Bit Digital, Inc. (Nasdaq: BTBT) raised approximately $162.9 million in net proceeds through a public offering of 86.25 million ordinary shares, with the funds earmarked for purchasing Ethereum (ETH) to expand its corporate treasury and staking operations. The offering, which closed on July 1, 2025, included an additional $21.4 million from underwriters exercising their option to purchase 11.25 million more shares.
The company is pivoting from Bitcoin mining, which saw a 64% revenue drop in Q1 2025, to focus on Ethereum staking, holding 24,434.2 ETH (valued at ~$59.8 million as of July 2, 2025) and planning to convert its 417.6 BTC (~$28 million) into ETH over time. This move reflects a broader trend of institutional interest in Ethereum as a treasury asset due to its staking yields and role in decentralized finance.
Bit Digital’s pivot from Bitcoin mining to Ethereum staking reflects a strategic response to declining Bitcoin mining profitability (64% revenue drop in Q1 2025). Ethereum’s Proof-of-Stake (PoS) model offers predictable yields (typically 3-5% annually), making it attractive for generating passive income compared to the energy-intensive and volatile Bitcoin mining. By allocating funds to acquire ~24,434.2 ETH (~$59.8M as of July 2, 2025) and planning to convert 417.6 BTC (~$28M) into ETH, Bit Digital is positioning Ethereum as a core treasury asset. This mirrors moves by companies like MicroStrategy with Bitcoin, signaling growing institutional confidence in Ethereum’s long-term value.
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The capital will fund infrastructure for Ethereum staking, potentially increasing Bit Digital’s staking rewards and market influence in Ethereum’s ecosystem. This could position the company as a significant player in decentralized finance (DeFi) and Ethereum’s validator network. A public company raising significant capital to buy ETH signals institutional adoption, potentially boosting market sentiment and ETH prices. This could encourage other firms to diversify crypto holdings beyond Bitcoin.
Large-scale ETH purchases reduce circulating supply, especially as staked ETH is locked in validator nodes, potentially creating upward price pressure if demand persists. Bit Digital’s shift may pressure other miners to explore alternative revenue streams, especially as Bitcoin’s halving cycles reduce block rewards and mining profitability. ETH’s price (~$2,448 as of July 2, 2025) is subject to market fluctuations. A bearish market could erode the value of Bit Digital’s treasury.
Institutional crypto holdings face scrutiny, particularly in the U.S., where Ethereum’s status as a security remains debated. Regulatory crackdowns could complicate staking operations. Scaling staking infrastructure requires technical expertise. Any mismanagement (e.g., slashing penalties for validator errors) could reduce yields or lead to losses.
Bitcoin is often viewed as “digital gold,” emphasizing scarcity and decentralization. Companies like MicroStrategy hold BTC for long-term value preservation. However, Bitcoin’s Proof-of-Work (PoW) mining is capital-intensive, environmentally criticized, and less flexible for generating yield. Ethereum’s PoS transition (post-Merge 2022) enables staking, offering yields and supporting DeFi applications.
Its ecosystem powers smart contracts, NFTs, and dApps, making it a functional asset for corporate treasuries seeking both growth and income. Firms like MicroStrategy and Marathon Digital prioritize Bitcoin, betting on its scarcity and market dominance. They view BTC as a hedge against inflation and fiat devaluation but face challenges from mining’s high costs and volatility.
Bit Digital’s move reflects a growing cohort favoring Ethereum for its staking yields and DeFi exposure. This strategy appeals to firms seeking active returns rather than passive holding, though it involves navigating Ethereum’s complex ecosystem and risks like smart contract vulnerabilities. Bitcoin-focused firms may attract investors seeking stability in crypto’s “blue-chip” asset, while Ethereum-focused firms like Bit Digital appeal to those betting on Web3 and DeFi growth.
Bitcoin’s simpler narrative contrasts with Ethereum’s multifaceted use cases, creating a divide in perceived risk. Ethereum’s staking and DeFi exposure carry technical and regulatory risks, while Bitcoin’s risks are tied to price volatility and mining economics. Bit Digital’s pivot may inspire other crypto firms to diversify into Ethereum or other PoS assets, reducing reliance on Bitcoin mining amid rising energy costs and regulatory pressures.
The choice between Bitcoin and Ethereum reflects differing corporate visions—Bitcoin as a safe haven vs. Ethereum as a growth engine. This divide could shape how institutions allocate capital in crypto markets, influencing liquidity and price dynamics. Bit Digital’s $163M raise to buy Ethereum marks a bold shift toward staking and DeFi, with implications for market sentiment, ETH demand, and competitive dynamics in the crypto industry.