Bitcoin mining firm Bit Digital, Inc. (NASDAQ: BTBT) has announced a $150 million public offering to fund its transition from Bitcoin mining to Ethereum staking and treasury asset management. The New York-based company, once a prominent Bitcoin miner, is placing a significant bet on Ethereum’s proof-of-stake model, aiming to capitalize on its steady yields and lower operational costs.
Bit Digital Embraces Ethereum
Bit Digital’s public offering involves the issuance of 75 million ordinary shares at $2.00 each, with an option for underwriters to purchase an additional 11.25 million shares within 30 days. The offering, led by B. Riley Securities, is set to close today, pending customary conditions. The proceeds will primarily be used to acquire Ethereum (ETH), thereby accelerating the company’s expansion of an ETH-focused treasury.
As of March 31, 2025, Bit Digital held 24,434.2 ETH (valued at $44.6 million) and 417.6 BTC ($34.5 million), but nursed plans to convert its remaining Bitcoin holdings into Ethereum over time. This move, the firm says, aligns with Ethereum’s growing appeal since its 2022 shift to proof-of-stake, offering annual yields of 4-6.5% through staking, a stark contrast to the high costs of Bitcoin mining.
However, the announcement triggered a 15.32% drop in Bit Digital’s stock price, closing at $1.99, which reflected investor concerns over shareholder dilution and the associated risks of the pivot.
Industry Trends Reflect Strategic Shifts
The crypto sector is witnessing a broader transformation as companies adapt to market realities. Bit Digital’s exit from Bitcoin mining mirrors a trend where firms are exploring less resource-intensive models, such as Ethereum staking. Other companies, such as French Bank Societe Generale-Forge, are also strengthening Ethereum treasuries, which shows institutional confidence in the asset. However, Bitcoin remains a cornerstone for many, with up to 151 public firms holding BTC as a treasury asset amid rising institutional interest.
Meanwhile, Ethereum (ETH) currently holds the second position by market capitalization on CoinMarketCap, trailing only Bitcoin. Its market cap is approximately $295.63 billion, with a price of around $2,449 per ETH. Over the past 24 hours, a trading volume of $16.81 billion has been recorded. Ethereum’s market dominance stands at 8.69%, compared to Bitcoin’s 62.7%, underscoring its significant but secondary role in the crypto market.
