Bit Digital, Inc. (NASDAQ:BTBT) is one of the 7 most volatile stocks under $5 for day trading. Bit Digital (BTBT)’s January Ethereum Treasury Numbers Reflect Both Volatility and Size Risk Bit Digital, Inc. (NASDAQ:BTBT), on February 6, 2026, released January Ethereum treasury numbers, which reflect both volatility and size risk. On January 31, 2026, Bit Digital, Inc. (NASDAQ:BTBT) had 155,239.4 ETH, which was worth around $380.2 million at a closing price of $2,449, compared to an average acquisition co ...

Core Viewpoint - Bit Digital Inc (NASDAQ:BTBT) is shifting its focus from Bitcoin mining to artificial intelligence (AI) computing and Ethereum infrastructure, citing inefficiencies in Bitcoin mining as a capital use [1][2]. Group 1: Company Strategy - The company announced the discontinuation of its Bitcoin mining operations to pursue opportunities in AI and Ethereum [1]. - Bit Digital holds over 150,000 ETH, primarily for crypto staking activities to generate additional cryptocurrencies [2]. - The company maintains a majority ownership stake in AI company WhiteFiber and will not sell any of its shares this year [2]. Group 2: Market Position - Bit Digital's decision to move away from Bitcoin is uncommon among publicly traded cryptocurrency companies, which typically focus solely on Bitcoin [2]. - The company offers cloud services for machine learning and AI, alongside its cryptocurrency mining and staking activities [3].

Core Insights - Bit Digital, Inc. reported its Ethereum treasury and staking metrics for January 2026, highlighting its active participation in Ethereum infrastructure and equity exposure to AI/HPC infrastructure through its majority stake in WhiteFiber [1][2]. Group 1: Ethereum Holdings and Staking - As of January 31, 2026, the company held approximately 155,239.4 ETH, with a market value of about $380.2 million based on a closing ETH price of approximately $2,449 [5]. - The total average acquisition price for the company's ETH holdings was approximately $3,045 [5]. - Approximately 138,266 ETH, or about 89% of total holdings, were staked, generating approximately 344.0 ETH in rewards during the period, which represents an annualized yield of approximately 2.9% [5]. Group 2: Investment in WhiteFiber - The company maintains ownership of approximately 27.0 million shares of WhiteFiber (WYFI), with a market value of approximately $527.6 million as of January 31, 2026 [5]. - On January 28, 2026, Bit Digital reaffirmed its long-term investment in WhiteFiber and confirmed that it will not sell any of its WhiteFiber shares in any secondary offering or other discretionary disposition during 2026 [5].

Summary of Bit Digital Conference Call Company Overview - **Company Name**: Bit Digital - **Ticker**: BTBT - **Exchange**: NASDAQ - **CEO**: Sam Tabar - **Business Model**: Defined as a strategic asset company focusing on owning and operating productive infrastructure rather than passive asset holding [7][10][25] Core Industry Insights - **Strategic Asset Company Definition**: Focuses on capital allocation into productive infrastructure that generates yield, usage, and participation [8][10][25] - **Shift from Bitcoin Mining**: Initially started as a Bitcoin miner but pivoted to Ethereum and AI infrastructure due to challenges in the mining business [10][11][12] - **Ethereum as Economic Infrastructure**: Viewed as a primary programmable settlement layer for decentralized finance, supporting stablecoins and generating yield through staking [16][17][26] Key Financial Metrics - **Ethereum Holdings**: Approximately 155,000 ETH held, with about 90% actively staked yielding around 3%-4% [13][23] - **WhiteFiber Ownership**: Owns approximately 27 million shares of WhiteFiber, representing over 70% ownership, valued at nearly $900 million at year-end 2025, currently around $650 million due to market pressures [13][14][19][23] - **Debt Structure**: No unsecured debt; issued $150 million of unsecured convertible notes in 2025 [23] Strategic Focus Areas - **AI Infrastructure**: Majority equity ownership in WhiteFiber, which develops AI-focused data centers and compute infrastructure [19][20] - **Growth in AI Workloads**: WhiteFiber's infrastructure is positioned to meet the growing demand for AI compute, with plans to expand from 11 MW to over 75 MW by the end of 2026 [20][22] - **Long-term Vision**: Aims to be a leading public Ethereum treasury and a major shareholder in scaled AI infrastructure within five years [32] Market Positioning - **Diversification**: Bit Digital's diversified asset base has helped it perform better than pure ETH peers during market fluctuations [14] - **Valuation Disconnect**: The market assigns a lower implied value to Bit Digital's WhiteFiber stake compared to its public market value, indicating a potential investment opportunity [15][30] Operational Strategy - **Active Participation**: Focus on operational participation in infrastructure rather than passive asset holding, which allows for compounding returns [11][29] - **Capital Allocation**: Decisions to raise capital are based on opportunities to increase shareholder value, with a focus on maximizing long-term value per share [31] Conclusion - **Future Outlook**: Bit Digital is positioned to capitalize on the growing sectors of Ethereum and AI infrastructure, with a strategic focus on operational excellence and long-term compounding [24][32]

Capital allocator to productive digital infrastructure Investor Presentation | February 2026 Strategic Asset Company (SAC) www.bit-digital.com @BitDigital_BTBT 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, and any subsequently filed Quarterly Reports on Form 1 ...

Investment Rating - The report does not explicitly state an investment rating for the industry, but it implies a cautious outlook based on recent market trends and macroeconomic factors [29]. Core Insights - The cryptocurrency market experienced a decline, with a total market capitalization of $2.84 trillion, down 6.0% from the previous week. Bitcoin closed at $84,129, also down 6.0%, while Ethereum closed at $2,702, down 8.5% [10][11]. - The report highlights significant macroeconomic events, including the Federal Reserve's decision to maintain interest rates and the potential impact of political developments on market sentiment [10][12]. - There is a notable decline in Bitcoin mining profitability, with the ratio of Bitcoin price to mining profitability reaching a 14-month low, influenced by extreme weather conditions affecting mining operations [20][21]. Summary by Sections Market Review - The cryptocurrency market saw a total market cap of $2.84 trillion, with Bitcoin and Ethereum prices declining by 6.0% and 8.5%, respectively. The Federal Reserve's interest rate was held steady, impacting market expectations [10][12]. - The overall market sentiment has turned cold, with the Fear and Greed Index indicating a score of 26, reflecting a state of fear among investors [13][14]. Global Policy and Industry News - Tether launched USAT, compliant with U.S. regulations, and plans to increase its gold holdings to 10-15% of its portfolio by 2025 [20][21]. - The report notes that 72% of licensed cryptocurrency exchanges in Indonesia are currently operating at a loss, facing challenges from international competition [23]. - The U.S. Senate Agriculture Committee passed the Clarity Act, which still requires approval from the Senate Banking Committee [23]. Company News - Strategy Company increased its Bitcoin holdings by nearly 3,000 BTC, bringing its total to over 712,000 BTC, with an average purchase price of $76,037 per BTC [24]. - SoFi Technologies reported a revenue exceeding $1 billion for Q4 2025, with a 35% year-over-year increase in membership [25]. - MARA received approval to acquire a 64% stake in Exaion, a data center subsidiary of EDF [24]. Investment Recommendations - The report suggests monitoring companies transitioning to AI data centers and those with significant power reserves, as they may reveal further developments during the earnings season [27].

Core Insights - Bit Digital Inc has made a significant strategic shift in 2025, moving away from bitcoin mining to focus on Ethereum and high-performance computing (HPC) [1][4] - The HPC division has been spun off into a new company called WhiteFiber, in which Bit Digital retains a 70% stake [1][4] - The company has sold all its bitcoin holdings and invested approximately half a billion dollars in Ethereum [4] Strategic Goals - The company is not satisfied with its current share price performance and aims to pursue mergers and acquisitions (M&A) or other strategies to generate proper EBITDA by 2026 [5][6] - The goal is to enable investors to apply earnings multiples rather than solely valuing the company based on net asset value (NAV) [6] Self-Funding and Shareholder Value - Bit Digital has decided not to sell its shares in WhiteFiber despite the lock-up expiration, believing in the future potential of WhiteFiber [7] - The company is exploring business acquisitions or operational strategies to achieve self-funding, as current Ethereum staking yields are insufficient [8] AI Business Development - WhiteFiber, which focuses on AI, has been performing well since its IPO in August last year, with increasing reverse inquiries [9] - The company has a competitive edge in retrofitting facilities into data centers quickly and cost-effectively, recently signing an $865 million contract with Nscale [10]

Core Viewpoint - Bit Digital has decided to separate its AI infrastructure business, now operating as WhiteFiber, to better align with investor expectations and improve access to credit [1][2]. Group 1: Reasons for Separation - The separation was driven by two main factors: alignment with investors and access to financing [2][5]. - High performance computing (HPC) is viewed as an institutional product, while digital assets are seen as more retail-oriented, necessitating different investor bases [3][4]. Group 2: Impact on Financing - After the spinout, WhiteFiber's shareholding became primarily institutional, which has led to a better understanding of the economics of data centers and HPC [4]. - Traditional banks are more willing to finance data center developments when they are not associated with digital assets, leading to expanded financing options for WhiteFiber [5][6]. - The cost of capital for WhiteFiber has decreased since the separation, as it no longer has any digital assets involved [6].

Core Viewpoint - Bit Digital Inc is transitioning from bitcoin mining to Ethereum-based infrastructure and AI compute assets as its main business focus, with 2025 identified as a pivotal year for this transformation [1][2]. Business Strategy - The company is adopting a strategic asset company model, emphasizing the deployment and operation of infrastructure assets rather than passive holding [2]. - Bit Digital has exited bitcoin mining due to its inefficiency compared to yield-generating opportunities, consolidating its digital asset exposure around Ethereum [3][4]. Ethereum Focus - Ethereum is now the primary economic infrastructure for the company, with over 150,000 ETH held, most of which is staked for rewards while ensuring liquidity and custody standards [4]. - The company views Ethereum as programmable financial infrastructure with long-term relevance across various sectors [4]. AI Infrastructure - Bit Digital's AI strategy is centered on its investment in WhiteFiber, which is seen as a long-term strategic asset due to sustained demand for AI compute driven by structural constraints [5][6]. - The company intends to remain a long-term owner of WhiteFiber as it scales, with improvements in utilization noted by the third quarter [6]. Financial Strategy - To support its transformation, Bit Digital completed an unsecured convertible note offering, which allows for capital raising while maintaining balance sheet flexibility [7]. - The company is focused on disciplined capital allocation, prioritizing infrastructure assets for long-term ownership and operation [7]. Future Outlook - Bit Digital plans to transition from transformation to execution in 2026, aiming to strengthen self-funding growth through durable cash flow while maintaining balance sheet flexibility [8]. - Current returns are linked to market performance in Ethereum and WhiteFiber, with plans for differentiated value creation through operational execution and strategic capital deployment [8]. Commitment to WhiteFiber - The company reaffirms its long-term commitment to WhiteFiber, stating it will not sell any shares during 2026, even after the IPO lockup period expires [9][10]. - Bit Digital continues to hold approximately 27 million shares of WhiteFiber and views it as a core strategic holding, emphasizing alignment with other shareholders and confidence in long-term growth [10][12].

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].