Bit Digital Releases Annual Shareholder Letter

NEW YORK, Jan. 29, 2026 /PRNewswire/ -- Bit Digital, Inc. (NASDAQ:BTBT) ("Bit Digital" or the "Company") today released its annual shareholder letter to investors. The full letter is available on the Company's investor relations page.

To Our Shareholders,

2025 marked a defining year for Bit Digital. Over the past year, we deliberately reshaped the company around a clear view of how capital markets are evolving. We're in the process of exiting businesses that no longer align with durable value creation. We've concentrated our capital and operations ahead of the curve, building exposure to the two layers along which capital markets are digitizing: programmable financial rails through Ethereum and automation through Al infrastructure.

Today, Bit Digital operations are that of a strategic asset company (SAC), focused on two systems that underpin this shift: economic infrastructure through Ethereum, and intelligence infrastructure through Al compute. As a strategic asset company, we deploy and operate assets rather than simply holding them on a balance sheet.

A Structural Shift in Our Business

As we exit bitcoin mining, we've reallocated capital toward infrastructure with greater flexibility, durability, and long-term relevance. 

Mining was effective in an earlier business strategy, but over time it became a less efficient use of capital relative to opportunities that allow for active participation, yield generation, and operational leverage. Our decision to exit mining reflected this assessment and marked our transition from an extraction-based model to one centered on strategic asset deployment and infrastructure, without changing our conviction in digital assets.

At the same time, we consolidated our digital asset exposure into Ethereum and prioritized our exposure of Al infrastructure through our majority stake in WhiteFiber. These decisions repositioned Bit Digital around infrastructure we can operate, monetize, and compound over time.

Ethereum as Economic Infrastructure

Ethereum first entered our strategy in 2022 and became a central focus in 2025. At a time when most public companies in crypto were still fixated on bitcoin alone, Bit Digital was one of the first to recognize ETH as a core strategic asset. We didn't view Ethereum as just another token to hold, but as programmable financial infrastructure with long-term relevance across payments, compute, and capital markets.

Over the course of the year, we accumulated ETH at a measured cost basis and built operational capabilities around staking and network participation. As of the third quarter, Bit Digital held over 150,000 ETH, the majority of which is staked, generating protocol-native rewards while maintaining liquidity and institutional custody standards.

Ethereum combines liquidity, yield, and infrastructure participation. For Bit Digital, this means our balance sheet is aligned with usage, uptime, and network activity rather than short-term price movements alone.

As Ethereum matures, value accrual is increasingly driven by participation, fees, and coordination rather than speculation. This activity often develops ahead of price action, but is visible in enchain deployment, infrastructure usage, and institutional build-out.

Our strategy reflects this reality by actively participating in Ethereum's infrastructure and treating ETH as productive economic infrastructure.

AI as Intelligence Infrastructure

In parallel, we deepened our position in Al infrastructure through WhiteFiber, where Bit Digital holds a majority ownership stake.

Demand for Al-driven compute continues to grow across enterprise and industrial use cases. At the same time, power availability, data center capacity, and build timelines remain constrained. This imbalance is structural, not cyclical.

Through its investment in WhiteFiber, Bit Digital is economically exposed to physical infrastructure that delivers reliable compute capacity to meet this demand. WhiteFiber represents our long-term exposure to intelligence infrastructure, and we view this ownership as a core strategic asset within our long-term capital deployment strategy, rather than a financial asset to be traded.

Consistent with this view, Bit Digital will not sell any of its WhiteFiber shares in 2026 in any secondary offering or other discretionary disposition and intends to remain a long-term owner as the business continues to scale.

By the third quarter, improvements in utilization and operational traction reflected the early impact of this expansion.

Capital Position and Financing

To support this transformation, we completed an unsecured convertible note offering during the year, which was one of the first instances of this type of innovative financing in our niche. The structure preserved balance sheet flexibility while allowing us to raise capital at a conversion price set at a premium to our underlying asset value.

Our approach to capital allocation remains disciplined. We focus on deploying capital into infrastructure we intend to own and operate over long time horizons, rather than pursuing short-term liquidity or scale for its own sake.

Looking Ahead

As we enter 2026, Bit Digital moves from transformation to execution. Capital markets are increasingly rewarding infrastructure that is productive, durable, and actively deployed. Our exposure to Ethereum and Al is aligned with that shift, providing participation in the systems that enable settlement, coordination, and automation as they continue to scale.

This positioning is intentional. We believe it places Bit Digital ahead of where market structures are moving, in line with our broader strategy of staying ahead of the curve by investing in foundational infrastructure early, from WhiteFiber to ETH, rather than chasing short-term or reactive themes.

Today, Bit Digital is a more focused and resilient company than it was a year ago, operating within a strategic asset company mindset across both Ethereum and Al infrastructure. We are building a business designed around productive infrastructure, operational discipline, and long­term compounding.

As we move into the next phase, our focus is on strengthening the Company's ability to self-fund growth through durable cash flow, enabling continued investment across our portfolio while maintaining balance sheet flexibility and driving long-term compounding.

While our current positioning provides exposure to the structural growth of Ethereum and AI infrastructure, we recognize that our returns today are largely tied to market beta—how ETH performs and how WhiteFiber performs. Our strategy going forward is to enable alpha generation for Bit Digital. This means moving beyond passive exposure to actively creating differentiated value through operational excellence, strategic capital deployment, and selective opportunities that compound returns independent of broader market movements.

We appreciate the continued support of our shareholders and remain committed to disciplined execution in the year ahead.

Sincerely,

Sam Tabar

Chief Executive Officer

Bit Digital, Inc.

About Bit Digital

Bit Digital (NASDAQ:BTBT) is a Strategic Asset Company (SAC) focused on active participation in Ethereum infrastructure and controlling equity exposure to AI/HPC infrastructure through its majority ownership stake in WhiteFiber (NASDAQ:WYFI). The Company purchases and stakes ETH to generate protocol-native yield and participates directly in the Ethereum network. Bit Digital allocates capital with a focus on long-duration, foundational infrastructure and disciplined balance sheet management. For additional information, please contact [email protected] or follow us on LinkedIn or X.

Investor Notice

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 (Annual Report) and any subsequently filed Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See "Safe Harbor Statement" below.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein, are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involving known and unknown risks and uncertainties. Forward-looking statements in this press release include statements regarding WYFI shares held by BTBT and WYFI's long-term growth. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

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SOURCE Bit Digital, Inc.