Bit Digital Revenue Drops 13.6% as Ethereum Staking Income Falls in Q1

Bit Digital reported a 13.6% quarter on quarter revenue decline in Q1 2026, generating $27.9 million compared to the previous quarter. Firm said weaker ETH staking returns, lower cloud services revenue, and reduced mining output all contributed to the drop.

The company posted a net loss of $146.7 million for the quarter, slightly improved from the $185.3 million loss in Q4 2025. Management attributed much of the loss to non-cash mark-to-market adjustments on its digital asset holdings.

ETH Staking Revenue Falls as Market Prices Decline

Ethereum staking revenue fell 29.4% to $2.3 million, reflecting lower ETH prices and reduced staking balances. Bit Digital said it has repositioned around 70,000 ETH into liquid staking to maintain flexibility in its treasury operations.

Cloud services brought in $16.8 million, while colocation services contributed $4.8 million. Bitcoin mining revenue dropped nearly 33%, as the company continued to reduce exposure to mining in favor of Ethereum based strategies.

Ethereum fell 29% during the quarter to $2,104 on March 31, and was trading at $2,265 on Friday.

Strategic Pivot Toward Ethereum and AI Infrastructure

Bit Digital held approximately 154,444 ETH worth about $327 million at quarter-end, with an average acquisition price of $3,045. The firm confirmed it is continuing its transition away from Bitcoin mining, stating that Ethereum staking and AI-linked infrastructure will be its core focus going forward.