Bit Digital, Inc Q3 FY2025 earnings call

• Bit Digital completed its transformation into an Ethereum-focused company, with ETH holdings growing significantly. Staking revenue increased due to a larger staked balance and higher realized yield price.
• Financial results: Total revenue was $30.5 million; net income was $146.7 million; adjusted EBITDA was $166.8 million. Balance sheet had ~$179 million in cash and cash equivalents, ~$424 million in digital assets (almost entirely Ethereum), and total liquidity ~$620 million.
• Future priorities: Responsible capital allocation, scaling staking operations, maintaining a strong financial position. Ownership of White Fiber as a strategic asset, with no plan to sell White Fiber shares in 2026.

Ethereum Staking: Revenue totaled $2.9 million in the third quarter, up from $400,000 in the prior quarter. At quarter-end, Bit Digital held about 122,000 ETH, with ~100,000 ETH staked (82% of total holdings). By October, ETH holdings rose to over 153,000 with ~132,000 actively staked. Mining: Produced 65 Bitcoin in the third quarter, down from 83 in the prior quarter. Mining revenue was $7.4 million, with a gross margin of 32%. Active hash rate was about 1.9 exahash, expected to trend towards 1.2 exahash by mid-2026 as less efficient mining units are retired.

• Plan to keep total leverage below 20% of ETH holdings; will not increase leverage until ETH price rises comfortably.
• Staking income expected to be the main engine of results, with ETH position continuing to grow.
• Mining fleet efficiency expected to improve as less efficient units are retired, with hash rate trending to 1.2 exahash by mid-2026.

• Market and regulatory uncertainties in the digital asset space.
• Uncertainty in mining economics due to changing hash prices and machine retirements.
• Risks associated with external staking partners and custodians.

Q: George Sutton asked about Bit Digital's belief in Ethereum relative to other blockchains.

A: Sam Tabar stated Ethereum has no downtime, is best for smart contracts, has regulatory clarity, and a large developer community.

Q: Brian Dobson inquired about competition and capital raising.

A: Sam Tabar discussed Bit Digital's differentiation via unsecured converts and ownership of White Fiber; Eric Wong talked about monitoring leverage and capital raising strategies.

Q: Kevin Dede asked about mining hash rate and staking yields.

A: Sam Tabar and Eric Wong discussed mining wind-down plans and staking strategies aiming for yields above native staking's 3%.

Q: Nick Giles asked about consolidation and M&A in the digital asset space.

A: Sam Tabar mentioned Bit Digital's unique position and no immediate M&A plans, emphasizing ownership of White Fiber.

Q: Mike Grondahl asked about challenges with White Fiber.

A: Sam Tabar discussed lease complications and the Enovum acquisition's role in retrofitting data centers.

Q: Pat McCann asked about ranking as an ETH treasury and G&A expenses.

A: Sam Tabar and Eric Wong talked about responsible ETH purchasing and normalized G&A expenses becoming leaner in the future.