Bit Digital Holds 122,187 ETH (~US$506M) with 81.8% Staked, Yields 3.37% Annual Return

Key Highlights

• As of September 30, 2025, Bit Digital, Inc. (NASDAQ: BTBT) held 122,187 ETH, valued at approximately US$506.6 million.
• The company had ~99,936 ETH staked, representing 81.8% of its holdings.
• In September, staking rewards totaled 291 ETH, which implies an annualized yield of ~3.37%.
• Bit Digital also announced it had selected Figment as its primary staking provider to help manage and optimize its ETH staking operations.

Details & Context

Bit Digital’s September report lays out its Ethereum treasury and staking metrics, showing both accumulation and yield generation as part of a broader strategic pivot toward Ethereum-based treasury management.

• The valuation of ETH holdings (US$506.6M) corresponds to the market price of ETH at the reporting date.
• Staking 81.8% of its ETH holdings positions Bit Digital to maximize yield, while likely keeping a buffer of liquid ETH for operations or market movement.
• The 291 ETH reward in a single month, when annualized, results in ~3.37% return — a yield consistent with what many institutional staking operations aim for, balancing risk, validator uptime, and protocol conditions.
• The partnership with Figment suggests Bit Digital is outsourcing or leveraging professional staking infrastructure, possibly to improve reliability, validator performance, slashing mitigation, and risk management.

This report builds on Bit Digital’s earlier moves toward becoming a more Ethereum-centric treasury and staking company. In June 2025, the firm formally announced its strategy to transition away from Bitcoin holdings and mining operations, focusing instead on ETH accumulation and staking operations.

Implications & Risks

Implications

1. Revenue & Yield Exposure
   With a large portion of its ETH holdings staked, Bit Digital’s revenue from staking rewards becomes a recurring yield component, potentially smoothing results compared to pure price exposure.
2. Asset Concentration & Volatility
   The company’s balance sheet is heavily exposed to ETH’s price swings. A sharp decline in ETH could materially hurt the valuation of its treasury.
3. Operational & Validator Risks
   Relying on staking provider infrastructure entails risks: validator downtime, slashing, misconfiguration, or provider reliability could impact yield and capital.
4. Market Perception & Investor Appeal
   This level of transparency and public staking metrics can appeal to crypto-native and institutional investors seeking yield plus upside exposure, differentiating Bit Digital from other publicly traded firms.

Risks & Caveats

• Staking yield variability: The 3.37% yield is based on current protocol rates, network conditions, and validator performance. These can shift over time.
• Liquidity constraints: Since 81.8% of ETH is staked, a sudden need for liquidity may be constrained by unbonding periods or protocol limits.
• Regulatory or protocol changes: Amendments to staking rules, validator protocols, or network upgrades could influence rewards or staking conditions.
• Execution risk in strategy transition: As the company shifts resources from its prior operations, execution consistency and capital management remain critical.

What to Watch Going Forward

• Monthly staking & treasury metrics: Monitoring future reports to see if the company increases ETH holdings or adjusts staking ratios.
• ETH price dynamics: Since the valuation is tied to ETH market price, broad crypto sentiment and macro factors will influence Bit Digital’s net asset value.
• Partnership & service performance: How well Figment or any staking provider maintains uptime, minimizes slashing, and handles validator operations.
• Convertible offerings & capital raises: The company may issue debt or equity to further expand its ETH treasury (some announcements already point that direction).
• SEC / regulatory disclosures: As a public company, Bit Digital must maintain transparency, address risk disclosures, and manage investor expectations in a volatile crypto environment.

Bottom Line

Bit Digital now holds 122,187 ETH (worth ~US$506.6 million) as of Sept 30, 2025, with 81.8% of that staked generating 291 ETH in monthly rewards (annualized to ~3.37%). This marks a meaningful step in its evolution from a diversified crypto firm into a more specialized Ethereum treasury and staking company, leveraging infrastructure partnerships like Figment. The strategy offers yield and upside exposure, but also concentrates risk and execution demands.

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