Bit Digital, a New York-based crypto miner listed on NASDAQ as BTBT, has announced a bold pivot. The firm is exiting all its Bitcoin mining operations to become a pure-play Ethereum staking and treasury company.
With existing holdings of 24,434 ETH and 417.6 BTC, Bit Digital plans to sell its Bitcoin assets and convert proceeds into ETH, marking a major shift in its strategic focus. The move also includes a share sale and plans to take its HPC subsidiary, WhiteFiber, public.
From Hashpower to Staking Power
The March 31 vault of Bit Digital was holding 417.6 BTC, equivalent to approximately $34 million and 24,434.2 ETH valued at $44.6 million. The company began investing in ETH staking infrastructure in 2022 and has steadily increased its positions ever since.
With Bitcoin mining profitability under pressure, revenues declined 64% in Q1 after April 2024’s halving, the shift became more compelling. Bit Digital plans to either sell or liquidate its Bitcoin mining holdings and redeploy the net proceeds into additional ETH staking.
The company will also launch a public share offering, managed by B. Riley Securities, to finance additional ETH purchases. Meanwhile, WhiteFiber, the firm’s HPC subsidiary, has filed for a standalone IPO, signaling ambitions beyond crypto alone.
Meanwhile, Google Finance statistics show that Bit Digital BTBT stock has declined to $2.35. Its stock has fallen almost 24.6% YTD and 39% since it hit an all-time high of $3.88 in January.
Bit Digital Joins a Bigger Trend
Bit Digital is just one of many firms turning to Ethereum. Several publicly traded companies have also been increasing their Ethereum exposure in recent weeks. Remarkably, sports betting company SharpLink Gaming hit the news after buying $463 million worth of ETH on June 13, becoming the largest publicly traded company in the world to own Ethereum.
In its accumulation approach, SharpLink purchased another 30 million in Ether on Tuesday, which is another indication of institutional belief in the long-term potential of ETH.
Price Analysis and Prediction: ETH vs BTC
The price of Ethereum has been on a bullish trend, trading at the price range of $2400-2500 with a 1.8% increase on the 24H timeframe. On the other hand, Bitcoin is more bullish. CoinMarketCap data shows the flagship cryptocurrency is up 0.5% on the 24H chart and 2.3% on the 7D timeframe.
Meanwhile, the ETH/BTC ratio remains 75% below its December 2021 high, suggesting a catch-up opportunity if demand for staking grows. By converting BTC into ETH and staking it, Bit Digital seeks a steadier, yield-generating business model.
The returns on ETH staking are relatively predictable, 4-6% per year, compared to the uncertain mining profit. Provided that ETH price gets better, the valuation and revenue of the firm may skyrocket. Analysts like Michael Van de Poppe believe that ETH is on the verge of a significant breakout to the upside.
Currently, Ethereum is battling with selling pressure. If it successfully moves back into that range, the analyst suggests the Ethereum price could surge to $3,000 in the short term.
Conclusion
Because Bitcoin mining has failed to perform as expected after halving, Ethereum staking has become the focal point. As long as Ethereum continues its current growth rate, Bit Digital will benefit from the ETH price increase and staking rewards.
