Bit Digital Expands Ethereum and AI Infrastructure Strategy as Q1 Revenue Reaches $27.9 Million
Bit Digital Expands Ethereum and AI Infrastructure Strategy as Q1 Revenue Reaches $27.9 Million
Bit Digital Inc. (NASDAQ: BTBT) reported first-quarter 2026 revenue of $27.9 million, highlighting its continued shift from Bitcoin mining toward Ethereum treasury management, staking, AI cloud services, and data center infrastructure.
The company said its strategy is now centered on two major growth areas: Ethereum-based financial infrastructure and artificial intelligence computing infrastructure. This move is being supported through its majority-owned subsidiary, WhiteFiber, which focuses on AI-related cloud and colocation services.
Ethereum Treasury Remains a Core Focus
As of March 31, 2026, Bit Digital held about 155,444 ETH, valued at roughly $327 million based on an ETH closing price of around $2,104. The company’s average acquisition cost for its Ethereum holdings was approximately $3,045 per ETH.
During the quarter, Bit Digital repositioned about 70,000 ETH into liquid-staked Ethereum. This approach allowed the company to keep more flexibility in its treasury while still aiming to generate yield from its digital asset holdings. By April 30, around 60,677 ETH remained natively staked.
AI Cloud and Colocation Services Drive Infrastructure Push
Bit Digital’s colocation business was one of the stronger areas in the quarter. Revenue from colocation services increased 23.9% quarter-over-quarter to $4.8 million, helped by a full-quarter contribution from the company’s MTL-3 facility.
Cloud services generated $16.8 million in revenue, while Ethereum staking produced $2.3 million. The company’s segment margins also showed strength, with Ethereum staking posting a gross margin of about 94.7%. Cloud services delivered a gross margin near 59.5%, while colocation reached about 59.3%.
CEO Highlights Convergence of Ethereum and AI
CEO Sam Tabar said Bit Digital is positioning itself where two major infrastructure trends meet: AI compute capacity and Ethereum-based settlement systems. He noted that Ethereum infrastructure could become increasingly important as stablecoins, tokenization, and on-chain settlement activity continue to grow globally.
According to the company, Ethereum infrastructure and AI compute infrastructure are not separate strategies. Instead, Bit Digital sees them as connected parts of a wider platform built for the future of digital finance and high-performance computing.
Revenue Declines From Previous Quarter
Although Bit Digital continued building its long-term strategy, total Q1 revenue declined 13.6% from $32.3 million in the fourth quarter of 2025. The decrease was linked to lower contributions from cloud services, Ethereum staking, and digital asset mining.
The company reported a net loss attributable to shareholders of $146.7 million, narrowing from a loss of $185.3 million in the previous quarter. The results continued to reflect non-cash mark-to-market adjustments related to digital assets.
Bit Digital also posted an adjusted EBITDA loss of $9.4 million for the quarter. Cash and cash equivalents stood at $79.5 million at quarter-end, compared with $118.4 million at the end of December 2025.
Bitcoin Mining No Longer a Main Growth Priority
Bit Digital said it is continuing to wind down its Bitcoin mining operations. While the segment remains cash-flow generative, the company no longer views it as a major strategic growth priority.
This marks a clear change in direction for the company. Instead of focusing mainly on Bitcoin mining, Bit Digital is now building a broader digital infrastructure business around Ethereum staking, treasury management, AI cloud services, and colocation facilities.
Outlook
Bit Digital’s first-quarter update shows a company in transition. The business is moving away from its earlier mining-focused model and toward infrastructure markets that it believes have stronger long-term potential.
Its Ethereum holdings, staking operations, AI cloud services, and data center assets are now central to its growth plan. However, the company still faces challenges, including digital asset price volatility, lower quarterly revenue, and continued losses.
For investors, the key question will be whether Bit Digital can turn its Ethereum and AI infrastructure strategy into stable revenue growth and improved profitability over the coming quarters.
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