Ethereum News Update: Bit Digital's Move to Ethereum Increases Earnings, But Fails to Lift Investor Sentiment as Stock Declines

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Bitget-RWA2025/11/16 15:10

By:Bitget-RWA

- Bit Digital's Q3 2025 revenue rose 34% to $30.5M, driven by Ethereum staking and WhiteFiber AI infrastructure growth. - Ethereum holdings surged 400% to 153,547 ETH ($590.5M), while staking revenue jumped 542% to $2.9M year-over-year. - Despite strong financials ($179M cash, $620M liquidity), shares fell 6.35% as investors questioned long-term strategy shifts. - CEO Sam Tabar emphasized Ethereum's "zero downtime" advantage, with staking now accounting for 9.5% of total revenue. - Analysts highlight the d

Bit Digital Inc. (BTBT)

announced a 34% increase in revenue compared to the previous year

reaching $30.5 million for Q3 2025, fueled by a strategic move toward

Ethereum

staking and the complete integration of its AI infrastructure arm, WhiteFiber. As of October 31, the company’s Ethereum reserves

climbed to 153,547 ETH

with an estimated value of $590.5 million, while income from staking

soared 542% year-over-year

to $2.9 million. Despite these strong numbers, the stock dropped 6.35% in premarket trading,

indicating mixed reactions from investors

regarding the company’s future direction.

This quarterly report marks a significant shift away from Bit Digital’s previous emphasis on

Bitcoin

mining. Revenue from crypto mining fell 27% to $7.4 million year-over-year,

due to lower hash rates

and greater network complexity. CEO Sam Tabar

highlighted this transition

during the earnings discussion, saying, "Ethereum never experiences downtime. Wall Street will support a blockchain that operates without interruption." The company now

intends to dedicate all capital

to Ethereum staking, targeting yields above 3%.

WhiteFiber, which accounts for 70.7% of Bit Digital’s equity assets,

generated $18.0 million in cloud services revenue

, a 48% increase from the previous year. This division, together with Ethereum staking,

compensated for the drop in Bitcoin mining

and lifted the company’s adjusted EBITDA to $166.8 million. Bit Digital maintains a robust balance sheet, holding $179 million in cash and $620 million in total available liquidity.

The company’s digital asset portfolio has been transformed by this new strategy. Ethereum assets

increased from 30,663 ETH

at the end of June to 153,547 ETH by October 31, marking a 400% surge in just a quarter. This growth was supported by a $150 million convertible note issuance, with 31,057 ETH acquired in October alone. Meanwhile, Bitcoin mining production

dropped to 64.9 BTC

in Q3, down from 165.4 BTC a year earlier.

Analysts point to the dual emphasis on Ethereum and AI infrastructure as a key differentiator.

Tabar commented

: "Bit Digital’s approach places it at the crossroads of two major trends: Ethereum’s growing role in financial infrastructure and the rising demand for AI infrastructure." The company’s Ethereum staking now makes up 9.5% of total revenue,

a significant rise from almost nothing

in 2024.

Although the stock’s decline after the earnings release has raised some concerns, the overall market outlook remains optimistic.

Ethereum’s rising value

and the increasing institutional interest in staking services have provided momentum for companies such as

Bit Digital

. The firm’s $424 million in digital assets and the $734.8 million valuation of its WhiteFiber stake further underscore its financial strength.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Bitget-RWA•2025/11/16 22:28

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Bitget-RWA•2025/11/16 22:28