Bit Digital, the cryptocurrency mining firm, confirmed its pivot away from Bitcoin mining toward Ethereum staking, raising $150 million through a major public offering aimed at buying additional Ethereum (ETH).
The public offering notably issued 75 million shares valued at $2 each, with an option for underwriters to purchase another 11.25 million shares within thirty days of closing. The deal, scheduled for completion on June 27, is contingent upon standard closing conditions.
According to its announcement, Bit Digital plans to allocate proceeds from the public offering toward aggressively building out its Ethereum treasury. Rebranding itself as a “digital asset platform” focused primarily on Ethereum-native treasury building and staking operations, the company underscores a significant strategic shift away from Bitcoin mining activity.
The move towards Ethereum marks one of the largest public commitments to building an ETH-centered treasury to date. However, this shift has come at a cost: news of this strategic transition triggered a 15% decline in Bit Digital’s stock value. The company’s stock closed 15.32% lower, trading around $1.99 during market hours following the announcement.
Despite the notable short-term impact on its stock, Bit Digital has steadily accumulated Ethereum since 2022, alongside its previously-held Bitcoin reserves. As of June 14, the company’s holdings comprised about 24,434 ETH, equivalent to approximately $59.6 million, alongside 417.6 BTC, valued around $44.85 million. Following the $150 million capital raise, Bit Digital expects to substantially increase its Ethereum treasury, bolstering its ETH holdings to around $209.6 million, calculated at current market prices near $2,441 per ETH.
Additionally, the company indicated it will ultimately convert all of its remaining Bitcoin holdings entirely into Ethereum over time, solidifying its commitment to an Ethereum-first business model.
This strategic shift for Bit Digital aligns with a broader institutional trend toward establishing significant corporate reserves of Ethereum. Institutional Ethereum holdings have grown steadily: recent reports indicate that strategic Ethereum reserves among businesses reached 1.19 million ETH on June 19, representing more than 1% of Ethereum’s total circulating supply and amounting to roughly $3 billion at current valuations.
