Bit Digital Abandons Bitcoin for Ethereum Treasury Strategy

• Bit Digital sold all 280 Bitcoin holdings and raised $172 million to buy Ethereum, increasing its holdings to over 100,000 ETH.

• The company’s stock jumped nearly 20% after the announcement and gained over 60% in one week.

• Bit Digital now competes with SharpLink Gaming to become the largest publicly traded Ethereum holder.

Nasdaq-listed Bit Digital has dramatically pivoted from Bitcoin to Ethereum, selling its entire Bitcoin holdings and deploying $172 million into Ethereum purchases. The cryptocurrency mining company’s stock surged nearly 20% in a single trading session following the announcement, reflecting investor confidence in the strategic shift.

The company sold 280 Bitcoin and used the proceeds to purchase Ethereum tokens. With a $172 million public offering dedicated entirely to the Ethereum acquisition, Bit Digital increased its holdings from 24,434 ETH to 100,603 ETH. This aggressive accumulation strategy positions the company as a major corporate Ethereum holder.

Strategic Rationale Behind the Ethereum Pivot

Bit Digital cited Ethereum’s programmability and staking capabilities as key factors driving the decision. The company believes Ethereum’s advanced smart contract functionality and yield-generating staking mechanism provide superior long-term value to Bitcoin’s more limited feature set.

“Bit Digital is aligning itself with Ethereum’s long-term potential and positioning itself as a focused Ethereum treasury platform in the public markets,” the company stated in its press release. Management emphasized Ethereum’s role in decentralized finance and its potential to transform traditional financial systems.

The timing coincides with growing institutional interest in Ethereum treasury strategies. Several publicly traded companies have announced similar pivots, creating a competitive landscape for corporate Ethereum accumulation.

Bit Digital competes directly with SharpLink Gaming for the largest publicly traded title in the Ethereum holder category. The race highlights the increasing corporate adoption of Ethereum as a treasury asset beyond Bitcoin’s traditional dominance.

BitMine, another cryptocurrency mining company, recently announced a $250 million Ethereum purchase plan and appointed Tom Lee as board chairman. This trend suggests a broader industry shift toward diversified cryptocurrency treasury strategies.

Bit Digital’s stock price reflected immediate market approval, jumping 19.56% to $3.52 per share on the announcement day. The company has gained over 60% in weekly trading, demonstrating strong investor sentiment toward the Ethereum strategy.

Broader Cryptocurrency Treasury Trends

The corporate Ethereum adoption wave contrasts with continued Bitcoin treasury activity. Companies purchased 8,400 Bitcoin the previous week, maintaining strong institutional demand for the original cryptocurrency.

However, notable Bitcoin advocate Michael Saylor’s Strategy paused its 12-week Bitcoin buying streak, potentially signaling increased interest in alternative cryptocurrency treasury approaches.

Ethereum co-founder Joseph Lubin believes the growing trend of corporate Ethereum adoption will accelerate decentralized finance integration on Wall Street. This institutional backing could drive broader mainstream acceptance of Ethereum-based financial products.

Despite positive corporate sentiment, Ethereum’s price declined approximately 2% following reports of the US government’s Ethereum transfers to Coinbase. Traders interpreted these movements as potential selling pressure from government holdings.

The divergence between corporate accumulation and short-term price movements highlights cryptocurrency markets’ complex dynamics. While institutional adoption continues expanding, immediate price action remains sensitive to regulatory developments and large holder activities.