Bit Digital (NASDAQ:BTBT) Posts Earnings Results, Beats Expectations By $0.11 EPS

Bit Digital (NASDAQ:BTBT) posted its quarterly earnings data on Thursday. The company reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.11, Zacks reports. The business had revenue of $27.07 million during the quarter, compared to analysts’ expectations of $32.21 million. Bit Digital had a negative net margin of 237.19% and a negative return on equity of 10.66%.

Here are the key takeaways from Bit Digital’s conference call:

• Colocation is expanding: WhiteFiber’s NC1 facility had all 40 MW of contracted capacity operational and billing by the call, supporting a 10-year, $865 million contract. Colocation revenue rose to $5.4 million from $4.7 million in the prior quarter, and cloud, colocation and staking together accounted for about 91% of revenue.
• Revenue declined sequentially: Third-quarter revenue fell to $27.1 million from $32.1 million, as cloud services revenue dropped to $18.1 million from $23.8 million. Cloud revenue included a $3.4 million termination fee, while the former customer generated no recurring revenue.
• Reported earnings included substantial valuation effects: Net income attributable to Bit Digital shareholders was $28.5 million, but the quarter also included $84 million in digital-asset gains and an $80.8 million induced-conversion expense at WhiteFiber. Management said nine-month operating cash flow of $163 million was materially supported by customer advances for services not yet delivered.
• ETH-backed financing carries collateral and liquidity risks: Bit Digital had $100 million outstanding under its bridge facility to WhiteFiber, funded by borrowing against liquid-staking ETH; management said repayment is targeted for the second quarter of 2027. Executives acknowledged ETH volatility, variable staking rewards and obligations tied to collateralized assets.
• Share repurchases remain uncertain: Management cited a roughly 39% discount to NAV but said a buyback requires shareholder approval and that funding and liquidity trade-offs are still being evaluated. Potential value-unlocking steps—including selling some WhiteFiber shares or developing a new business—remain conditional or early-stage.

Bit Digital Price Performance

Shares of NASDAQ BTBT traded down $0.10 during mid-day trading on Friday, reaching $0.67. The company had a trading volume of 7,334,789 shares, compared to its average volume of 25,705,645. The company has a current ratio of 1.51, a quick ratio of 1.51 and a debt-to-equity ratio of 0.69. The stock has a market cap of $241.98 million, a PE ratio of -0.64 and a beta of 3.54. The company has a 50-day moving average price of $1.27 and a two-hundred day moving average price of $1.56. Bit Digital has a 1-year low of $0.66 and a 1-year high of $2.55.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Zacks Research raised Bit Digital from a “strong sell” rating to a “hold” rating in a report on Friday, July 17th. HC Wainwright decreased their price target on Bit Digital from $4.00 to $3.50 and set a “buy” rating for the company in a research note on Thursday. UBS Group upgraded Bit Digital to a “buy” rating in a research report on Monday, September 28th. JonesTrading raised Bit Digital to a “strong-buy” rating in a research note on Saturday, September 26th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Bit Digital in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $4.25.

Bit Digital News Summary

These are some of the BTBT news items that stood out recently:

• Positive Sentiment: Management highlighted expanding colocation activity: 40 MW has begun billing under the company’s 10-year, $865 million NC-1 contract. This offers a potential recurring-revenue source as Bit Digital builds its AI and high-performance computing business. Bit Digital outlines NC-1 contract and billing
• Neutral Sentiment: HC Wainwright lowered its price target from $4.00 to $3.50 but maintained a Buy rating. The target reduction tempers the positive recommendation. HC Wainwright cuts Bit Digital price target
• Negative Sentiment: Revenue was $27.07 million, below analyst expectations of $32.21 million and down 11% year over year. The earnings beat therefore came alongside a top-line miss, while reports also noted a slide in mining activity. Revenue declines despite earnings beat

Bit Digital Company Profile

Bit Digital, Inc. is a digital-asset and infrastructure company whose activities include Bitcoin mining, Ethereum staking and computing services for artificial intelligence workloads. Its operations have expanded beyond cryptocurrency mining as it develops data-center capacity and related infrastructure for high-performance computing. The company has conducted Bitcoin mining operations in North America and participates in Ethereum staking, which involves supporting the network and earning rewards for validating transactions.