- Bit Digital has fully replaced its Bitcoin holdings with Ethereum in a major shift to a single asset treasury model.
- The company raised $172 million and used the full amount to buy ETH increasing its holdings fourfold.
- Bit Digital plans to stake most of its ETH to earn yield and reduce reliance on traditional income sources.
Bit Digital has sold all its Bitcoin holdings and shifted to an Ethereum-only treasury. The Nasdaq-listed firm offloaded 280 BTC and used the proceeds to buy ETH. This move completes a three-month transition plan aimed at redefining its asset strategy.
The firm disclosed that it had raised $172 million through an underwritten public offering. Bit Digital deployed the entire amount to purchase additional Ethereum. This raised its ETH holdings from 24,434 to over 100,600 in a single quarter.
Ethereum Now Dominates the Balance Sheet
With Ethereum prices hovering around $2,600, Bit Digital’s holdings are valued at nearly $261 million. The firm intends to stake the bulk of its holdings through existing validator infrastructure. This will enable it to generate on-chain yield and support ongoing operations.
Bit Digital’s management cited Ethereum’s design and yield potential as key drivers behind the move. The company plans to position itself as a publicly traded Ethereum treasury platform. This signals a shift from the previous hybrid model that included Bitcoin and hash-rate leasing.
Public Firms Turning to Ethereum
The announcement has sent Bit Digital’s stock price up by nearly 20% in one day. The price rose to $3.52, marking a 60% gain over the past week. The company now joins a growing list of public firms favoring Ethereum over Bitcoin.
SharpLink Gaming remains a strong competitor, also aiming to build a large ETH treasury. Recent trends show increased corporate interest in Ethereum. Some companies point to Ethereum’s staking model and lower energy costs as attractive features.
Bitcoin miner BitMine has also announced a $250 million fund to acquire ETH. The firm has tapped Wall Street veteran Tom Lee to lead its Ethereum-focused board.
Ethereum Demand Outpaces Issuance
Industry analysts noted that corporate demand for Ethereum is growing rapidly. Some believe this demand now exceeds the network’s monthly ETH issuance. Others point to staking yields as a new way for companies to generate returns from treasury assets.
Bit Digital’s move reflects a broader shift among companies once focused on Bitcoin mining. The shift follows reduced profitability after Bitcoin’s latest halving event. Proof-of-stake models like Ethereum now offer more predictable rewards with fewer operational costs.
Despite rising corporate interest, Ethereum’s price is down 2% due to market speculation. The decline followed reports of the US government transferring ETH to Coinbase. Meanwhile, Bitcoin-focused companies continue to buy at scale, though activity has slowed in recent days.
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