Bit Digital Misses Q3 Revenue Estimates Despite $28.5M Profit

Bit Digital (NASDAQ: $BTBT) reported third-quarter revenue below Wall Street expectations on Wednesday, despite returning to profitability.

The company generated $27.1 million in revenue for the three months ended September 30, missing analyst estimates of approximately $32.2 million by 15.8%, according to an SEC filing. Revenue also fell 11% from the $30.5 million reported in the same period last year.

Net income attributable to Bit Digital shareholders reached $28.5 million, or $0.08 per diluted share, compared with a net loss of $107.2 million, or $0.31 per share, in the second quarter.

The return to profitability came as higher digital asset valuations and growing data center operations helped offset declining Bitcoin (CRYPTO: $BTC) mining and Ethereum (CRYPTO: $ETH) staking revenue.

Colocation services provided one of the stronger parts of the business, generating $5.6 million in revenue, up 232% year over year and 19% from the previous quarter.

Cloud services revenue stood at $18.1 million, while Ethereum staking generated $1 million, down from $2.9 million a year earlier. The company attributed the decline partly to moving ETH into liquid staking positions to support WhiteFiber (NASDAQ: $WYFI) financing.

Bitcoin mining revenue fell to $2 million from $7.4 million in the year-ago quarter. Bit Digital mined 28.4 BTC, compared with 64.9 BTC a year earlier, as it continued scaling back the business.

At the end of September, Bit Digital held approximately 163,726 ETH worth $439.4 million and a 59.7% stake in WhiteFiber valued at roughly $487 million.

“Our third-quarter results reflect the continued shift toward Ethereum and AI infrastructure,” CEO Sam Tabar said,

Bit Digital shares are currently trading at $0.79, down 5.6% in pre-market trading. The company’s shares are down more than 61% year-to-date.