Speculative decoding accelerates autoregressive generation by using a lightweight draft to propose multiple tokens for parallel verification. However, existing methods often require an additional draft model or weight representation, introducing non-negligible memory overhead on resource-constrained devices. Self-speculative approaches reduce this overhead, yet still face trade-offs between draft quality, target quality, and storage efficiency. We propose BitNest, a bit-nested speculative decoding framework that embeds a low-precision draft directly into the higher-precision target representation. Instead of deriving a draft from a predefined target, BitNest first constructs a strong low-precision base and then recovers the higher-precision target through residual refinement, enabling both models to share a single physical weight representation. BitNest further extends this progressive-precision design to the KV cache for long-context inference. Across multiple 7B--8B edge-friendly LLMs and diverse workloads, BitNest achieves an average speculative acceptance rate of 95.2% while closely preserving higher-precision model quality, and delivers 1.48--1.61x end-to-end speedup over FP16 autoregressive decoding. On the LLaMA models supported by all representative self-speculative baselines, BitNest also achieves consistently competitive or higher decoding speedup.

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