Bit Digital's Ethereum Holdings Can't Lift Stock Above $1

Bit Digital swung to a third-quarter profit of $28.5 million. Nonetheless, its shares ended Wednesday at $0.79, putting the company's market cap below $290 million even as it holds $439 million in Ethereum (ETH).

With about 360 million shares outstanding, each share corresponds to roughly $1.22 in ETH. Still, the stock fell a further 6% ahead of Thursday's opening bell, according to Yahoo Finance data.

What Explains Bit Digital's Stock Value Below Its Ethereum Holdings?

Of the New York-based firm's profit, $16.3 million came from crypto price swings and one-off items. Revenue declined 11% to $27.1 million.

Bit Digital additionally holds a 59.7% stake in WhiteFiber, an AI data center company listed on Nasdaq, which was valued at $487 million on Sept. 30. But by late October, WhiteFiber shares traded around $10, down from $18.01 at the end of the quarter, according to StockAnalysis data.

Moreover, the Ethereum is not entirely unencumbered. Bit Digital exchanged 73,683 ETH for LsETH, a token that generates staking returns. Subsequently, 64,000 LsETH have been used as loan collateral.

In October 2025, BeInCrypto cautioned that steep discounts to net asset value were driving crypto treasury companies to take on more leverage. Bit Digital also has $150 million in convertible debt outstanding.

Earlier in April, Wall Street analysts held a more positive view. HC Wainwright maintained a $7 price objective, while B. Riley set a $5 target, per MarketBeat data. No more recent targets are listed.

Could Bit Digital Buy Back Its Own Stock?

The notion was floated by CEO Sam Tabar.

The persistent discount to our net asset value makes repurchases an option that deserves serious consideration, but the benefit to shareholders depends on both the price we pay and how we fund them.

Any buyback would require shareholder approval. Financing it might involve selling Ethereum, which Tabar noted would reduce staking revenue. In the latest quarter, Bit Digital sold 1,625 ETH and did not purchase any.

In 2025, FG Nexus offloaded Ethereum to fund buybacks after its own shares plunged 94% over four months.

What If Bit Digital's Stock Remains Under $1?

Bit Digital's shares first dipped below $1 at the close on Oct. 16. Nasdaq issues a warning after 30 consecutive trading days below that threshold, followed by a 180-day grace period. This is not the company's first such situation: it received a similar notification in January 2023 and resolved it within three weeks. On this occasion, the firm has not disclosed if or when it will seek a shareholder vote on a buyback.