Bit Digital reports US$27.1M revenue and US$143.5M cash
Most consolidated cash sits at WhiteFiber, while pledged ether supports borrowing and new project financing remains subject to funding conditions.
Julian Okafor
An AI infrastructure expansion is tying up digital assets as quarterly revenue falls and most cash sits inside a listed subsidiary. Bit Digital, Inc. NASDAQBTBT, an Ethereum treasury and computing investor, reported third-quarter revenue of US$27.1 million on Thursday, down 11 per cent from a year earlier. Revenue was US$30.5 million in the third quarter of 2025.
Consolidated cash and cash equivalents stood at US$143.5 million at Sept. 30. WhiteFiber, Inc. NASDAQWYFI, its majority-owned AI cloud and data-centre operator, held US$138.5 million of that balance, while Bit Digital itself held approximately US$5 million. The parent owned 59.7 per cent of WhiteFiber at Sept. 30.
Net income attributable to Bit Digital shareholders was US$28.5 million for the third quarter, compared with a second-quarter loss of US$107.2 million. The release groups US$16.3 million of the quarterly gain under digital-asset gains, impairments and non-operating items, including conversion expense.
Bit Digital shares NASDAQBTBT closed at US$0.79 at 4:00 p.m. EST on Nov. 11. WhiteFiber shares NASDAQWYFI closed at US$10.43 at 4:00 p.m. EST on Nov. 11. Both closes preceded Thursday's announcement.
Computing Revenue Includes A Termination Fee
Cloud services generated US$18.1 million of third-quarter revenue, little changed from a year earlier. WhiteFiber's own Nov. 10 results show that approximately US$3.4 million of that total came from an additional customer termination fee.
Colocation revenue rose 232 per cent to US$5.6 million in the third quarter. Bit Digital attributed the increase to its Montreal site becoming fully operational in November 2025 and the initial contribution from 20 megawatts of contracted capacity at WhiteFiber's North Carolina campus.
WhiteFiber said all 40 megawatts of contracted IT capacity at that campus were operating and billing by Nov. 10. Switchgear-related commissioning issues had delayed the ramp beyond August. The operating update follows WhiteFiber's conditional project-financing agreement, which Mugglehead covered on Nov. 10.
Read more: WhiteFiber subsidiaries sign US$300M NC-1 loan with funding conditions
Pledged Ether Sits Apart From Cash
Bit Digital reported approximately 163,725.9 ETH at Sept. 30. Its liquid-staking tokens are accounted for separately from native ether and carried at cost less impairment, so their accounting value does not follow the same fair-value treatment.
At Sept. 30, pledged liquid-staking tokens were recorded as a US$37.1 million digital-asset collateral receivable. Another 47,192 LsETH, carried at US$98.3 million, remained as a buffer against margin requirements. The company recorded a non-cash impairment on LsETH during the quarter.
After quarter-end, another 45,000 LsETH were pledged in connection with WhiteFiber's US$70 million borrowing on Oct. 27. That draw brought the outstanding balance under the existing facility to US$100 million, according to Bit Digital.
Ethereum staking revenue fell to US$1 million in the third quarter from US$2.9 million a year earlier. Bit Digital attributed the decline to moving ether into liquid staking to collateralize WhiteFiber financing during the second quarter.
"We also reported positive GAAP earnings, with digital asset valuation gains contributing significantly to the result," Bit Digital chief executive Sam Tabar said in the release.
Bitcoin mining revenue fell to US$2 million in the third quarter from US$7.4 million a year earlier. Bit Digital said the decline reflected its continuing winddown of mining and that it does not expect to allocate meaningful growth or maintenance capital to the business.
New Project Financing Remains Conditional
Consolidated convertible notes, net of unamortized issuance costs and debt discount, totaled US$445.3 million at Sept. 30. That included US$150 million of principal on Bit Digital's notes due in 2030, alongside WhiteFiber convertible notes.
WhiteFiber's new US$300 million project facility comprises US$200 million of initial term loans and a US$100 million delayed-draw component. The agreement prices SOFR borrowing at the benchmark plus six percentage points, subject to a 2 per cent SOFR floor. Initial funding remained subject to conditions at the Nov. 10 results release and was expected later in November or early December. Upon funding, proceeds are expected to reimburse part of WhiteFiber's invested development equity after required project costs, reserves and fees.
WhiteFiber targets approximately US$365 million of annualized cloud revenue at full deployment by mid-2027. That target depends on equipment delivery, customer acceptance, data-centre readiness and securing financing. It describes a future run rate rather than revenue already earned.
Bit Digital management is scheduled to discuss the results on its Nov. 12 earnings call at 8:30 a.m. EST.
