NRx Pharmaceuticals, Inc. Q1 FY2026 earnings call

• Strategic Transition & Business Structure

• BitDigital is continuing its strategic asset transition, with current operations centered on three core verticals: Ethereum treasury and staking, AI infrastructure via WhiteFiber, and durable cash flow generation through disciplined capital allocation. The company views these verticals as complementary, and is shifting capital away from legacy Bitcoin mining (no longer a strategic growth priority) toward Ethereum and infrastructure opportunities.
• BitDigital held ~27 million WhiteFiber shares with a market value of ~$322.1 million as of end-Q1 2026. WhiteFiber is a core long-term strategic holding, with no plans for monetization in 2026.
• As of end-Q1 2026, BitDigital held ~155,444 Ethereum, with a market value of ~$327 million at a closing price of $2,104 per ETH; the average acquisition price across all holdings was ~$3,045. As of April 30 2026, ~60,677 Ethereum remained natively staked, with total holdings reaching ~155,461 ETH at a blended acquisition cost of ~$3,028 per ETH.
• BitDigital was approved by the Ethereum Foundation to purchase ETH directly from the foundation, which management views as an important validation of its long-term commitment to the Ethereum ecosystem. A material update on the Ethereum treasury strategy is expected in the near term.

• Strategic Outlook on Market Trends

• Management believes Ethereum will become the core settlement infrastructure for the future digital financial system. Ethereum already hosts the majority of stablecoin supply by market value, supports growing institutional activity (including BlackRock's tokenized money market fund), and enables innovation in areas such as zero-knowledge payments. Management expects all valuable assets to eventually be tokenized, and notes that automated agentic AI workflows will require a programmable settlement medium that Ethereum provides via smart contracts.
• Management sees increasing convergence between Ethereum and AI, with persistent excess demand for compute and power that has made compute a scarce, valuable emerging asset class. BitDigital's existing exposure to both AI infrastructure and the Ethereum ecosystem positions it to capitalize on this trend.

• Balance Sheet & Capital Allocation

• As of March 31 2026, cash and cash equivalents totaled $79.5 million, down from $118.4 million at the end of 2025. Total digital assets were valued at $295 million, down from $415.7 million at end-2025, with the decline driven by lower Ethereum prices rather than reduced holdings. Convertible notes increased to $334 million, driven by issuance from consolidated WhiteFiber.
• Management's core goals are to maintain balance sheet flexibility, allocate capital efficiently, and compound long-term shareholder value.

Total Q1 2026 revenue was $27.9 million, a 13.7% quarter-over-quarter (QoQ) decrease from Q4 2025's $32.3 million. 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 stemmed from lower average Ethereum prices and lower natively staked balances. 4. Digital asset mining: Revenue of $3.7 million, down just under 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, an improvement from Q4 2025's $185.3 million net loss, with results impacted by non-cash market adjustments on digital assets.

No specific quantitative financial guidance was provided for full-year 2026. Key forward-looking statements include:

• The ongoing imbalance between compute supply and demand is expected to persist, creating ongoing strategic opportunities for BitDigital's AI infrastructure holdings.
• The Clarity Act, which advanced through the U.S. Senate Banking Committee during Q1, if passed, would provide clearer regulatory and market structure that supports increased institutional participation in Ethereum and the broader digital asset ecosystem.
• Management expects to announce a material update to its Ethereum treasury strategy in the near term, and plans to share additional updates in future quarterly calls as strategic activity progresses.

Management noted that all forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from expectations. For a full detailed discussion of risks, the company refers investors to its SEC filings, including the Form 10-Q filed on the day of the earnings call. Key implied risks from the call include: volatility in digital asset prices that impacts the market value of holdings and reported revenue, compressed company valuations in the crypto sector that may limit financing options, and uncertainty around regulatory approval for digital asset legislation that could impact sector growth.

Q: Given BitDigital trades at a discount to modified net asset value (MNAV), what valuation conditions would trigger strategic acquisitions, what size targets is the company considering, and how many acquisitions would management be comfortable with?

A: Compressed valuations across the crypto sector make this a favorable time to pursue acquisitions, as the company prefers to buy in bear/mixed markets rather than frothy conditions. BitDigital's balance sheet is well-positioned to acquire strategically aligned targets, which could include trading/market-making firms, Ethereum adjacent infrastructure companies, or agentic economy companies that align with the AI-Ethereum intersection. Management has been evaluating candidates since the start of 2025 and could pursue one or more acquisitions.

Q: With the company trading at a discount to NAV, would you use cash on the balance sheet for acquisitions rather than your own equity as currency?

A: This summary of management's thinking is accurate, and the CFO confirmed agreement with this approach.

Q: What is BitDigital's stance on the 20% leverage cap relative to Ethereum balances for capital raising, is the 20% target still in place, and is unsecured debt still the preferred financing route?

A: The 20% leverage ratio remains the key metric for financing decisions, whether for convertible debt or other debt structures. While equity is also a possible financing tool, the company's current discount to MNAV makes cash the preferred option for currently targeted acquisitions.

Q: What do you expect BitDigital's business model to look like in two years?

A: Management expects to continue deepening its focus on the intersection of Ethereum and AI, which it sees as a long-term growing theme. The company expects increasing demand for Ethereum as a settlement layer for agentic AI interactions between automated counterparties, and will continue building out its positioning in this space.