Bit Digital Releases Annual Shareholder Letter

Core Viewpoint - Bit Digital has undergone a significant transformation in 2025, focusing on capital markets evolution and exiting non-aligned businesses to concentrate on programmable financial infrastructure through Ethereum and AI automation [1][4][16]. Business Strategy - The company has transitioned from bitcoin mining to a strategic asset company model, emphasizing the deployment and operation of assets rather than merely holding them [2][3]. - The exit from bitcoin mining was driven by a reassessment of capital efficiency, leading to a focus on infrastructure that allows for active participation and yield generation [4][5]. Ethereum as Economic Infrastructure - Ethereum has been central to Bit Digital's strategy since 2022, with a significant focus in 2025, recognizing it as a core strategic asset rather than just a token [6][8]. - By the third quarter, Bit Digital held over 150,000 ETH, with most staked to generate protocol-native rewards while ensuring liquidity and custody standards [7][8]. AI as Intelligence Infrastructure - The company has strengthened its position in AI infrastructure through a majority stake in WhiteFiber, addressing the growing demand for AI-driven compute amid structural constraints in power and data center capacity [10][12]. - Bit Digital views its ownership in WhiteFiber as a core strategic asset, committing to long-term ownership without plans for secondary offerings in 2026 [12][19]. Capital Position and Financing - To support its transformation, Bit Digital completed an unsecured convertible note offering, preserving balance sheet flexibility while raising capital at a premium conversion price [14][15]. - The company maintains a disciplined approach to capital allocation, focusing on long-term infrastructure ownership rather than short-term liquidity [15][20]. Future Outlook - As Bit Digital enters 2026, the focus shifts from transformation to execution, aligning with market trends that reward productive and durable infrastructure [16][17]. - The company aims to generate alpha by moving beyond passive exposure to actively creating differentiated value through operational excellence and strategic capital deployment [20].