Bit Digital Q1 loss hits as ETH staking revenue drops; ETH treasury rises

Published: 2026-05-16 08:41:11 |

Bit Digital reported a $146.7 million net loss in Q1 2026, with results pressured by lower ETH prices even as its ETH treasury grew. Revenue declined 13.6% QoQ to $27.9 million, driven by weaker cloud services, reduced ETH staking revenue, and lower crypto mining activity. ETH staking revenue fell 29% to $2.3 million, reflecting weaker average ETH prices and changes in staking balances. The company shifted about 70,000 ETH into liquid staking via LsETH to improve flexibility; native staking stood at 60,677 ETH as of April 30. It also ended the quarter holding about 155,444 ETH, valued at roughly $327 million using the March 31 ETH close. Bit Digital is continuing to scale back bitcoin mining. BTC mining revenue dropped 33% QoQ to $3.7 million, though management said BTC mining remains cash-flow positive and is no longer a core growth strategy. The firm is expanding its AI and infrastructure exposure through Whitefiber, described as integrating Ethereum settlement with AI-driven on-chain value transfer between agents and applications. For crypto traders, this Bit Digital earnings update reinforces near-term uncertainty around ETH-linked cash flows due to ETH price volatility, while also signaling ongoing accumulation and staking yield tactics tied to the ETH treasury.

Neutral

Bit Digital’s Q1 shows a mixed market signal for ETH: ETH staking revenue fell sharply (cash-flow pressure) due to ETH price weakness, which can weigh on near-term sentiment and company-specific risk pricing. However, the company still increased/maintained a large ETH treasury and actively managed staking through LsETH to preserve yield and flexibility. With BTC mining shrinking but remaining cash-flow positive, the immediate volatility appears more tied to ETH price dynamics than a fundamental loss of ETH exposure. Net effect: traders may expect short-term headline-driven swings around ETH-linked earnings, but the long-term implication is more incremental (continued accumulation and staking).