Bit Digital reported a $146.7 million quarterly loss on Friday, blaming lower ether prices for the hit to its balance sheet. The publicly traded crypto miner holds more than 155,000 ETH in its treasury — worth about $327 million at current prices — making it one of the most concentrated corporate bets on Ethereum. The loss underscores the risks of a strategy that has moved the firm away from Bitcoin mining and toward staking and AI infrastructure.
The $146.7 million hole
The loss, disclosed in Bit Digital’s first-quarter earnings, comes as ether has traded roughly 20% below its level three months ago. The company’s Ethereum treasury, once a source of strength during the 2025 rally, turned into a liability as prices dropped. Bit Digital did not say whether it plans to hedge its position or trim its holdings.
Ethereum-heavy balance sheet
With 155,000 ETH on hand, Bit Digital is far more exposed to ether’s price swings than most of its mining peers. The treasury alone accounts for the bulk of the company’s market cap. That kind of concentration can amplify gains in a bull market, but it also leaves little room for error when prices turn. The company’s shift away from Bitcoin mining — where it once focused — has amplified that dependency.
Staking income dries up
Bit Digital also reported that staking income declined in the quarter. The firm has been earning yield by staking its Ethereum holdings, but lower network activity and a drop in fee revenue cut into those returns. Staking was supposed to provide a steady income stream to offset the volatility of mining revenue. Instead, it’s now another source of pressure.
Pivot to AI infrastructure
Beyond Ethereum, Bit Digital has been pouring capital into AI computing infrastructure — repurposing its mining facilities for high-performance computing workloads. The idea is to diversify beyond crypto altogether. But that pivot is still early: AI revenue hasn’t yet been large enough to cushion a $146.7 million loss. The company’s quarterly report didn’t give a timeline for when that side of the business might meaningfully contribute.
