Bit Digital, an Ethereum treasury firm, reported a 13.6% revenue decline to $27.9 million in Q1 2026, down from the previous quarter's performance. According to the company's earnings report released Thursday, the revenue drop was primarily attributed to lower cloud services revenue, reduced ETH staking revenue, and decreased digital asset mining revenue. The company continues its strategic transition away from bitcoin mining toward Ethereum-focused operations, with mining now described as cash flow generative but no longer a strategic growth priority. Cloud services remained the company's largest revenue segment at $16.8 million, though the figure slipped 13.1% quarter-on-quarter, while co-location services generated $4.8 million in revenue. The company's net loss widened to $150.3 million in Q1 from $185.3 million in Q4 2025, primarily due to $121.1 million in losses on digital assets and higher depreciation and general administrative expenses.
Revenue from ETH staking fell 29.4% to $2.3 million from the previous quarter, reflecting lower average ether prices and reduced natively staked balances. As reported by The Block, the company repositioned approximately 70,000 ETH into liquid staking to maintain treasury flexibility. Bit Digital held roughly 154,444 ETH worth about $327 million at quarter-end, with an average acquisition price of $3,045 per ether. Ethereum declined 29% during the quarter to $2,104 on March 31, trading at $2,245 on Friday. The latest treasury figure represents a significant increase from the company's November 2025 disclosure of approximately 153,547 ETH valued at around $590.5 million at the end of October. According to the latest financial statements, the company earned 949.1 ETH from native staking and nil ETH from liquid staking during Q1 2026, compared to 211.0 ETH and nil ETH respectively in Q1 2025.
Crypto mining revenue fell 32.9% from the previous quarter to $3.7 million, attributed to decreased BTC production and weaker average BTC prices during the period. The company's net loss improved to $146.7 million in Q1 from $185.3 million in Q4 2025**, though results continued to be impacted by non-cash mark-to-market adjustments on digital assets. Bit Digital's total liabilities jumped to $572.0 million, primarily from convertible notes payable increasing to $334.2 million and deferred revenue expanding to $144.5 million. The company's active hash rate remained at an aggregate of 1.1 EH/s for bitcoin miners as of March 31, 2026, with 48.1 bitcoins received from the Foundry mining pool during the quarter. General and administrative expenses increased significantly to $27.6 million from $8.2 million in the previous quarter, primarily due to $13.0 million in share-based compensation expenses and $6.1 million in professional and consulting expenses.
Bit Digital CEO Sam Tabar emphasized the company's early identification of industry shifts, stating they believe they are early again at the convergence of AI and Ethereum. As reported by The Block, the company sits at both layers of this thesis: providing compute infrastructure through WhiteFiber and settlement rails through its Ethereum treasury and staking platform. Bit Digital's shares declined 3.7% in after-hours trading on Thursday after closing up 4.9% during regular session, though the stock has gained 39% over the past month despite being down 7% over six months. The company holds about 27 million WhiteFiber shares and retained majority ownership in the business, which previously raised nearly $160 million through an IPO in August 2025. The company's cash, cash equivalents and restricted cash of $83.9 million, plus $295.0 million of BTC and ETH, provide liquidity, but rising leverage and dependence on crypto valuations heighten earnings volatility.
