Bit Digital, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $27.1 million, an 11% decline compared to $30.5 million in Q3 2025; for the nine months ended September 30, 2026, total revenue was $87.1 million, a 7% increase year over year.
• Gross profit for Q3 2026 was $15.2 million, representing a gross margin of 56.1%.
• Net income attributable to Bit Digital shareholders for Q3 2026 was $28.5 million ($0.08 per diluted share), compared to a net loss of $107.2 million ($0.31 per diluted share) in Q2 2026.
• Net cash provided by operating activities was $163.2 million for the nine months ended September 30, 2026, compared to a cash use of $204.9 million in the same period of 2025.
• Cash and cash equivalents totaled approximately $143.5 million as of September 30, 2026 ($5.0 million at Bit Digital and $138.5 million at WhiteFiber), up from $83.6 million as of June 30, 2026.
• Consolidated convertible notes totaled $445.3 million as of September 30, 2026, up from $336.2 million as of June 30, 2026.
• Contract liabilities were $154.1 million as of September 30, 2026, compared to $7.7 million as of December 31, 2025.

Guidance and Future Outlook:

• Remaining performance obligations were approximately $729.0 million at quarter end, with $13.5 million expected to be recognized in the remainder of 2026, $235.1 million in 2027, and $206.9 million in 2028.
• The Company does not intend to sell WhiteFiber shares in 2026 and views the position as a long-term strategic asset.
• The Company does not expect to allocate meaningful growth or maintenance capital to the Bitcoin mining segment going forward.
• Capital allocation is expected to continue shifting toward Ethereum and infrastructure-related opportunities.
• Management indicated that shareholder approval is required before implementing a share repurchase program and that any decision would depend on funding plans that improve value per share while maintaining liquidity.

Business Segments and Product Lines:

• Cloud Services revenue was $18.1 million in Q3 2026, up slightly year-over-year, with a gross margin of approximately 56%.
• Colocation services revenue was $5.6 million in Q3 2026, a 232% increase from Q3 2025 and a 19% sequential increase from Q2 2026, with a gross margin of approximately 57%. The increase was driven by the MTL-3 site becoming fully operational in November 2025 and revenue generation from the first 20 MW of contracted capacity at the NC-1 facility.
• ETH staking revenue was $1.0 million in Q3 2026, down from $2.9 million in Q3 2025 due to repositioning ETH into liquid staking for WhiteFiber financing, but up 14% sequentially from Q2 2026. For the nine months, ETH staking revenue increased 11% year over year.
• Digital asset mining revenue was $2.0 million in Q3 2026 (28.4 Bitcoin mined), down from $7.4 million (64.9 Bitcoin mined) in Q3 2025, representing a 63% decline for the nine months. The segment generated a gross margin of approximately 27%.
• The Company held approximately 163,725.9 ETH as of September 30, 2026, with a market value of $439.4 million.
• During Q3, the Company liquid staked 73,683 ETH, receiving 66,192 LsETH; 19,000 LsETH was pledged as collateral, and 47,192 LsETH was retained as a buffer.
• The Company sold 1,625 ETH for $3.4 million during the quarter at an average price of $2,114.62 and acquired no ETH.
• A non-cash impairment of $3.2 million was recorded on LsETH during the quarter.

Market and Competitive Landscape:

• The Company operates as a Strategic Asset Company focused on Ethereum strategies and AI/HPC infrastructure through its majority ownership stake in WhiteFiber.
• WhiteFiber results are consolidated, with a portion attributable to non-controlling interests.
• As of September 30, 2026, Bit Digital held 27,043,750 shares of WhiteFiber (59.7% of outstanding shares) with an implied value of approximately $487 million.
• The Company holds an investment portfolio including third-party managed funds and smaller holdings providing exposure to private AI businesses and digital asset market infrastructure.

Risks and Challenges:

• The Company notes that investing in securities involves risks, including those described in its Annual Report on Form 10-K and subsequent filings.
• Risks include the potential for business operations to be impaired by material risks, which could lead to a decline in security value and loss of investment.
• The Company highlights the trade-offs between funding share repurchases through selling Ethereum (which reduces staking income and exposure to ETH appreciation) versus maintaining liquidity.
• Forward-looking statements involve assumptions, risks, and uncertainties, and actual results could differ materially.

Management Commentary and Tone:

• CEO Sam Tabar stated that Q3 results reflect a continued shift toward Ethereum and AI infrastructure, noting sequential growth in colocation revenue and native ETH staking revenue.
• Management reported positive GAAP earnings, attributing the result significantly to digital asset valuation gains.
• Native staking generated 474 ETH during the quarter, bringing total rewards earned through September to approximately 1,863 ETH.
• Management described the persistent discount to net asset value as a factor making share repurchases an option deserving serious consideration, subject to funding and shareholder approval.
• The tone remains constructive on owned assets, with a focus on translating asset value into shareholder returns.

Analyst Questions and Answers:

• No specific analyst questions and answers were included in the provided press release text.

Other Key Points:

• WhiteFiber repaid $30 million of the Delayed Draw Term Loan Facility in September, and Bit Digital separately repaid $30 million to Galaxy.
• Subsequent to the quarter end (October 27), WhiteFiber received an additional $70 million drawdown under the facility, bringing total outstanding to $100 million.
• 45,000 LsETH were pledged as collateral subsequent to the quarter end in connection with WhiteFiber's $70 million drawdown.
• The Company's 2030 Convertible Notes include $150 million in principal outstanding, alongside WhiteFiber's 2031 and 2032 Convertible Notes.
• The Company continues to wind down the Bitcoin mining business, which remains gross margin positive but is no longer a strategic growth priority.