BTBT

Bit Digital is no longer the business its FY2024 numbers describe. The 10-K explicitly confirms a 'strategic transition to become a pure play ETH staking and treasury company' announced in June 2025, with BTC holdings being converted to ETH and bitcoin mining being wound down. Simultaneously, the HPC business was contributed to subsidiary WhiteFiber (Nasdaq: WYFI) on August 6, 2025 in exchange for 27M shares — meaning the cash-flow-generative HPC arm is now a separately listed entity in which BTBT holds only a 'majority equity stake.' What the public BTBT shell becomes is an ETH treasury vehicle plus a stake in a listed sub — a structure where the parent equity often trades at a discount to NAV and where 'earnings' are dominated by ETH price marks rather than operating profit.

The numbers reflect this disarray. FY2025 revenue grew only 5.1% to $114M, but operating income collapsed to -$91.8M (-80.9% margin) from positive territory in FY2024, net income swung from +$28.3M to -$80.3M, and operating cash flow cratered to -$289M against $286M of capex. Funding this came from massive equity issuance: shares outstanding jumped 79.0% YoY to 327M, driving retained earnings to -$179M. The five-year revenue history (96 → 32 → 45 → 108 → 114) shows no durability — this is a commodity-price-driven business, not a compounder. ROE of -11.1% on a balance sheet that doubled in size is exactly the wrong direction.