Bit Digital Shifts Strategy: From Bitcoin Mining to Ethereum Holdings
Stock dips nearly 4% as company sells BTC and shares to expand ETH reserves
A Strategic Pivot to Ethereum
Bit Digital (BTBT) is walking away from Bitcoin mining in a bold move to rebrand itself as a pure Ethereum staking and treasury firm.
In a statement released Wednesday, the Nasdaq-listed crypto mining company announced plans to sell or retire its Bitcoin mining operations and gradually convert its 417.6 BTC holdings into Ether (ETH)—with no specific timeline disclosed.
The company also said it would sell additional stock and use the proceeds to acquire more ETH. The decision, Bit Digital says, aligns with its long-term vision that began in 2022, when it first entered Ethereum staking.
“We’re aiming to become a pure play Ethereum staking and treasury company,” Bit Digital stated.
ETH Reserves to Surge by Over 18,000 Tokens
As of March 31, Bit Digital held 24,434.2 ETH and 417.6 BTC. A complete BTC-to-ETH conversion based on current prices would add more than 18,000 ETH, pushing the firm’s holdings to over 42,000 ETH.
This would make Bit Digital one of the largest public holders of ETH, trailing only SharpLink Gaming and Coinbase, according to Strategic ETH Reserve data.
Markets React: BTBT Stock Slumps
The announcement was not well received by investors. Bit Digital shares fell 3.69% to $2.35 during Wednesday’s trading session. The stock slipped a further 3.83% in after-hours trading, ending at $2.26, per Google Finance.
📉 BTBT stock is down nearly 25% year-to-date, and is now 39% below its January 6 peak of $3.88.
Bit Digital dipped further in after-hours trading . Source: Google Finance
A Costly Quarter, But a New Focus
The pivot comes after a challenging Q1 for the firm. Net revenue declined 18% year-on-year, and profit margins collapsed by 240%, signaling financial strain under the old model.
In April, Bit Digital acquired a $53 million industrial facility in Madison, North Carolina, signaling expansion into AI and high-performance computing as it repositions its business around Ethereum’s ecosystem.
ETH Adoption Rises Among Public Firms
Bit Digital joins a growing list of publicly traded companies embracing ETH. Earlier this month, SharpLink Gaming made headlines by purchasing $463 million in Ether, followed by another $30 million acquisition on June 18.
These moves suggest Ethereum is gaining traction as the preferred asset for firms pivoting toward blockchain utility over mining operations.
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