Key Highlights

  • Bit Digital held approximately 162,080.6 ETH as of May 31, 2026, worth about $324.8 million, per a company treasury update.
  • The company retains a 70.1% stake in WhiteFiber, Inc. (Nasdaq: WYFI), taken public in an August 2025 IPO.
  • First-quarter 2026 revenue was $27.9 million, but a $121.1 million non-cash mark-to-market loss on digital assets drove a $146.7 million net loss.
  • WhiteFiber's pipeline underpins the bull case: a 40-megawatt, 10-year data-center agreement with Nscale, roughly 76 megawatts expected online by year-end 2026, and over $175 million of new cloud contract value signed in May 2026.

Bit (NASDAQ:BTBT) Digital has recast itself from a bitcoin miner into an Ethereum treasury and staking company that also controls roughly 70% of Nasdaq-listed AI infrastructure operator WhiteFiber. With 162,080.6 ETH reported as of May 31, 2026, and a new loan facility funding WhiteFiber's data-center buildout, the company is testing whether digital-asset and AI infrastructure can reinforce each other rather than simply add volatility.

Why BTBT Is Back on Investors' Radar

Bit Digital, Inc., trading on Nasdaq under BTBT, has spent the past year transforming from a bitcoin miner into what it calls a "Strategic Asset Company," built on an Ethereum treasury and staking business plus a majority stake in WhiteFiber, Inc., a separately listed AI infrastructure operator. Its July 2026 investor presentation calls Bit Digital the fourth-largest public holder of ETH.

That framing matters because the stock has traded at a persistent discount to the combined value of its ETH and WhiteFiber holdings: an implied 34% discount to what the company calls its market net asset value as of May 31, 2026. Narrowing that gap depends on execution and on Ethereum's price, which drives the swings in quarterly results.

From Bitcoin Miner to Ethereum Treasury and AI Landlord

Bit Digital announced in June 2025 it would pivot from bitcoin mining to become a "pure play" ETH staking and treasury company, converting bitcoin holdings into Ethereum over time. Its March 31, 2026 quarterly filing said it had "commenced a strategic alternatives process for its bitcoin mining operations, which is expected to result in a sale or wind-down." The July 2026 investor deck describes the residual mining fleet as sunsetted to roughly 1 exahash per second, and the first-quarter release called mining "cash flow generative but no longer a strategic growth priority."

Alongside that pivot, Bit Digital built an AI infrastructure business, now run through WhiteFiber, Inc., taken public in an IPO that closed August 8, 2025 at $17.00 per share, per SEC filings. WhiteFiber operates data centers and cloud services for AI workloads, anchored by a flagship U.S. campus, NC-1. Bit Digital retains a 70.1% stake, down slightly from 71.5% shortly after the IPO as WhiteFiber issued additional equity.

Bit Digital's (BTBT) WhiteFiber Loan: The Flywheel's First Test

In late May 2026, subsidiary Bit Digital Capital, Inc. entered a delayed-draw term loan with a WhiteFiber subsidiary developing NC-1, per an 8-K filed May 27, 2026. The facility provides up to $100 million, expandable to $150 million, at 9.5% interest stepping to 8%, funded partly through a Galaxy Digital LLC loan near 5.45%: a positive spread alongside equity upside from the majority WhiteFiber stake.

Management calls this a flywheel: raise capital, acquire ETH, stake it for yield, fund WhiteFiber's buildouts, and compound value, aiming eventually for shares to trade at a premium to net asset value rather than the 34% discount seen on May 31, 2026. The mechanism still depends on ETH's price holding up, since a decline shrinks treasury value, widens GAAP losses, and raises the cost of future capital against an already-discounted stock.

BTBT's Ethereum and WhiteFiber Metrics, Verified

A release dated June 26, 2026 covering May said the company held approximately 162,080.6 ETH as of May 31. At a closing price near $2,004, the holding was valued around $324.8 million, against an average acquisition cost of roughly $3,008 per coin: well above the prevailing market price. About 74,163 ETH, or 46% of holdings, remained natively staked, generating an annualized yield near 3.1%.

Bit Digital held 27,043,750 WhiteFiber shares on both March 31 and May 31, 2026. That stake's implied value swung sharply between the dates: about $322.1 million at WhiteFiber's $11.91 close on March 31, versus roughly $755.6 million at a $27.94 close on May 31: a reminder the stake depends on WYFI's own trading pattern, separate from the ETH business.

Revenue, Profitability, Cash, Debt and Funding

Bit Digital reported first-quarter 2026 revenue of $27.9 million, up from $25.1 million a year earlier but down 13.6% from $32.3 million in the fourth quarter of 2025, per its May 14, 2026 earnings release. Cloud services contributed $16.8 million, colocation $4.8 million, digital-asset mining $3.7 million, and ETH staking $2.3 million. Staking revenue nearly quadrupled year over year but fell 29.4% sequentially on lower ETH prices and a temporary shift of roughly 70,000 ETH into liquid staking.

The bigger story was the bottom line. A $121.1 million non-cash mark-to-market loss on digital assets, versus $49.2 million a year earlier, drove a net loss attributable to shareholders of $146.7 million, far wider than the $57.7 million loss a year earlier.

Cash fell to $79.5 million as of March 31, 2026, from $118.4 million at year-end. Digital assets on the balance sheet declined to $295.0 million from $415.7 million, which the company said "primarily reflected lower ETH prices at quarter-end, rather than reductions in holding." The at-the-market program raised $4.1 million of net proceeds on 2.37 million shares (modest dilution versus $10.2 million a year earlier) though shares outstanding still climbed to roughly 353.4 million by end-May from 326.6 million at end-March.

Growth Opportunities and Near-Term Milestones

WhiteFiber's pipeline underpins the bull case: a 40-megawatt, 10-year data-center agreement with Nscale, roughly 76 megawatts expected online by year-end 2026, and over $175 million of new cloud contract value signed in May 2026. On the ETH side, Bit Digital can shift holdings between native and liquid staking, and any ETH recovery would lift treasury value and narrow the mNAV discount management is targeting.

Risks Specific to Bit Digital's Dual-Track Model

Results remain acutely sensitive to Ethereum's price, since much of the balance sheet is marked to market each quarter; the first quarter's $121.1 million non-cash loss shows how fast that exposure moves earnings. The Galaxy Digital loan can terminate if net asset value or net worth falls by specified monthly thresholds, tying financing directly to crypto-market conditions. The WhiteFiber term loan becomes unsecured once permanent financing arrives. Continued at-the-market issuance adds to a share count that has grown meaningfully, and winding down bitcoin mining removes a cash-generative revenue stream.

Outlook

In an upside case, Ethereum recovers, staking yields hold near 3%, WhiteFiber executes on schedule, and shares re-rate toward net asset value. In a base case, cloud and colocation revenue keeps growing while ETH holdings and earnings fluctuate with crypto markets, leaving the stock rangebound. In a downside case, a sustained ETH decline compounds mark-to-market losses, stresses the Galaxy financing, and coincides with delays at WhiteFiber's projects. None of this involves a price forecast; it shows how the same two assets could reinforce the flywheel or amplify each other's weakness.

Conclusion

Bit Digital, Inc. (BTBT) has built a distinctive structure: one of the largest corporate Ethereum treasuries, paired with majority ownership of a fast-growing AI infrastructure company in WhiteFiber. The 162,080.6 ETH position and roughly 70% WhiteFiber stake are verified as of their respective reporting dates, and the intercompany loan linking the two businesses is a step toward the flywheel management describes. Whether it compounds value or amplifies volatility depends largely on Ethereum's price and WhiteFiber turning its pipeline into cash flow.

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Share prices can rise or fall, and past performance does not guarantee future results. Investors should conduct independent research and consult a licensed financial adviser before making investment decisions.