Ethereum News Today: As Bit Digital Switches to Ethereum Staking, Q2 Revenue Drops 11.7%
Bit Digital (NASDAQ: BTBT) reported Q2 2025 revenue of $25.7 million, down 11.7% from the same quarter last year and below analyst estimates of $27.47 million. The decline stemmed largely from a steep 58.8% year-over-year drop in digital asset mining revenue, which fell to $6.6 million, as the company scaled back Bitcoin mining in favor of Ethereum staking and treasury operations.
The change is part of a broader realignment under CEO Sam Tabar, positioning Bit Digital as a pure-play Ethereum treasury and staking firm. The company has now accumulated 121,076 ETH, redirecting capital away from Bitcoin mining to build a more sustainable, yield-focused model based on Ethereum’s proof-of-stake network. This pivot makes Bit Digital one of the first Nasdaq-listed companies to fully commit to Ethereum as its core asset.
As a result, the company’s financial profile has shifted, with Ethereum holdings rising and Bitcoin reserves declining. Bit Digital has also raised additional capital to fund the transition, reflecting its confidence in the long-term prospects of staking yields. While Ethereum staking revenue dipped 2.3% in Q2, management remains bullish on its stability and scalability.
Analysts see the move as a way to avoid the high costs and volatility of Bitcoin’s proof-of-work mining, while tapping into Ethereum’s growing institutional adoption. This mirrors a broader industry trend, as crypto firms increasingly explore staking and corporate treasury strategies to diversify revenue streams.
Despite the revenue contraction, Bit Digital delivered an earnings-per-share beat, offering a rare bright spot in the quarter. Management emphasized its long-term vision for consistent returns through Ethereum-based strategies, noting strong investor interest in Ethereum-related products such as ETFs, which have seen significant inflows in recent months.
The pivot also brings regulatory uncertainty, particularly regarding the U.S. Securities and Exchange Commission’s evolving position on staking activities. Compliance and legal considerations will be critical as Bit Digital expands its staking operations.
Overall, Q2 results highlight both the short-term costs and long-term potential of Bit Digital’s transformation. While the revenue drop reflects the challenges of changing business models in a fast-moving crypto market, the company’s Ethereum-focused approach could deliver more predictable returns if staking adoption continues to grow.
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