Bit Digital, Inc.

The conference will begin shortly.

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. During the call, all participants' line will be open in listen-only mode. Following the management's remarks, we'll open the line for questions. If you'd like to ask a 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, Cameron Shiner, Head of Investor Relations at BitDigital. Please go ahead.

Thank you, and welcome to the BitDigital third quarter 2025 earnings call. Joining me on the call today are Sam Tabar, our Chief Executive Officer, and Eric Wong, 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 your performance. Sam?

Sam Rothenberg- 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 white fiber IPO in August, Debt Digital has become a more streamlined business. Our strategy is simple, grow our Ethereum holdings and staking activity in a prudent, responsible way that creates long-term value for shareholders. We're not chasing size for its own sake. We're not trying to accumulate as much ETH as possible in 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 had risen to more than 153,000 ETH, with roughly 132,000 actively staked. That is a five-fold increase since June.

It shows that our transition to an ETH-centric platform is well underway.

After quarter end, we completed a $150 million convertible notes offering. We used the proceeds to purchase about 31,000 ETH. 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 MNAV 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 at 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 stake 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 power 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 efficiency to improve to around 19 joules per terahash over the next few quarters as less efficient units are retired. We anticipate active hash rate trending towards 1.2 exahash by mid-2026. Mining remains a small, non-core 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 replacing ASICs. Ethereum's fundamentals remain solid.

Institutional participation is rising. Validated accounts continue to grow. On-chain activity is strong. We believe ETH's role as the foundation for digital assets, decentralized finance, and tokenized real-world assets becomes clearer with time. For investors, BitDigital offers an actively managed, yield-generating way to gain Ethereum exposure. We combine the characteristics of a treasury vehicle with 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. It is who we are. This quarter reaffirmed that discipline in our competitive edge. We have operated and evolved through multiple crypto cycles as a public 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 BitDigital for the next phase of growth. With that,

I will hand it over to Eric to walk through the financials.

Thank you, Sam. As a reminder, our financial results continue to consolidate Y-Fiber 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 the Y-Fiber level. Total revenue for third quarter was $30.5 million compared to $25.7 million in the prior quarter and a $22.8 million in the same period last year. If they're mistaken, 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 Ethereum earned and a higher average Ethereum price. As of September 30th, we held approximately 122,000 ETH, of which about 100,000 ETH were staked, representing roughly 82% of total holdings. That balance has continued to grow meaningfully since quarter end, with 153,500 ETH held and 132,000 ETH staked as of October 31st. 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 the 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 3Q2024. General and administrative expenses were $33.1 million compared to a $19.7 million in the second quarter and $13.7 million a year earlier. The increased primary reflects higher share-based compensation and consulting costs related to the Y-fiber IPO and transition. Standalone bid-digital GMA expected to be normalized as non-recurring costs fall off and once Y-fiber related costs are fully separated. The standard cost structure for BitDigital has the flexibility to become very lean. Net income for the third quarter was $146.7 million, or 47 cents 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 $424 million in digital assets, consisting almost entirely of Ethereum. Including USDC, total liquidity was approximately $620 million, of which roughly $166 million was held at the white fiber level. We had no debt outstanding as of September 30th. 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 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. Thank you. The third quarter was an important step in BitDigital'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 discipline, patience, and thoughtful execution will create the most long-term value for our shareholders. We're also in a unique position amongst digital asset companies. BitDigital gives investors exposures to two 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 two most powerful story arcs of our time, ETH 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 view 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 Wi-Fi 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 our 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 will define the future of digital infrastructure. This is where credibility and capital meet. But digital positions itself early for where the puck 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 platforms in the digital asset space.

Thank you for joining us today, and thank you for your continued support. Operator, please open the line for questions.

Thank you. If you are dialed in via the telephone and would like to ask a 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. A voice prompt on your phone line will indicate when your line is open. Please state your name and company before posing your question. Again, press star 1 to ask a question. If you are in the event via the web interface and would like to ask a question, simply type your question in the ask a question box and click send. We'll take our first phone question. We'll go to George Sutton with Greg Hallam. Please go ahead.

Thanks. Hey, 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, SWE, Ganton, et cetera. Can you just talk about your ultimate belief in Ethereum relative to the rest of the blockchain options?

Sure. I mean, to begin with, Ethereum has no downtime. And Wall Street is going to back a blockchain that has zero downtime. So when it comes to security and downtime, there's no second best. Ethereum is certainly the very best blockchain for that use case. Of course, Bitcoin is not possible because it doesn't have smart contracts. And of course, there is 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 it's going to back, given those reasons that I mentioned. It also helps that from a regulatory perspective, there's been some clarity and there's emerging clarity 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. Last I looked, I think a little bit more than half of stablecoins are built on Ethereum. And stablecoins are certainly where the pocket 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 on 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 is going to be the winner.

And frankly, we think that race has already been largely determined, but perhaps unbiased.

So, I appreciate the increase in the staking revenue.

Do you have a limit on the percentage that you ultimately stake? I mean, for us, the more the merrier. I'll let Eric talk about that a little bit.

In terms of the ETH on a balance sheet, we can't stake them 100%. And right now, the reason we're about like, you know, 85% is below 90% is because a portion that we're working with external managers also, you know, being staked and, you know, via different like staking strategies that was generated alpha for the company as well. So that's our target to, you know, generate just, you know, not just native staking, but beyond native staking, you know, about 3% of the yield.

But to answer your question, we can take the 100%.

Multiple custodians.

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

Yes. We primarily are using two custodians. One is Fireblocks, and another one is Cactus Custodian by Managers Board. And we have been using them for the past four or five years, and it's been working great.

Perfect. We'll go to our next question. Our next question comes from Brian Dobson with Clear Street. Please go ahead.

Hey, thanks very much.

As you look out into the broader market, thinking about your competition, what do you think sets BitDigital apart over the next two years?

I mean, we have, just taking a step back, There's SBET and there's BM&R.

These two companies, I have a lot of respect for Joe and for Tom. I was just on a panel with them in Singapore at Token 2049. We had a very healthy debate with each other. Highly recommend checking out that debate because that question came up. And the short version of my answer was that, first of all, You know, we, the digital was a, is, has a successful business. Uh, we had, you know, we had Bitcoin mining, which was profitable. We sold all our Bitcoin and bought into bought Ethereum at that. We also had a very successful HTC business. So successful that we IPO that business and we now own 71.5% of a real business. So this was that digital was not BTBT was not some sort of failed. business that was a shell that was just picked up and then you know did a pipe and shoved a bunch of ethereum on it that's not what happened this was a a real company and this company currently still has a very profitable very profitable business including staking ethereum on the balance sheet also i mean uh 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 topped. And if you ask me today, I will still continue to put the same answer. It has not topped even at $3,000. So I've been involved in the space. I also built technology on Ethereum. I was a co-founder to Fluidity Week. the team built something called AirSwap. It was a decentralized exchange. We actually sold that company to Joe Lubin, who's the co-founder of Ethereum, who is involved with SBET. So, you know, we're intimately involved with 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 this technology over other 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 convert. We are the only ones. And we just have that ability and talent and we're structured in 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's an unsecured debt. It's not secured by the underlying assets that we have in 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. It owns a controlling ownership stake in White Fiber, which is an AI infrastructure company. And because we understand the underlying technology very, very well, and the only person who would know that better than me is Joe Lubin, we think that we're very differentiated in many different ways. So we don't think, frankly, being the largest is the Marker of success is how you do it. And we've done it. It's 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 for those reasons and more, that's how we're differentiated versus SBET and BM&R.

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

Okay, we love these unsecured converts, but I'll let Eric or CFO talk more about that.

Yeah, I mean, convertible is always on the table, but we do monitor our leverage very closely, and we don't want to, you know, over-leverage 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 MNAV makes sense. We're very conservative and combined. I think that's our way of, you know, adding additional Ethereum on our accumulation treasury.

Excellent. Thank you very much.

We'll next go to Kevin Dede with HC Wienright. Please go ahead.

Hi, Sam. Hi, Eric. Hi.

I guess first question is I know you mentioned 1.2x to hash mid-year next year, Sam, but I'm looking at the hash 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 you'd be at the end of the year next year i'll give that to you cam and eric i mean likely in that range i think it's just a function of sort of the hosting portfolio pruning over time as contracts roll off and then optimizing the newer machines um i mean there might be space to increase it marginally um just based on what's available, maybe on shorter term, you know, one month extensions 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 act price.

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

We work with Figment for our native staking, and we have been very happy with their service and security as well. We take this very seriously. As we grow our digital asset space, it's in the hundreds of million dollars range and not too far from billion dollars of digital assets under management. Another strategy we have is we've been engaging with external fund 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 yeah, we're trying to generate additional yield alpha from the market as well, on top of the 3% native staking that's bringing us.

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

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

Could you just sort of walk me through your 2.9 million staking revenue number? 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?

It's based on, I think, daily basis for revenue. 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 a lot. The network has changed a lot, right? With some very large companies acquiring large amounts of Ethereum. And you named a Bitmine 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% at most recently, but I'm wondering if you think these treasury companies change that inflation pattern.

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, you know, help, you know, help accumulate and stake the ETH. That would, I think, that would average a lower staking yield. But at this point, you know, the staking yield is pretty stable. So it's not, you know, making a very material impact for the overall inflation discussion of Ethereum.

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

No, they're all being staked. And, you know, all the dads were, like, you know, running the validators. So they're still in the ecosystem, not, you know, being taken out in that regard.

Okay. Thank you, gentlemen. Thanks for having me on the call. Appreciate it. Thank you, Kim.

We'll next go to Nick Giles with B. Reilly Securities. Please go ahead.

Thank you, Operator, and good morning, everyone. This is Henry Hurl 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?

Thanks. It's a good question.

We've come across some opportunities ourselves, but we're currently focused on on our unique position and we are very uniquely positioned. We're not just some ordinary, you know, plain vanilla that we are, um, you know, we have Ethereum on our balance sheet, which we stake the vast majority of, and we own 71.5% of white fiber, which is in the hottest, sector and that will continue. We see absolutely no drop in demand for the building of the data centers, regardless of the drawdown in the sector 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 than 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're to buy another DAT, I'm unsure how they'd add value, really. I think we'll just continue to stay the course and buy CRM. And just as I mentioned today, and it's very important for everybody to note, Even though our lockup ends in about three months for White Fiber, we are announcing today that we will not sell that state throughout next year because our conviction in that company is extremely rock-solid high.

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

Eric will answer that question, but I hope that one day people will dig a little deeper on how people are doing their staking amongst the DATs. You know, it would be interesting to see if fees, fees that, you know, shouldn't be, you know, 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, you know, it's in line with the interest of shareholders. I could certainly say that with respect to ours, very much aligned with the interest of shareholders. From there on, I'll just leave it to Eric to answer your question more directly.

Yeah, I'm happy to. Yeah, the native staking right now provides about 3%. I think it will continue to provide 3% for, you know, median term period of time. And the, you know, managers we're working with, we like to see at least, you know, 4% of the yield. You know, that's a goal. But we're, you know, evaluating those strategies, you know, and justify the risk return. And by combined, you know, we'd like to at least, you know, boost, you know, 10%, 20% of the, you know, compared to the benchmark for native staking.

Great. Thanks for the time, guys.

Thank you.

Mike Grondahl, Northland Securities.

Hey, Sam. Hey, Mike. I wanted to ask you about white fiber and what would you say have been the two biggest challenges in ramping revenue there?

Well, look, you know, we're trying to close this deal, this lease, and I wish it was 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 that deal when it's I will not discuss in a timeline except to say it's very soon, but I don't want to quantify it because I don't want to be crucified afterwards if I get it wrong. So I'm glad that everybody's patient. But to answer your question, the challenge with respect to white fiber is basically how long it takes and how complicated things are in negotiating deals of a certain size. It takes a while. You know, for those who are patient, people would be likely rewarded.

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

That's right. That's right. And, you know, we are so blessed with the N of M acquisition. On the white fiber side, we did what I think was a gem of an acquisition of a team called N of M. last year, and one of their strengths is they have a retrofit approach to data centers. So their entire careers had been doing this for hyperscalers before they did it for us. They would identify facilities and turn them into two or three data centers. In fact, the latest one they did for White Fiber was they identified what was a mattress factory last February. that took control of it, I think early April or late March. And now they turned it into a tier three data center and it's going to start generating revenue now for a very well-known counterparty called Cerebrus. And they did that on time within budget, within six months. And they use a retrofit model approach to that. You cannot do that with a greenfield build. Greenfield builds take about 18 months, sometimes two years, and a lot of variables that that you don't control in building a greenfield. But because this team that we acquired has this ability to retrofit existing facilities and turn them into two or three data centers, that's a very special ability that not many people have. And we have that team. And so because, you know, 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 three 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're able to acquire and hire across the past year and a half.

Got it. Hey. Thanks for that color.

Thanks for that question.

Thank you. And next, we'll go to Pat McCann with Noble Capital Markets. Please go ahead.

Hey, thanks for taking my questions. 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?

I don't .

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 the biggest through a secured convert. I'd much rather be number two. purchasing Ethereum with an unsecured convert than being number one in doing that through a secured convert. I'm not saying that's what the number one guy did, but there are sloppy ways to buy Ethereum and to be number one 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 are you positioned? Being positioned with owning a successful company like White Fiber, 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 number one and then you can get in trouble after a while. So that is not something that is our goal. goal necessarily. Having said that, we do intend to buy material amounts 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. It's nice to see that Ethereum is down today. People may be selling Ethereum today, but it's those who have diamond hands who 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, same thing in 2019, and I'm 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'll be a lot of cyclical gyrations. But the way that BitDigital is going to purchase Ethereum will be responsibly and prudently because we don't want to blow up.

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

Yeah, there's a lot of one-off G&A expenses because of the But maybe I should leave that to Cam and Eric.

Go ahead, guys.

I mean, if G&A does consolidate white fiber and, I mean, like, from the perspective of consolidation, I would generally refer to comments made on the white fiber earnings call, which would provide a lot of nuance on that side of the business. For this digital, like, there was, Similarly, some non-recurring items, some elevated marketing spend, some that we would view as discretionary that we could pull back. Generally, BitDigital is pretty flexible from a cost structure perspective, and it can be very lean, and it will become significantly leaner. So on a forward basis, G&A should be materially lower.

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

Great. Appreciate it, guys.

And we have no questions over the phone.

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.

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