Bit Digital has decided to abandon Bitcoin mining and invest in Ethereum through a staking strategy. The company now has 100.000 ETH and its shares have soared 18%, marking a significant shift in the crypto ecosystem.
The announcement by Nasdaq-listed Bit Digital was met with enthusiasm by the market, triggering an immediate 18% surge in its shares, and over 40% growth in the past week.
The digital asset specialist's decision to completely abandon Bitcoin mining and focus exclusively on Ethereum through staking and active treasury management with ETH marks a turning point in its operating model.
According to the firm, this shift is not merely a response to a passing trend, but rather a result of a thorough analysis of the business's long-term sustainability.
Figures provided by the company itself show that Bit Digital experienced a 64% drop in Bitcoin mining revenue during the first quarter of 2025, a decline attributed to both the recent halving and increased competition and the technical difficulty of maintaining profitable operations on the network. Faced with this situation, the company decided to shift to a model based on Ethereum, the second-largest crypto asset by market capitalization.
BUY ETHEREUM ON BIT2MEEthereum as Bit Digital's new operating axis
The move to Ethereum hasn't been symbolic, but rather quantitative and structural. Bit Digital ha sold more than 280 BTC and plans to gradually convert the remainder of its reserves, some 417,6 BTC with an estimated value of $35 million, directly into ETH.
Its current Ether holdings have grown exponentially, from 24.434 ETH to over 100.000 ETH, valued at approximately $189 million. With this move, the company positions itself among the corporations with the greatest exposure to Ethereum in the world, behind only entities like Coinbase and the Ethereum Foundation.
The strategy of staking, which involves locking up ETH to participate in validating transactions on the network, allows Bit Digital to generate consistent passive income while contributing to the security of the Ethereum ecosystem. Staking yields are estimated to range between 3% and 5% annually, depending on network conditions, which represents an attractive profitability in contrast to the margins in Bitcoin mining.
However, the change Bit Digital has decided to implement does not represent a criticism of the Bitcoin mining model or of the cryptocurrency as a strategic asset, but rather a reorientation based on operational profitability, energy costs, and current market conditions. Ethereum, with its successful transition to proof-of-stake (PoS) consensus from proof-of-work (PoW), offers a more flexible infrastructure for corporate investment and growth models.
Sam Tabar, CEO of Bit Digital, he highlighted who relies on Ethereum's potential capacity to “rewrite the entire financial system”.
To finance this transformation, Bit Digital launched a public offering, raising $172 million. The majority of this capital has been used to purchase massive amounts of ETH and strengthen its staking infrastructure.
BUY ETHEREUM HEREA strategic change to continue growing
The market's response has been clear. Bit Digital's shares, which had been showing signs of weakness after several quarters of declining operating margins due to BTC mining, experienced a significant recovery upon the announcement of its new strategy. The initial 18% rally, which even exceeded 40% last week, has been interpreted by analysts as a validation of the new Ethereum-centric approach.
Industry experts point out that this type of corporate transition could become more common in the future, especially among companies facing structural challenges with traditional mining. However, they insist that this does not represent a "flight" from Bitcoin, but rather a strategic adaptation, with Ethereum currently offering better operating conditions for institutional projects seeking sustainability and scalability.
Bit Digital has confirmed that it will continue to actively manage its assets, without ruling out the possibility of reintroducing Bitcoin into its treasury if conditions permit. Its new role as a significant player in Ethereum does not imply a break from other assets, but rather an evolution toward a more versatile model for cryptocurrency management.
Thus, the firm has managed to turn a significant drop in revenue into an opportunity for financial innovation. By investing in Ethereum, it is not only rethinking its business model but also its role within the global crypto ecosystem. A move that will be closely watched by other companies seeking sustainability in times of change.
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