Hello, and welcome to the BIT Digital First Quarter 2026 Earnings Conference Call. We'll begin shortly. During the call, all participant lines will be in listen-only mode. Following management's remarks, we'll open the line for questions. If you would like to ask the question at that time, please press star 1 on your telephone keypad. As a reminder, today's call is being recorded. I'll now turn the call over to your host, Daniel Kennedy, Head of Investor Relations at BitDigital. Daniel, please go ahead.

Thank you, and welcome everyone to BitDigital's first quarter 2026 earnings call. Joining me today are Sam Tabar, our Chief Executive Officer, and Eric Huang, our Chief Financial Officer. I'd like to remind everyone that certain statements made during today's call may be forward-looking. These statements are subject to risks and uncertainties that could cause results to For a discussion of these risks, please refer to our SEC filings, including our Form 10-Q filed today. Throughout the call, we may also refer to non-GAAP financial measures. Reconciliations to the most direct comparable GAAP measures can be found in our earnings materials available on our website. Unless otherwise indicated, figures discussed during these remarks are rounded for readability. Following our prepared remarks, we will open the call for questions. With that, I'll turn the call over to Sam. Sam?

Thank you, Daniel. And thank you everyone for joining us. Before I begin, I would like to extend a hand of welcome to our new Head of Investor Relations, Daniel Kennedy. He was formerly a board member, advisor, and director to publicly listed companies across the digital asset, crypto, fintech, and AI infrastructure sectors. Welcome aboard, Daniel, and we look forward to your abilities to share the BitDigital story and trajectory to our shareholders. BitDigital continued advancing its strategic asset transition during the first quarter. Our business today is centered around three verticals. Ethereum treasury and staking, AI infrastructure through White Fiber, and building durable cash flow through disciplined capital allocation. We believe these businesses complement each other. Ethereum provides long-term treasury exposure and staking yields. White Fiber provides exposure to AI infrastructure and compute demand. Over time, we expect additional operating businesses to support recurring revenue generation across the platform, starting with Ethereum. We continue viewing Ethereum as foundational infrastructure for digital assets and on-chain financial activity. Our approach remains disciplined. We are focused on increasing ETH per share over time while maintaining balance sheet flexibility and capital efficiency. Turning to our white fiber holding, white fiber remains a core strategic asset for BitDigital and provides critical exposure to AI infrastructure where demand for compute continues exceeding available supply. We expect these constraints to persist, presenting opportunities which we believe we are uniquely positioned to capitalize on. We continue viewing White Fiber as a long-term holding and do not intend to monetize the position in 2026. Our company has a long history of execution in HPC, delivering projects on time and non-budget to customers and partners. Importantly, BitDigital continues to maintain a significant ownership position in White Fiber. The company held approximately 27 million white fiber shares with a market value of approximately 322.1 million as of the end of March, 2026. Turning briefly to mining. We continued reducing exposure to Bitcoin mining during the quarter. Mining remains cash flow generative, but it is no longer a strategic growth priority. Capital will continue shifting towards Ethereum and infrastructure-related opportunities, turning to the convergence and the constraint. We believe AI and Ethereum are converging. We are uniquely positioned through our exposure to AI infrastructure, the Ethereum ecosystem, and the strategic acquisitions. At the same time, One, demand for compute and power continues to exceed available supply. We believe compute itself is becoming sufficiently scarce and valuable to emerge as a new asset class. We are strategically positioned to capitalize on both the convergence and the constraint. Finally, we will continue evaluating opportunities to expand recurring cash flow generation across our strategic asset platform. We remain disciplined in our approach and focused on long-term value creation rather than transaction volume. I'll now turn the call over to Eric.

Thank you, Sam. Our first quarter of 2016 results reflect the continued positioning of the business toward infrastructure, staking, and treasury operations. Total revenue for Q1 was $27.9 million compared to $32.3 million in Q4 2025. This represents a decrease of 13.7% border over quota. Cloud services revenue was $16.8 million down 13.1% over Q. Co-location services revenue was $4.8 million up around 23.9% quarter over a quarter. Staking revenue, Ethereum staking revenue was of $2.3 million down roughly 29.4% quarter over a quarter. The decline reflected lower average Ethereum prices and lower natively staked balances. digital asset mining revenue was 3.7 million dollars down just under 33 percent quarter over quarter reflecting lower bitcoin production and lower average bitcoin prices during the As of March 31st the company held approximately 155,444.41 Ethereum. As of April 30th, approximately $60,677 Ethereum remained natively staked. Based on closing Ethereum price of around $2,104 per Ethereum on March 31st, the market value of the company's Ethereum holding was $327 million. The company's average Ethereum acquisition price for all holdings was approximately $3,045 as of 31st, 2026. Revenue mix continued shifting away from mining and towards Ethereum staking, cloud business and colocation operations. We believe the transition continued creating a more durable and scalable operation model centered around infrastructure staking and treasury management activities with lower dependency on legacy mining operations. Net loss was $146.7 million in Q1-2026 compared to $185.3 million in Q4-2025. Results continue to be impacted by non-cash market adjustments on digital assets. Turning to the balance sheet, cash and cash equivalents were $79.5 million as of March 31st compared to $118.4 million as December 31st, 2025. Digital assets totals $295 million and quarter end compared to a $415.7 million as of December 31st last year. The decline primarily reflected a lower Ethereum price and quarter end rather than reductions in holdings. Ethereum price is roughly $2,300 as a writing and has traded in the range between roughly $1,800 and $2,400 since early February. Convertible notes increased to $334 million, with increase driven by the insurance of the notes by White Fiber, which are consolidated within our financial statements. As of April 30th, approximately 60,677, Ethereum remained natively staked. Total Ethereum holdings were approximately 155,461 Ethereum with a blended acquisition cost basis of around $3,028 per Ethereum. Overall, our financial profile continues evolving towards infrastructure staking and treasury management with reduced contribution from legacy Bitcoin mining operations. I will turn the call back to Stan.

Thank you, Eric. BitDigital has become accustomed to being early and making bold calls. When you make calls early, criticism usually comes before consensus. We believe Ethereum will become the core settlement infrastructure for the future digital digital financial system. We believe we are simply early again. Stablecoins, tokenized assets, and on-chain settlement activity are already scaling rapidly on Ethereum-compatible infrastructure. Ethereum hosts the majority of stablecoin supply by market value and remains the dominant settlement layer for institutional stablecoin activity. BlockRock launched its tokenized money market fund on ETH. We believe the broader financial system is increasingly moving toward regulatory and institutional integration with digital asset infrastructure. We share the belief that everything of value will become eventually tokenized. Ethereum is also home to innovation in areas like zero-knowledge payments. We do not believe this is temporary. It is only the beginning. Also, automated agentic workflows will increasingly transact without human intervention. The first iteration is likely to involve highly specialized agents interacting with each other to complete complex tasks automatically within predefined constraints. This will require a medium to exchange value. Ethereum offers programmable pragmatism through smart contracts. We also continue expanding our relationships across the Ethereum ecosystem. During the quarter, BitDigital was approved by the Ethereum Foundation to purchase ETH directly from the foundation. We view that as an important validation of our long-term commitment to the ecosystem. More on that in the future. We also continue actively executing on our Ethereum treasury strategy and expect to provide a material update in the very near term. At the same time, we remain active evaluating strategic acquisition opportunities aligned with our infrastructure and treasury strategy. We are currently engaged in ongoing diligence around a potential acquisition target that will contribute revenues to BitDigital. Our focus remains disciplined and long-term. We intend to continue building a business at the crossholds of Ethereum infrastructure, AI and HPC infrastructure, and durable cash flow through strategic acquisitions. We believe Ethereum infrastructure and AI compute infrastructure are not separate strategies. but components of a single integrated platform aligned with the future digital financial system. Yesterday, the Clarity Act advanced through the Senate Banking Committee and now moves forward in the Senate approval process. Passage of the Clarity Act would represent a meaningful step forward for Ethereum and the broader digital asset ecosystem. Clearer market structure and regulatory clarity would support increased institutional participation and continued development of Ethereum-compatible financial infrastructure. The goal remains straightforward, maintain balance sheet flexibility, allocate capital efficiently, and continue compounding long-term shareholder value. With that, I'd like to open the floor for some questions. Are there any analysts on the call?

Thank you. If you would like to ask the question, please signal by pressing star 1 on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, if you would like to ask the question, you press star 1 on your telephone keypad. We'll pause for just a moment to allow everyone an opportunity to signal for questions. We'll now take your first question coming from the line of Nick Giles with B-Riley Securities. Hi Nick. Yeah thanks.

Hey guys. Yeah thanks very much. You know my first question was just along the lines of BTBT is trading at a discounted MNAV and I wanted to get your take just on where you need to see valuation before you might think about strategic acquisitions and then as we think about targets, I mean, what would be the rough size of any target? You know, how many of these types of acquisitions would you be comfortable making? Thanks a lot.

So the crypto industry in general, with respect to the businesses that are built on it, are trading at compressed valuations right now. So it is a good time to consider buying when there is a bear market or a mixed market in the sector. You kind of want to avoid buying when it's frothy. So we think it's an interesting time to buy, and there are a lot of great businesses out There are also a lot of not so great businesses out there, and we're in a good position with our balance sheet to buy a business that would strategically be aligned with the digital and ad revenue. And it has to be, I mean, there are a number of ways we can do this. It could be a trading or a market making firm. It could be an Ethereum adjacent infrastructure company. It could even be a company involved that's participating in the agentic economy because we believe that there is an intersection with Ethereum and AI. So these are the things we've been looking at. We started that process at the beginning of this year. We've spoken to a number of candidates. We continue being on the hunt, and we look forward to hopefully selecting a candidate in an acquisition or maybe more than one acquisition, as you mentioned, it could be more than one. And when we do, we expect it to be, you know, we tend to be early at things, but they tend to work out. So we expect to be early in identifying whatever candidate we decide to acquire and we'll offer our rationale and we'll see how it unleashes in terms of valuation in the future.

Hey Sam, I really appreciate that perspective. So just if I could try and clarify those thoughts, you would be using cash on the balance sheet because with BTBT trading at the discount to NAV, it maybe would make less sense to use your currency. But like you said, if there are good businesses trading at cheap discounts, this is kind of the time to take action. Is that is that a fair summary?

That is a fair summary. Eric, do you agree?

Yeah, absolutely. Okay, very helpful. I'll turn it over, guys, but thanks for the update. Thank you.

Again, if you would like to ask a question, you may press star one on your telephone keypad. We'll now take your next question coming from the line of George Sutton with Craig Allen.

Hi, George.

Hey, guys, lowering on for Georgian today. Thanks for taking the question. So, Sam, I'm curious to get maybe your thoughts on some of the new privacy-focused blockchains that seem to be getting more activity, like a Canton, for example. I guess, how do you view those as competitors to Ethereum over time, kind of competing for activity?

I think it comes down to network effects. It's really difficult to get network effects in any private blockchain. It kind of reminds me of the intranet, if you you recall. You're not, I just think you need network effects in order to make something quite valuable. That's just my opinion. I understand that others may disagree. But I don't, the one that you're referring to, I don't have enough knowledge about it for me to really opine too heavily, to be honest.

Okay. Yep. No, fair enough. Just one other for me kind of thinking towards you know, maybe an environment where capital raising is a bit more, kind of the doors are I think in the past you've talked about trying to keep leverage down to, you know, 20% of Ethereum balances. I'm just curious if that's sort of still how you would approach that or if there's any flexibility to that. And would unsecured debt kind of still be your preferred route? I know other companies have been focused on preferreds, but just want to get a better picture of kind of how that might work. You know, again, in a market environment that's kind of more conducive to it.

Yeah, Eric, do you want to take that?

Yeah, if I may add, yes, leveraging continue to be a, you know, key consideration we're doing in fundraising, especially taking on, let's say, convertible or other, you know, debt form of financing. So we, you know, continue to use, you know, 20% as the metrics for us make a decision, you know, whether we like to put a more leverage on BTPT. Yeah, and in terms of other forms of financing, your equity is another tool as well. But as we all see, the digital as trading at a discount NF, but with acquisition targets, surfing, you know, those were the tools we can use as well.

Helpful. That's all for me.

Your next question will come from the line of Brian Dalson with ClearStreet.

Hi, Brian. Hey, how are you doing? Thanks so much for taking my question.

You know, digital has evolved a lot over the course of the past three years. some very exciting opportunities ahead of you as to discuss strategic acquisitions. As you were thinking about the future, what do you think this business looks like in two years?

The digital, what it'll look like in two years?

Yeah, as you're kind of evolving the business model.

Yeah, I mean, we don't see the intersection of AI and ETH going away anytime soon. We expect to really want to – we just really want to participate in those future trends. And during my earnings call today, I did talk about agentic AI, and I think that there's a natural home for counterparties to interact with each other, and that would be on Ethereum. So we'd like to continue digging in on that theme, and we think that theme will only grow stronger over the next two years.

Yeah, it's been intense. and it appears there are no additional questions at this time I'll turn it back to you for your closing remarks thank you for joining us today we do appreciate your continued interest and support and we look forward to speaking with you again in the next quarter there will be many announcements thank you till then this concludes today's call thank you for your participation you may not disconnect