Bit Digital revenue falls 14% as ETH staking and mining drop

Bit Digital, a Nasdaq-listed company focused on digital assets and infrastructure, reported a 13.6% drop in total revenue for the first quarter of 2025, bringing in $27.9 million compared to the previous quarter. The decline was largely driven by lower earnings from cloud services, ETH staking, and crypto mining, according to its earnings report released Thursday.

ETH staking revenue takes a hit

Revenue from ETH staking fell sharply by 29.4% quarter-over-quarter to $2.3 million. The company attributed this to lower average ether prices and reduced natively staked balances. To maintain what it called “treasury flexibility,” Bit Digital repositioned roughly 70,000 ETH into liquid staking. As of the end of March, the company held about 154,444 ETH, worth roughly $327 million at the time, with an average acquisition price of $3,045.

Ethereum itself saw a rough quarter, dropping 29% to $2,104 by March 31. It was trading around $2,245 on Friday, according to data from The Block.

Cloud services and mining also decline

Cloud services revenue dipped 13.1% from the previous quarter to $16.8 million, while co-location services added $4.8 million. Crypto mining revenue fell more sharply, dropping 32.9% to $3.7 million, which the company said was due to lower Bitcoin production and weaker average BTC prices during the period.

Bit Digital posted a net loss of $146.7 million for the quarter, an improvement from the $185.3 million loss in Q4 2025. But the company noted that results were still affected by non-cash mark-to-market adjustments on its digital asset holdings.

Bitcoin mining winds down

The company has been gradually moving away from Bitcoin mining since mid-2025, when it announced a shift toward an Ethereum staking and treasury strategy. Bit Digital was also an early mover among crypto miners diversifying into high-performance computing, launching Bit Digital AI in 2023.

In the latest report, Bit Digital said it continued to reduce its Bitcoin mining exposure. “Mining remains cash flow generative but is no longer a strategic growth priority,” the firm stated. Capital is expected to keep shifting toward Ethereum and infrastructure-related opportunities moving forward.

CEO Sam Tabar emphasized the company’s timing in identifying industry trends. “We believe we are early again at the convergence of AI and Ethereum,” he said. Tabar positioned Bit Digital at the intersection of providing compute infrastructure through its WhiteFiber subsidiary and settlement rails via its Ethereum treasury and staking platform.

WhiteFiber, an HPC subsidiary, raised nearly $160 million in an IPO in August 2025. At the end of March, Bit Digital held about 27 million WhiteFiber shares and maintained a majority ownership stake.

Stock performance mixed

Bit Digital’s shares fell 3.7% in after-hours trading Thursday, after closing the regular session up 4.9%. The stock has gained 39% over the past month, though it remains down 7% over the past six months.

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