Bit Digital, Inc Q1 FY2026 earnings call

• Strategic Business Transition • BitDigital is actively executing a strategic asset transition, shifting capital and focus away from legacy Bitcoin mining toward three core verticals: Ethereum treasury and staking, AI infrastructure via WhiteFibre, and durable cash flow generation through disciplined capital allocation. The company views these verticals as complementary, with Ethereum providing long-term treasury exposure and staking yield, and WhiteFibre providing exposure to high-demand AI compute infrastructure. • Bitcoin mining is no longer a strategic growth priority, though it remains cash flow generative; the company will continue reducing exposure to this segment over time.

• Ethereum Strategy and Ecosystem Engagement • Management views Ethereum as the foundational settlement infrastructure for the future digital financial system, noting that it already hosts the majority of stablecoin supply by market value and is the dominant settlement layer for institutional stablecoin activity, with growing institutional adoption (exemplified by BlackRock's tokenized money market fund launched on Ethereum). • BitDigital was approved by the Ethereum Foundation to purchase ETH directly from the foundation, which management views as a key validation of the company's long-term commitment to the Ethereum ecosystem. A material update on the company's Ethereum treasury strategy is expected in the near term. • As of April 30, 2026, ~60,677 Ethereum remained natively staked, with total Ethereum holdings of ~155,461 and a blended acquisition cost of ~$3,028 per ETH.

• AI Infrastructure Positioning • WhiteFibre is a core long-term strategic holding, with no plans for monetization in 2026. Demand for AI compute continues to outpace available supply, and management expects this capacity constraint to persist, creating unique opportunities BitDigital is positioned to capitalize on, leveraging the company's long track record of on-time, on-budget delivery for HPC projects. • Management believes AI and Ethereum are converging, with scarce compute emerging as a new asset class, and BitDigital is positioned to capitalize on both this convergence and ongoing capacity constraints. Automated agentic AI workflows are expected to rely on Ethereum for programmable value exchange via smart contracts.

• Strategic Acquisition Activity • Management is actively conducting due diligence on at least one potential acquisition aligned with the company's infrastructure and treasury strategy, which is expected to add incremental revenue. The company maintains a disciplined, long-term focus on building an integrated platform at the intersection of Ethereum infrastructure, AI/HPC infrastructure, and recurring cash flow.

Total Q1 2026 revenue was $27.9 million, a 13.7% quarter-over-quarter (QoQ) decrease from $32.3 million in Q4 2025. 1. Crowd services: Revenue of $16.8 million, down 13.1% QoQ, accounting for ~60.2% of total Q1 2026 revenue. 2. Collocation services: Revenue of $4.8 million, up 23.9% QoQ, accounting for ~17.2% of total Q1 2026 revenue. 3. Ethereum staking: Revenue of $2.3 million, down 29.4% QoQ, accounting for ~8.2% of total Q1 2026 revenue. The decline was driven by lower average Ethereum prices and lower natively staked balances. 4. Digital asset mining: Revenue of $3.7 million, down ~33% QoQ, accounting for ~13.3% of total Q1 2026 revenue. The decline reflected lower Bitcoin production and lower average Bitcoin prices during the quarter. Net loss for Q1 2026 was $146.7 million, compared to a net loss of $185.3 million in Q4 2025, with results impacted by non-cash market adjustments on digital assets. As of March 31, 2026: cash and cash equivalents totaled $79.5 million, total digital assets were valued at $295 million, and the company held 155,444.41 Ethereum with a market value of $327 million and an average acquisition price of ~$3,045 per ETH. BitDigital held ~27 million WhiteFibre shares with a market value of ~$322.1 million as of quarter-end.

Management did not provide explicit quantitative guidance for full-year 2026 financial performance. Key forward-looking directional statements include: • Ongoing capacity constraints in AI compute are expected to persist through the near term, creating sustained growth opportunities for the company's AI infrastructure exposure. • A material update on the company's Ethereum treasury strategy will be delivered in the very near term. • The Clarity Act, which recently advanced through the U.S. Senate Banking Committee, if passed, is expected to bring regulatory clarity that supports increased institutional participation in Ethereum and the broader digital asset ecosystem, driving further development of Ethereum-compatible financial infrastructure. • Management expects the strategic intersection of AI and Ethereum to strengthen over the next two years, and the company will continue deepening its focus on this theme.

Forward-looking statements are explicitly noted to be subject to risks and uncertainties that could cause actual results to differ materially from expectations; a full discussion of risks is referenced in the company's recently filed Form 10-Q and other SEC filings. Key risks referenced or implied during the call include: • Volatility in Ethereum and Bitcoin prices directly impacts reported revenue, the market value of the company's digital asset holdings, and overall profitability, with non-cash market adjustments driving net losses in the reported quarter. • Compressed valuations for crypto-sector businesses create acquisition opportunities but also carry downside risk if target businesses underperform or market conditions deteriorate further. • New privacy-focused/enterprise blockchains could potentially compete for institutional activity, though management views network effects as a significant barrier to widespread displacement of Ethereum.

Q: Nick Giles with B Rally Securities asked how BitDigital will approach strategic acquisitions while the stock trades at a discount to MNAV, what target size the company is looking for, and how many acquisitions management is comfortable completing. / A: Management noted that compressed valuations across the crypto sector make this a favorable time to acquire aligned businesses, as the company avoids buying into frothy markets. Potential targets include trading/market-making firms, Ethereum adjacent infrastructure companies, or firms active in the agentic AI economy, all aligned with BitDigital's core strategy. Management began the acquisition search earlier this year, has spoken to multiple candidates, and is open to completing one or more acquisitions when the right opportunity is found. A follow-up question confirmed that BitDigital expects to use existing balance sheet cash for acquisitions, rather than issuing equity while the stock trades at a discount to NAV, which management endorsed.

Q: A question on behalf of George Sutton asked whether BitDigital still targets maximum leverage equal to 20% of Ethereum balances for capital raising, whether that policy has flexibility, and what financing structures the company prefers. / A: CFO Eric Huang confirmed that the 20% leverage cap relative to Ethereum holdings remains the core decision-making metric for new debt financing like convertible notes. Management noted that equity is also a potential financing tool, though the stock's current discount to NAV makes it less attractive than cash for acquisitions currently.

Q: Brian Dawson with ClearStreet asked what BitDigital's business will look like in two years, as the company continues its strategic evolution. / A: CEO Sam Tabar responded that the company will remain deeply focused on the growing intersection of AI and Ethereum, which management expects to strengthen significantly over the next two years. The company will continue expanding its position around the trend of agentic AI, where management sees a natural fit for value exchange between automated AI agents on the Ethereum network.