Bit Digital Inc

NASDAQ:BTBT

Q3-2025 Earnings Call

[Operator]

Hello, and welcome to the Bit Digital Third Quarter 2025 Earnings Conference Call. Good morning, good afternoon and good evening, depending on where you are joining us from. We'll begin shortly. [Operator Instructions]. As a reminder, today's call is being recorded. I'll now turn the call over to your host, Cameron Schnier, Head of Investor Relations at Bit Digital. Please go ahead.

[William Schnier, executive]

Thank you, and welcome to the Bit Digital Third Quarter 2025 Earnings Call. Joining me on the call today are Sam Tabar, our Chief Executive Officer; and Erke Huang, our Chief Financial Officer.

Before we begin, I'd like to remind everyone that certain statements made during today's call may be considered forward-looking. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For a discussion of those risks, please refer to our filings with the SEC, including our Form 10-Q filed today.

Our remarks today may also include non-GAAP financial measures. Reconciliations of those measures to the most directly comparable GAAP figures can be found in our Form 10-Q, which is available on our website. After our prepared remarks, we'll open the call for Q&A. With that, I'll hand the phone over to Sam to discuss our performance. Sam?

[Samir Tabar, executive]

Thank you, Cam, and thank you to everyone for joining us today. The third quarter was our first full period as a focused Ethereum treasury and staking company. Our execution has been consistent with the plan we laid out last year. Since completing the WhiteFiber IPO in August, Bit Digital has become a more streamlined distant.

Our strategy is simple. Grow our Ethereum holdings and state gain activity in a prudent, responsible way that creates long-term value for shareholders. We're not chasing size for its own sake. We're now trying to accumulate as much ETH as possible and at the shortest time. Our goal is to compound value per share through disciplined capital allocation, careful risk management and consistent yield generation.

During the quarter, we continued to expand our ETH position. At quarter end, we held about 122,000 ETH. By the end of October, that number has risen to more than 153,000 ETH with roughly 132,000 actively stated. That is a 5-fold increase since June. That shows that our transition to an ETHcentric platform is well underway.

After quarter end, we completed a $150 million convertible notes offering. We used the proceeds to purchase about 31,000 ETHs. The structure of the offering was designed to be accretive to net asset value per share. The initial conversion price was set at a premium to our estimated NAV at the time. The transaction attracted participation from leading digital asset investors and institutional funds.

This financing reflects our disciplined approach to growth. We are not pursuing rapid expansion for its own sake. Instead, we raised long-term low-cost capital on attractive terms, then we deployed it directly into Ethereum by what we believe is a compelling long-term entry point.

Our staking operations are now beginning to contribute meaningfully to revenue. Staking revenue grew to about $2.9 million in the third quarter, up from $400,000 in the prior quarter. This was driven by a large state balance and a higher realized ETH price.

As our ETH position grows, staking income will become the main engine of our results. We see it developing into a strong recurring source of cash flow. And of course, the real core of this model shows itself when ETH moves meaningfully higher, something we believe is a matter of when, not if.

Turning briefly to mining. We produced 65 Bitcoin in the third quarter down from 83% in the prior quarter as we continue to wind down the business in a measured way. Mining gross margin was about 32%, our highest since the recent halving. This reflects improved fleet efficiency as we phased out older hardware and optimized hosting.

As of the end of September, our active hash rate was about 1.9 exahash with an average efficiency of roughly 22 joules per terahash. We expect fleet efficiencies to improve to around 19 joules per terahash over the next few quarters as less efficient units are retired. We anticipate active cash rate trending towards 1.2 exahash by mid-2026.

Mining remains a small noncore contributor but it continues to help offset corporate overhead while we complete the transition to a fully Ethereum based model. As I like to say, mining can be a pretty good business if you never have to spend money on facing ASICs.

Ethereum fundamentals remain solid. Institutional participation is rising. Validated accounts continue to grow. On-chain activity is strong. We believe the ETH role as the foundation for digital assets, decentralized finance and tokenized real-world assets becomes clearer with time. For investors, Bit Digital offers an actively managed yield-generating way to gain Ethereum exposure. We combine the characteristics of a treasury vehicle, but the benefits of active capital allocation and staking income. Our experience and scale allow us to manage risk and capture opportunities that passive holders cannot.

Finally, discipline is more than a strategy is who we are. This quarter reaffirmed that discipline in our competitive edge. We have operated and evolved through multiple crypto cycles asset of the company. Drawdowns are nothing new to us. That experience helps us stay focused on durability, not momentum. The third quarter was about execution. We streamlined the business. We strengthened our capital base, and we delivered strong results while positioning Bit Digital for the next phase of growth. With that, I will hand it over to Erke to walk through the financials.

[Erke Huang, executive]

Thank you, Sam. As a reminder, our financial results continue to consolidate WhiteFiber under U.S. GAAP due to our majority ownership. Segment breakouts are available in our Form 10-Q. Also note that a portion of our consolidated cash is held at a WhiteFiber level.

Total revenue for the third quarter was $30.5 million compared to $25.7 million in the prior quarter and $22.8 million in the same period last year. Ethereum staking revenue totaled $2.9 million, up over 542% from last year. We earned 644 ETH from native staking and 53 ETH from liquid staking during the quarter. The year-over-year increase in staking revenue reflects both higher sum earned and a higher average immune price.

As of September 30, we held approximately 122,000 ETH of which about 100,000 were fixed, representing roughly 82% of total holdings. That balance has continued to grow meaningfully since quarter end with 153,500 ETHs held and 132,000 ETHs staked as of October 31. While new validators take time to enter the activation queue before generating yield, we expect the full effect of this increase to be reflected in fourth quarter results.

Digital asset mining revenue was $7.4 million compared to $6.6 million in the prior quarter and $10.1 million in the same period last year. We produced 65 Bitcoin during the quarter. Mining margins remained positive despite higher network difficulty and ongoing wind-down of the fleet.

Cost of revenue, excluding depreciation was $2.1 million compared to $13.8 million in the prior quarter and $15.5 million a year ago. Gross profit was $18.3 million, representing a 60% gross margin compared to a 32% in 3Q 2024. General and administrative expenses were $33.1 million compared to $19.7 million in the second quarter and $13.7 million a year earlier. The increase primarily reflects higher share-based compensation and consulting costs related to the WhiteFiber IPO and transition.

Stand-alone Bit Digital G&A expected to be normalized as long nonrecurring costs fall off and once WhiteFiber related costs are fully separated. The several cost structure for Bit Digital has the flexibility to become very lean. Net income for the third quarter was $146.7 million or $0.47 per diluted share compared to a net loss of $38.8 million in the year ago period. Results were driven by higher revenue, improved margins and $168 million gain on digital assets, reflecting appreciation in our Ethereum holdings.

Adjusted EBITDA was $166.8 million compared to $27.8 million in Q2 and negative $19.7 million a year ago. On the balance sheet, we ended the quarter with approximately $179 million in cash and cash equivalents and approximately $24 million in digital assets, consisting almost entirely of this year. Including USDC, total liquidity was approximately $620 million, of which roughly $166 million was held at WhiteFiber level.

We had no debt outstanding as of September 30. After quarter end, we closed a $150 million offering of 4% convertible notes due 2030, providing long-term, low-cost capital to support continued ETH accumulation. Our plan is to keep total leverage below 20% of our ETH holdings. Right now, the figure is above the threshold, meaning we would not increase leverage until the ETH price rises to a comfortable level relative to our notes. That concludes my financial review. I'll now hand the line back to Sam.

[Samir Tabar, executive]

The third quarter was an important step in Bit Digital's evolution. We completed our transformation into an Ethereum focused company. At the same time, we continue to deliver strong financial performance. Our balance sheet is solid. Our capital base has expanded, and our ETH position continues to grow.

Looking ahead, our priorities remain the same. We will allocate capital responsibly. We will continue scaling our staking operations, and we will maintain a strong financial position. We believe that disciplined patience and thoughtful execution will create the most long-term value for our shareholders. We are also in a unique position amongst the digital asset companies.

Bit Digital gives investors exposures to 2 powerful secular trends. First, the growth of Ethereum as the backdrop of decentralized finance; and second, the rise of AI infrastructure through our ownership of WhiteFiber. Our competitive edge is clear. We built infrastructure that earns in all conditions anchored by the 2 most powerful story arcs of our time, ETH if and AI.

WhiteFiber is establishing itself as a credible operator in the high-performance computing market. We continue to see substantial value in that business. Our retained stake represents a meaningful asset for Bit Digital shareholders. We review our ownership as both strategic and long term. The lockup on those shares expires in February 2026.

But let me state firmly. We will not sell any of our WhiteFiber shares during 2026. We are confident that the value of this asset will materially appreciate over time. The recent sector-wide drawdown does not affect a conviction. Clarity accelerates adoption. For the first time, we're seeing regulation begin to finally catch up with technology and Ethereum is winning where it matters most.

Every part of modern financial infrastructure now touches ETH in some way. It has become the foundation for stable coins, decentralized finance and the next wave of on-chain financial innovation. We believe Ethereum and AI, we will define the future of digital infrastructure. This is where credibility and capital needs.

Bit Digital positions itself early for where the talk is going, not where it has been. We are building for participation, not extraction. We own the compute the capital and the credibility to help secure the next generation of networks. As we move forward, we will stay focused on what we can control, disciplined capital deployment, prudent risk management and steady growth in our staking operations. We believe this approach will allow us to compound value per share over time and remain one of the most durable platform. Thank you for joining us today, and thank you for your continued support.

[Operator]

[Operator Instructions]. We'll take our first phone question. We'll go to George Sutton with Craig-Hallum.

[George Sutton, analyst]

Thanks, Sam. So one thing I think would be helpful, the market has gotten a little confused of late with a number of different blockchain alternatives. I would call them Solana, Sweet, Jensen, et cetera. Can you just talk about your ultimate belief in Ethereum relative to the rest of the blockchain options?

[Samir Tabar, executive]

Sure. I mean to begin this, Ethereum has no downtime. And Wall Street is going to back a blockchain that has 0 downtime. So when it comes to security and downtime, there is no second best. Ethereum is certainly the very best stock chain for that use case. Of course, Bitcoin is not possible because it doesn't have smart contracts and of course, the various smart contract technology with Solana and the others, but they have downtime, there's also centralization issues.

It's pretty clear that Wall Street has already made its decision about which blockchain is going to that given those reasons that I mentioned. It also helps from a regulatory perspective. There's been some clarity and there's emerging priority about stablecoins. You're seeing regulatory acts like the CLARITY Act and the GENIUS Act making their way up. And a lot of these regulations provide a lot of clarity about the rules on stablecoins.

And last I looked, I think a little bit more than half of stablecoins are built on Ethereum. And stablecoins is certainly where the pot will be going. And that is built on Ethereum so for all those reasons and much more not to mention there are tens and tens of thousands of developers in Ethereum that is way more than any other blockchain by orders of magnitude. So I mean that can go on, but those are a few reasons why we believe Ethereum is going to be the winner. And frankly, we think that race has already been largely determined but perhaps some bias.

[George Sutton, analyst]

So I appreciate the increase in the staking revenue. Can you give a limit on the percentage that you ultimately stake?

[Samir Tabar, executive]

I mean for us, the more the merrier. I'll let Erke talk about that a little bit.

[Erke Huang, executive]

In terms of the ETH on our balance sheet, we can take the 100% and right now, the reason were about like 85%, it's below 90% is because a portion of that we're working with external managers also being stated and by different like staking strategies that will generate alpha for the company as well. So that's our target to generally just not just native staking but beyond native staking above 3% of the yield. But to answer your question ...

[George Sutton, analyst]

[indiscernible].

[Erke Huang, executive]

I'm sorry. I didn't catch that. Can you repeat that question, please?

[George Sutton, analyst]

Are you using multiple custodians?

[Erke Huang, executive]

Yes, we primarily are using 2 customers. One is Fireblocks and another one is Cactus Custody by Matrixport and we have been using them for the past 4, 5 years, has been working great.

[Operator]

Our next question comes from Brian Dobson with Clear Street.

[Brian Dobson, analyst]

As you look out into the broader market, thinking about your competition, what do you think could set the digital part over the next 2 years?

[Samir Tabar, executive]

I mean we have -- just taking a step back, there's SBET and there's BMNR. These companies. I have a lot of respect for Joe and for Tom. I was just on the panel with them in Singapore at TOKEN2049. We had a very healthy debate with each other. How do you recommend checking out that to debate because that question came up.

And the short version of my answer was that, first of all, we Bit Digital has a successful business. We had Bitcoin Mining, which was profitable. We sold all our Bitcoin. We bought into -- we bought Ethereum with that. We also had a very successful HPC business. So successful that we IPO-ed that business, and we now own 71.5% of a real business.

So this is -- Bit Digital was not -- BTBT was not some sort of failed business that was a shell, that was just picked up and then did a pipe and slapped a bunch of Ethereum on it. That's not what happened. This was a real company. And this company currently still has a very profitable business, including staking Ethereum on the balance sheet.

Also, I mean, except for Joe Lubin, who's the co-founder of Ethereum, I've been involved with Ethereum since 2017. I remember people asking me if I thought Ethereum was basically topping at $300. I kept telling people no. I don't think it's top. And if you ask me today, I will still continue to do the same answer it has not topped even at $3,000.

So I've been involved in this space. So I also built technology on Ethereum. As a co-founder -- the team built something called AirSwap. It was a decentralized exchange. We actually sold that company to Joe Lubin, who is the Co-Founder of Ethereum, who is involved with SBET. So we're intimately involved this Ethereum, not just from a price action perspective, but also from a technological perspective, which is why it reinforces our belief and our conviction why those technology over other technologies.

And lastly, I mean, there are many reasons. But lastly, we're able to do things like unsecured converts. We've been able to financially engineer the purchases of Ethereum unlike any other DAT. There isn't any DAT out there that's done unsecured converts. We are the only one. And we just have that ability and talent and we're structuring a way where we can do that. And that's really important because if it's a secured convert well, when Ethereum goes down, creditors can grab your Ethereum, and that's going to not end well for you.

But in our case, that can't happen because it was an unsecured debt, it's not secured by the underlying assets that we have on our balance sheet. So because of our creative ability with financial engineering, which we were inspired by Michael Saylor's playbook and this was a successful company, continues to be a successful company and owns a controlling ownership stake in WhiteFiber, which is an AI infrastructure company. And because we understand the underlying technology very, very well.

And the only person who knows that better than me is Joe Lubin, we think that we are very differentiated in many different ways. So we don't think frankly being the largest is the marker successive how you do it. And we've done it with unsecured converts. We are structured in a way that positions us to have exposure to digital assets and artificial intelligence in a successful company. And so those -- for those reasons and more, that's how we're differentiated versus as SBET and BMNR.

[Brian Dobson, analyst]

Great. And then just as -- just as a quick follow-up, the converts and preferred market or rather demand for converts and preferred has been pretty robust over the past few months. As you're looking forward, do you have a preferred way of raising capital?

[Samir Tabar, executive]

We love these unsecured converts, but I'll let Erke, our CFO, talk more about that.

[Erke Huang, executive]

Yes. I mean, convertible is always on the table, but we do monitor our leverage very closely, and we don't want to overleverage the company and we had to set up an ATM program for $2.5 billion, but we only use it when we see in the market makes sense or the NAV makes sense. We're very conservative and combined. I think that's our way of adding additional Ethereum accumulation treasury.

[Operator]

We'll next go to Kevin Dede with H.C Wainwright.

[Kevin Dede, analyst]

Erke, I guess first question is, I know you mentioned 1.2 exahash midyear next year, Sam. But I'm looking at the cash price at $0.04 now, and I'm wondering if that may have reset your calculus a little bit. And maybe you could give us an idea where you think it could be at the end of the year next year?

[Samir Tabar, executive]

I'll give that to you, Cam and Erke.

[William Schnier, executive]

I mean likely in that range, I think it's just a function of sort of a hosting portfolio pruning over time as contracts roll off and then optimizing the newer machines. I mean there might be space to increase it marginally just based on what's available in the venture term, 1-month extension here or there if those machines make sense, but I mean it is a business generally that is sunsetting and like we've never had a lot of conviction historically in being able to model mining economics a year out.

So I think we'll just evaluate that as it comes. But as it stands, it's going to be a business that methodically winds down. And as older machines are retired, efficiency should improve and should enhance the overall margin profile of that business, all else equal with the ad price.

[Kevin Dede, analyst]

I know that you're working with fire blocks, obviously, another custodian, but I was wondering if you might offer your thinking on running your own validator nodes? And I guess more broadly, how you expect to squeeze more yield out of the Ethereum network?

[Erke Huang, executive]

We work with FitMint for our native staking, and we have been very happy with the service and security as well. We take this very seriously as we grow digital asset base. It's in the $100 million range and not too far from $1 billion of digital assets under management. Another strategy we have is we'll be engaging with external managers for strategies that would generate additional yield beyond native staking but again, we're very cautious about the risks associated with external partners as well. So we take a very measured way. But yes, we're trying to generate additional yield alpha from the market as well on top of the 3% native staking that's bringing us.

[Kevin Dede, analyst]

Erke, is there -- I mean is there any thinking on internally about perhaps running your own validator nodes and taking FitMint out of the equation?

[Erke Huang, executive]

I think as on now, we're pretty happy with working with FitMint. But I would say when the operation becomes meaningful enough, we might consider but at this point, we're happy with working with the external service provider.

[Kevin Dede, analyst]

Can you just sort of walk me through your $2.9 million staking revenue number? How do you -- how do you get that? I mean I saw how much Ethereum you generated. Is that just sort of the end of the quarter number multiplied by the Ethereum price? Or is it done on some sort of average basis?

[Erke Huang, executive]

It's based on, I think, daily basis for revenue.

[Kevin Dede, analyst]

Okay. Sort of a higher-level question. Given on the Ethereum network because I'm still trying to get used to it, the complexion of the business has changed the network has changed a lot, right, with some very large companies acquiring large amounts of Ethereum and you named abitmine and SharpLink and ETHZilla, The Ether Machine.

And I'm wondering how you might think about what happens to inflation of Ethereum tokens itself. I mean I know after the merge, it was sort of -- the network was deflationary. And I think inflation is pretty slight, less than 1% most recently. But I'm wondering if you think these treasury companies change that inflation pattern.

[Erke Huang, executive]

I'm not sure if the treasury companies would change the inflation because the inflation is more driven by the issuance of Ethereum from the blockchain itself and the activity is unchanged. So the treasury companies would -- how it accumulates and stake ETH that would -- I think that would average a lower staking yield. But at this point, the staking yield is pretty stable. So it's not making a very material impact for the overall like inflation discussion of Ethereum.

[Kevin Dede, analyst]

Okay. Thanks Erke, I appreciate your color on that. I guess I was sort of thinking that huge amounts of there were coming out of the network, and there isn't more available to handle the daily transaction volume.

[Erke Huang, executive]

No, they're all being staked and all the new bets were like running the valuators. So they're feeling the ecosystem, money being taken out in that regard.

[Operator]

We go to Nick Giles with B. Riley Securities.

[Henry Hearle, analyst]

This is Henry Hearle on for Nick Giles. For my first question, what are your guys' expectations for consolidation in the digital asset treasury space? And how do you guys think about opportunistic M&A?

[Samir Tabar, executive]

It's a good question. We've come across some opportunities ourselves, but we're currently focused on our unique position. And we are very uniquely positioned. We're not just some ordinary playing the little of that. We are -- we have Ethereum on our balance sheet, which we stake the vast majority of, and we own 71.5% of WhiteFiber, which is in the hottest sector, and that will continue.

We see absolutely no drop in demand before the building of the data centers regardless of the drawdown in effect today, regardless of what Jim Cramer, has to say. We actually know that there is incredible demand, and we own 71.5% of that, company that's exposed to that particular demand.

So we're uniquely positioned, and there's just no space I'd rather be in the digital assets and artificial intelligence. And I don't know of any other publicly listed company that has direct exposure to that. So very uniquely positioned. If we were to buy another debt, I'm unsure they'd add value really. I think we'll just continue to stay the course and buy Ethereum. As I mentioned today, and it's very important for everybody to note, we will -- even though our lockup ends in about 3 months for WhiteFiber, we are announcing today that we will not sell that stake throughout next year because our conviction in that company is extremely rock-solid high.

[Henry Hearle, analyst]

Great. That's well noted. And then as a follow-up to a previous question, could you guys provide any more guidance on sticking yields going forward? Like how should we think about opportunities beyond the 3% annually that we're seeing today?

[Samir Tabar, executive]

I'll let -- Erke will answer that question, but I hope that one day, people will dig a little deeper on how people are doing. They're taking amongst the DATs. It would be interesting to see if fees that shouldn't be -- you guys should look at the fees that are being charged in the various service providers that other DATs are using just to make sure that it's in line with the interest of shareholders. I can certainly say that with respect to our very much aligned with the interest of shareholders. From there on, I'll just leave it to Erke to answer your question more directly.

[Erke Huang, executive]

Yes. Happy to. The medium sticking right now provides about 3%. I think we'll continue to provide 3% for medium-term period of time and the managers we are working with, we like to see at least 4% of the yield and that's a go. But we're evaluating those strategies and justify the risk return. And -- but combined, we'd like to have this new boost 10% and the 3% of the -- compared to the benchmark for native staking.

[Operator]

Mike Grondahl, Northland Securities.

[Mike Grondahl, analyst]

Sam let me ask you about WhiteFiber. And what would you say have been the 2 biggest challenges in ramping revenue there?

[Samir Tabar, executive]

Well, look, we're trying to close this deal this week. I wish it was the as easy as signing a lease for an apartment but it's not. There are a lot of moving parts when it comes to a contract that is generationally long and that has this kind of quantum amount to it. So things take a little longer than anticipated. But time is our friend because as time went on, we were able to upgrade the deal on the white fiber side.

So we look very much forward to announcing a deal when it's finally signed. I will not -- I will not discuss like in a time line, except to say it's very soon, but I cannot -- I don't want to quantify it because I don't want to be crucified afterwards if I get it wrong. So let's -- I'm glad that everybody is patient.

But to answer your question, the challenge with respect to WhiteFiber is basically how long it takes and how complicated things are in negotiating deals sort of a certain size, it takes a while. But for those who are patients, people would be likely rewarded.

[Mike Grondahl, analyst]

Got it. And no operational challenges or anything of that nature? Just basically lease complications and signing, it sounds like.

[Samir Tabar, executive]

That's right. That's right. And we have -- we are so blessed with the Amazon acquisition. On the WhiteFiber side, we did -- what I think was a gem of an acquisition of a team called Enovum last year. And one of their strengths is the -- they have a retrofit approach to data centers. So their entire careers they've been doing this for hyperscalers before they did it for us. They would identify facilities and turn them into Tier 3 data centers.

In fact, the latest what they did for WhiteFiber was they identified what was a mattress factory last February. They took control of it. I think early April or late March. And now they turned it into a Tier 3 data center and it's going to start generating revenue now for a very well-known counterparty called [ CRBRUS ]. And they did that on time within budget within 6 months, and they used a retrofit model approach to that, you cannot do that with a greenfield build greenfield builds take about 18 months, sometimes 2 years and a lot of variables that you don't control and build in a greenfield.

But because this team that we acquired has this ability to retrofit existing facilities or turn them into 2 data centers. That's a very special ability that not many people have, and we have that team. And so because now we're looking at North Carolina, which is our flagship facility that used to be one of the largest manufacturing facilities on the Eastern Seaboard and we're turning that into a Tier 3 data center, the construction has already begun.

And now we're just working on finalizing the business development aspect of it. But operationally, we are extremely well seasoned thanks to the talent, the very deep talent and the seasoned experience of our team that we were able to acquire and hire across the past 1.5 years.

[Operator]

And next, we'll go to Pat McCann with NOBLE Capital Markets.

[Patrick McCann, analyst]

On for Joe Gomes today. First question is, with the goal of becoming the largest public ETH treasury, where do you believe you rank today?

[Samir Tabar, executive]

The goal is to be the best. Size is not really the metric. The goal is how you do it. So we were able to financially engineer the purchase of Ethereum in ways that others have not. That's extremely important. Imagine you become the best or rather the biggest to say a secured convert. I'd much rather be #2 purchasing Ethereum with an unsecured convert, then being #1 was in doing that through a secured convert. I'm not saying that's what the #1 guy did, but there are sloppy ways to buy Ethereum and to beat #1 through a sloppy way is not the way to go. And so we've been very, very careful not to do it that way.

And I think that to us is really our north star. How you do it, how you're purchasing Ethereum, how you're positioned being positioned with owning a successful company like WhiteFiber, being positioned by buying Ethereum through unsecured converts, being positioned that way to do it responsibly to us is our goal and not to just buy Ethereum hell or high water and be #1 and then you can get in trouble after a while. So that is not something that is our goal necessarily.

Having said that, we do intend to buy a material amount of Ethereum. We'll do it in a responsible way. We have levers that others do not have. And we look forward to reporting in the medium-term future about these Ethereum purchases that we'll be doing. And as cloud, it's nice to see that Ethereum is down today. People may be selling Ethereum today, but it's those who have diamond hands to get rich and we have a very long-term vision of what Ethereum was.

I've been saying the same thing since 2017, the same thing in 2018, the same thing in 2019 and I'll be saying the same thing in 2025. I'll be saying the same thing next year in 2026. Ethereum will continue to structurally go up. There will be a lot of cyclical gyrations but the way that Bit Digital's going to purchase Ethereum will be responsibly and prudently because we don't want to go up.

[Patrick McCann, analyst]

Got it. Appreciate that. And then the other question, just if you could comment on the G&A expense this quarter. What went into that? And where do you see that going moving forward?

[Samir Tabar, executive]

Yes, there's a lot of one-off G&A expenses because of -- maybe I should be about to Cam and Erke. Go ahead.

[William Schnier, executive]

I mean, G&A does consolidate WhiteFiber and I mean -- from the perspective of consolidation, I would generally refer to comments made on the WhiteFiber earnings call, which would provide a lot of nuance on that side of the business. For Bit Digital, there was similarly, some nonrecurring items, some elevated marketing spend, some that we would view as discretionary that we could pull back.

I think generally, Bit Digital is pretty flexible from cost structure perspective and it can be very lean, and it will become significantly leaner. So like on a forward basis, G&A should be materially lower.

[Samir Tabar, executive]

Yes. Basically, just a lot of one-offs that happened on the G&A level. On a normalized basis, you'll see how the digital cost structure is actually very light and flexible.

[Operator]

And we have no questions over the phone.

[Samir Tabar, executive]

No more questions? Okay. Well, thank you for joining us today. We appreciate your continued interest and support. We look forward to speaking with you again next quarter, and remember about my comments on diamond hands. Thank you, everybody.

[Operator]

This concludes today's call. We thank you for your participation. You may now disconnect.