- Bit Digital now holds over 100,000 ETH worth $189 million
- $172M equity raise and 280 BTC sale funded ETH purchases
- BTBT stock jumps as firm pivots fully to Ethereum staking
Bit Digital has completed its shift to an Ethereum-based treasury strategy, which caused a 26% increase in its stock price. The company used proceeds from a $172 million equity raise and bitcoin sale to acquire more ETH. This change makes Bit Digital one of the largest public corporate holders of ETH.
The company increased its holdings from 24,434 ETH to about 100,603 ETH, which is worth almost $189.2 million. It sold about 280 bitcoin to facilitate this conversion and increase its ETH. Moreover, the capital injection from the public offering boosted the pivot.
Bit Digital Eyes Ethereum’s staking yield model For Passive Income
Bit Digital seeks to leverage Ethereum’s staking yield model to provide passive income to the network users. This plan is consistent with Ethereum’s central role in decentralized finance and tokenized asset settlement. The change is attributed to market conditions of bitcoin miners, particularly after the halving.
The company underscored the importance of Ethereum’s programmable blockchain and increasing adoption as well as solid fundamentals. Executives believe that ETH has a more viable long-term model as compared to Bitcoin mining. Bit Digital will therefore continue to expand its ETH exposure.
Also Read | Ethereum Staking Hits Record 35M ETH as Supply Squeeze Looms
BTBT Stock Surges
This action has also boosted the Bit Digital stock performance on Nasdaq where it trades as BTBT. The stock increased more than 21% to hit $3.50 per share after the Ether-focused announcement. Its market capitalization climbed from $594 million to more than $833 million in just a few days.
Source: Bit Digital, Inc.(BTBT)
Bit Digital sold more shares to raise an extra $162.9 million to increase its ETH reserves. The company started building an ether position in 2022. The shift is part of a wider diversification trend of crypto-native firms.
Reduced BTC Mining Output Pushes Corporates to ETH
Bit Digital’s move follows reduced traditional mining output due to decreased BTC block rewards. The recent halving has reduced the income of miners, making companies shift to more profitable options. The Ethereum staking system offers an attractive choice in the current circumstances.
The company currently holds the largest ETH treasuries among publicly traded crypto companies. It intends to expand its position to reinforce its leadership in ETH treasury management. This approach could reshape treasury standards in crypto-mining.
Other firms such as BitMine Immersion and SharpLink also moved to Ethereum-based treasury models. The companies intend to leverage the ETH dominance as a settlement layer of stablecoins and tokenized assets. The change indicates increased confidence in Ethereum’s ecosystem beyond speculation.
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