Bit Digital Shifts Focus to Ethereum Staking

Bit Digital (BTBT) announced on Wednesday its decision to transition into a dedicated Ethereum staking and treasury operation.

The New York-based firm will completely exit the bitcoin mining business, reallocating its assets and capital towards its growing Ethereum strategy. Since 2022, the company has been building its ether position and Ethereum staking infrastructure. As of March 31, Bit Digital held 24,434.2 ETH valued at $44.6 million, in addition to 417.6 BTC worth $34.5 million. Plans are in place to convert the remaining bitcoin into ether gradually.

In order to facilitate this transition, Bit Digital has initiated a process to sell or wind down its bitcoin mining operations. Net proceeds from this divestiture will be reinvested into Ethereum. No specific timeline has been provided for the sale or conversion of assets.

This announcement indicates a significant shift for a company that was once heavily invested in bitcoin mining, particularly amid the impressive gains BTC has experienced compared to ETH. The ETH/BTC ratio has decreased by 75% since December 2021.

This pivot is somewhat expected given the challenges within the mining industry following last year’s halving, which halved BTC mining rewards and squeezed profit margins, even as bitcoin prices rallied.

Additionally, Bit Digital is planning to sell shares to facilitate more ether purchases, and its high-performance computing subsidiary, WhiteFiber, has submitted a draft registration letter with the Securities and Exchange Commission regarding a potential public offering.

Currently, BTBT shares are down 3.41% in after-hours trading.