- Bit Digital plans to raise $67 million to buy more Ethereum and expand its crypto treasury strategy.
- The company has fully moved from Bitcoin to Ethereum and now holds over 100,000 ETH in its balance sheet.
- Institutional demand for Ethereum is rising as more public firms increase crypto holdings in their treasury plans.
Bit Digital has launched a $67.3 million direct share offering targeting institutional investors. The company plans to use the entire proceeds to buy Ethereum. It announced the deal on Monday, stating that 22 million ordinary shares will be offered at $3.06 each. The offering, managed by B. Riley Securities is expected to close around July 15.
The move builds on Bit Digital’s earlier decision to convert its entire Bitcoin treasury into Ether. This marks a significant shift in its digital asset strategy. The firm now holds about 100,603 ETH, worth roughly $301 million at current market prices. Bit Digital started staking Ethereum in 2022, signaling its long-term commitment to the blockchain.
Shift from Bitcoin to Ethereum
Bit Digital no longer holds Bitcoin in its treasury. The company has fully transitioned to Ethereum, showing a strong preference for the second-largest cryptocurrency. The strategy aligns with broader market trends where Ethereum has gained increased attention from institutions.
Ethereum’s price has risen over 16% in the past week, reaching $2,971 as of press time. Bitcoin remained mostly unchanged, falling slightly to $118,852. Bit Digital’s stock dropped 1.2% on the day, closing at $3.29. However, it has climbed over 32% in the past month.
Strong Institutional Demand for ETH
The crypto infrastructure company offers validator operations, custody solutions, and yield optimization services. It began building its Ethereum position in 2022 and continues to expand its staking activities. Bit Digital’s estimated Q2 revenue is between $24.3 million and $26.9 million, according to a new SEC filing.
The company joins a growing list of firms increasing their Ethereum exposure. On Sunday, SharpLink Gaming acquired 16,374 ETH valued at nearly $49 million. The purchase was made through Galaxy Digital’s over-the-counter platform. Ethereum’s appeal continues to grow amid rising demand for scalable blockchain solutions.
Public Firms Move Toward Crypto Treasuries
More public firms have started diversifying their treasuries with crypto assets. These include Ethereum, Solana, and other major tokens. BIT Mining recently unveiled plans to raise up to $300 million to build a Solana treasury.
Canadian firm Sol Strategies now holds more than 420,000 SOL. It also filed to list shares on Nasdaq under the ticker “STKE.” DeFi Development Corp. disclosed a $2.7 million Solana purchase last week as part of its crypto strategy.
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