Key Highlights

  • Net income attributable to shareholders was USD 28.5 million, or USD 0.08 per diluted share.
  • Cloud services Revenue was USD 18.1 million, including a USD 3.4 million termination fee.
  • Colocation revenue reached USD 5.4 million, compared with USD 1.7 million a year earlier.
  • The company held approximately 163,726 ETH and ETH equivalents at the end of September.

Bit Digital (NASDAQ:BTBT) reported third-quarter 2026 Earnings Per Share of USD 0.08, against an estimate of a loss of USD 0.05, on revenue of USD 27.10 million, against an estimate of USD 32.21 million. Consolidated Net Income was USD 0.6 million after USD 27.9 million of losses were allocated to non-controlling interests, and net income attributable to Bit Digital shareholders was USD 28.5 million.

The company operates cloud services, colocation, Ethereum staking and Bitcoin Mining activities, and holds a majority interest in WhiteFiber, whose results consolidate into its own.

Segment Revenue and Valuation Items

Cloud services revenue was USD 18.1 million, compared with USD 23.8 million in the second quarter, and included a USD 3.4 million termination fee from the initial customer. Recurring Revenue after that customer's termination was partly offset by deployments for new customers. Colocation revenue was USD 5.4 million, against USD 4.7 million in the second quarter, with growth from the MTL-3 site and an initial contribution from NC-1, which generated about USD 1.1 million of net income.

Native staking revenue was USD 1 million, against USD 903 thousand, on 474 ETH earned compared with 440 ETH. Digital asset mining revenue was USD 2 million on 28.4 bitcoin mined, against USD 2.4 million on 32.3 bitcoin. Rewards inside liquid staking tokens are accounted for separately.

The company recorded USD 84 million of gains on digital assets, USD 5.4 million of gains on transfers of liquid staking tokens into Collateral arrangements, a USD 3.2 million Impairment on liquid staking tokens and a USD 10.7 million gain on remeasurement of the derivative Liability tied to its convertible notes. Other income included USD 17.1 million of unrealized gains on digital Assets held through a third-party fund. WhiteFiber's settlement of part of its 2031 convertible notes produced a USD 80.8 million induced conversion expense.

WhiteFiber, Ethereum and Balance Sheet

Management said temporary switchgear issues slightly delayed the ramp, and that the full 40 megawatts of contracted revenue is now operational under a USD 865 million, ten-year contract. WhiteFiber recently closed a USD 300 million secured Credit facility, to be funded later in November, which supports repayment of a bridge Loan Bit Digital made to it. After quarter end, WhiteFiber completed the Acquisition of the NC-2 and NC-3 sites in Yadkin County, North Carolina.

At the end of September, Bit Digital owned approximately 163,726 ETH and ETH equivalents. Native staking generated about 474 ETH in the quarter at an average annualized Yield of about 3.4%, and 1,863 ETH over the first nine months. In September, after WhiteFiber repaid a USD 30 million delayed draw facility, Bit Digital repaid USD 30 million of its loan from Galaxy and reduced collateralized liquid ETH from 39,000 to 19,000. After WhiteFiber drew a further USD 70 million, bringing the total outstanding to USD 100 million, collateralized liquid ETH stood at 64,000, equal to 70,892 ETH, as of October 21.

Working capital was USD 69.0 million at September 30, 2026, against USD 85.1 million at December 31, 2025. Contract liabilities were USD 154.1 million, against USD 7.7 million.

Allocation Test and Reported Measures

Management described its test for each allocation decision as the effect on value per share. The reported measures framing that test are the ETH holdings, the staking yield, the WhiteFiber facilities and the Working Capital balance. Capitalized costs to obtain contracts were USD 24.2 million at quarter end.