a gross margin of approximately 56% compared to approximately 40% in the same period last year.
For full-year 2025, Huang reported a net loss attributable to Bit Digital shareholders of $84.9 million, compared to net income of $28.3 million in 2024. He attributed the change “largely” to a “less favorable year-over-year impact from digital asset revaluation.” Adjusted EBITDA for the year was negative $24.9 million, compared to positive $73.0 million in 2024, which Huang said reflected the same dynamic, as “non-cash digital asset revaluation offset improvements in our operating businesses.”
On the balance sheet, Huang said Bit Digital ended the year with $118.4 million in cash and cash equivalents, up from $95.2 million at the end of 2024. He said the increase primarily reflected cash held at WhiteFiber, which is consolidated in Bit Digital’s financial statements.
Huang also reported total digital assets of $415.7 million at year-end, up from $161.4 million in the prior year, which he said reflected ETH accumulation “partially offset by lower year-end ETH prices.” During the year, Huang said Bit Digital issued $150 million of convertible notes, with proceeds used to increase ETH holdings.
M&A focus shifts toward cash-flowing businesses tied to crypto, Ethereum, and potentially “agentic AI”
In the question-and-answer portion of the call, Tabar said M&A is part of Bit Digital’s strategy for building a “durable cash flow engine.” Responding to B. Riley Securities analyst Nick Giles, Tabar said potential targets would not be other digital-asset treasury companies, but rather “a business that is generating cash or is on its way to generating cash, so we can deploy that capital and invest it into Ethereum.”
Tabar said Bit Digital has been “quite active” in reviewing opportunities and that targets could include “crypto-adjacent businesses, aligned with Ethereum,” and “even potentially with agentic AI that has an intersection with Ethereum,” provided the business has a “very clear path towards cash flow.”
Asked about timing, Tabar said the company has been in discussions with candidates for “the past couple of months,” starting “early January,” but declined to provide a firm timeline, adding, “I do hope for it to happen… this year,” while emphasizing that selecting the right acquisition is more important than speed.
Tabar also said the company is hiring “another person to help with the due diligence process” and noted that once the company identifies top candidates, it would proceed with deeper diligence and engage bankers and lawyers.
Separately, Huang addressed questions about yield strategy on Bit Digital’s ETH holdings. He said the “majority of our ETH has stayed native,” adding that while the company has explored restaking and liquid staking strategies, it views native staking as offering the “most… risk-adjusted” returns currently, though it continues to explore opportunities to enhance returns.
Huang said Bit Digital works with Figment for native staking and that Figment runs validator nodes for the company. He added that roughly 10% of ETH exposure is deployed with third-party fund managers generating “about 3%-4%,” which he said is higher than “a 3% native staking rewards.” Huang said the company’s target is to increase that allocation “from 10% to 20%,” depending on available strategies, sizing, and risk considerations, adding that Bit Digital is “super careful” and “selective” regarding counterparties.
About Bit Digital (NASDAQ:BTBT)
Bit Digital, Inc (NASDAQ: BTBT) is a publicly traded digital asset mining company that specializes in the proof-of-work mining of Bitcoin. Incorporated in Nevada and headquartered in New York City, Bit Digital develops, owns and manages a fleet of high-efficiency ASIC miners, with the primary aim of generating newly minted Bitcoin through computational work. The company’s revenue is derived solely from its mining operations and any resulting cryptocurrency holdings.
To support its mining activities, Bit Digital maintains multiple data center facilities across North America.
