Bit Digital (BTBT) Faces $3M Loss After Ill-Timed $20M Ethereum Purchase

Key Takeaways

Table of Contents

On May 11, Bit Digital (BTBT) acquired 8,568 ETH for $20 million at an average cost of $2,334 per coin.
Ethereum’s price has tumbled beneath $2,000, resulting in an unrealized deficit of approximately $3 million on the investment.
This marked the company’s initial Ethereum acquisition since October, coinciding with crypto market highs.
The firm’s total Ethereum holdings now stand at 158,462 ETH, valued at roughly $313 million based on current market rates.
First quarter 2026 revenue reached $27.5 million, surpassing projections, though the company continues operating at a loss with trailing twelve-month negative EBITDA of $144 million.

Bit Digital (BTBT) made a significant $20 million Ethereum acquisition on May 11 — its inaugural ETH purchase since October — and the investment has quickly turned negative.

Bit Digital has purchased 8,568 ETH for $20 million USD, bringing its total holdings to 158,461.75 ETH.
As a Strategic Asset Company, we execute when market conditions align with our thesis, deploying capital with discipline across Ethereum ecosystem strategies, AI… pic.twitter.com/XEi88z3Nv0
— Bit Digital, Inc. NASDAQ:BTBT (@BitDigital_BTBT) May 28, 2026

The New York-headquartered company accumulated 8,568 ETH tokens at an average entry point of $2,334 each. However, Ethereum has subsequently declined to under $2,000, generating an unrealized loss approaching $3 million. This represents a depreciation exceeding 15% within mere weeks.

BTBT shares are currently priced at $2.03, valuing the enterprise at approximately $709 million in market capitalization.

Bit Digital, Inc., BTBT

Chief Executive Sam Tabar explained that the “timing reflects our view that market conditions had reset to a level consistent with our thesis.” Previously in March, he characterized ETH’s downturn as a market reset rather than a fundamental shift, attributing the decline to leverage unwinding instead of core network weakening.

Tabar has identified stablecoin settlements, asset tokenization, and artificial intelligence-driven activity as critical long-term catalysts for Ethereum adoption. His investment thesis now faces an immediate challenge.

Treasury Approach Faces Market Headwinds

This acquisition elevates Bit Digital’s complete Ethereum position to approximately 158,462 tokens, currently valued near $313 million. A segment of these holdings is staked directly on-chain, while additional portions utilize liquid staking protocols to maintain liquidity options.

Most cryptocurrency treasury-focused companies have curtailed accumulation activities in recent months. Declining digital asset valuations and expanding discrepancies between equity valuations and underlying crypto assets have prompted numerous firms to preserve capital or liquidate holdings. Bit Digital took an opposite approach.

The organization transitioned to an Ethereum-centric treasury model last year, abandoning its bitcoin mining operations. It now positions itself as a “Strategic Asset Company” with three primary verticals: ETH accumulation, artificial intelligence and high-performance computing infrastructure via its WhiteFiber (WYFI) subsidiary, and strategic merger and acquisition activity.

The WhiteFiber division provides exposure to the expanding AI infrastructure sector, which has garnered substantial investor attention industry-wide.

Financial Performance: Revenue Exceeds Expectations Despite Continued Losses

Bit Digital disclosed first quarter 2026 revenue of $27.5 million, exceeding analyst consensus estimates of $25.72 million — representing an approximate 6.9% outperformance. Loss per share registered at -$0.04, matching expectations.

Notwithstanding the revenue beat, the organization reports negative EBITDA of $144 million across the trailing twelve-month period. InvestingPro analysis indicated the equity currently trades above its calculated fair value.

Bit Digital has also recently established a $100 million delayed draw term loan arrangement for a WhiteFiber subsidiary. This credit facility includes provisions for expansion to $150 million through mutual consent. B. Riley Securities acquired a portion of these term loans from Bit Digital Capital.

Ethereum was exchanging hands near $1,980 on Wednesday, declining approximately 3.9% during the trading session.