Bit Digital (BTBT) Stock Slides After Q1 Revenue Miss and Ethereum Headwinds
Bit Digital recorded total revenue of $27.9 million for the quarter, representing a 13.6% sequential decline from the previous quarter‘s $32.3 million. The company attributed this downturn to multiple factors including diminished cloud service revenues, compressed ETH staking returns, and weakened digital asset mining performance. The sole bright spot emerged from colocation operations, which benefited from MTL-3’s full-quarter contribution. The cloud services division produced $16.8 million in revenue, sliding 13.1% quarter-over-quarter. Digital asset mining operations experienced a sharper 32.9% contraction to $3.7 million, reflecting both reduced Bitcoin production volumes and lower cryptocurrency valuations. Colocation services provided a partial offset with a 23.9% increase to $4.8 million in revenue. Overall segment gross profit totaled $15.4 million, with profitability metrics diverging across business units. The cloud services division achieved a gross margin approaching 59.5%, while colocation operations delivered a comparable 59.3% margin. ETH staking operations maintained the highest profitability profile with a gross margin near 94.7%. Ethereum Holdings Create Balance Sheet Pressure Bit Digital maintained a substantial Ethereum position of 155,444.4 ETH at quarter-end on March 31, 2026. Using the closing ETH price of approximately $2,104, the companys holdings carried a market value near $327.0 million. However, the average acquisition cost of roughly $3,045 per ETH