Bit Digital recently announced via a press release that it is shifting its focus from traditional Bitcoin mining operations to concentrate entirely on Ethereum staking. The company believes that leveraging the yield mechanics of Ethereum’s Proof-of-Stake consensus can establish a sustainable income stream.
For context, in late 2022, the New York-listed company announced the launch of its Ethereum staking operations to earn Ether (ETH) rewards. The firm initially staked around 2,164 ETH while maintaining its Bitcoin operations. Since then, it has significantly expanded its Ether holdings and allocated a substantial portion of them to network validation and yield generation.
Bit Digital Exits BTC Mining Business
Fast forward to today, and the firm plans to wind down or sell its Bitcoin mining infrastructure and convert its existing BTC holdings into ETH. The proceeds from these sales, along with funds raised through a public offering of its shares, will be reinvested into ETH for staking purposes.
Having decreased its Bitcoin reserves from over 1,000 BTC in early 2024, the firm boosted its Ethereum stake by more than 40%. Notably, as of March 31, Bit Digital held approximately 24,434 ETH and 417 BTC. If the firm’s BTC stack is successfully converted, the transition could push its ETH reserves beyond 42,000 units.
The move aims to transform the business into a “pure-play Ethereum staking and treasury company,” reflecting a rebalancing of its portfolio. Nonetheless, after the announcement, Bit Digital shares (BTBT) dropped by around 4%, reflecting market uncertainty over the shift away from mining.
Other Firms Slow Down on Bitcoin Mining
Over the past few months, a growing number of public Bitcoin mining firms have quietly begun winding down or transforming their mining operations due to profitability concerns. For example, Bitfarms and Riot are exploring options to leverage their existing energy and land assets to meet the growing demand for AI and high-performance computing.
Cathedra recently sold its 60 MW North Dakota mining data center to a third-party miner for $21 million. The facility, in which Cathedra held a 25% stake, was fully energized and hosted institutional clients under profit-sharing contracts. The move is part of the firm’s plan to pivot from pure mining to diversified infrastructure development and Bitcoin treasury.
