Bit Digital to Raise $67.3 Million for Ethereum Expansion

Bit Digital, a Nasdaq-listed crypto infrastructure firm, has announced plans to raise $67.3 million through a direct offering of 22 million ordinary shares. The funds will be used exclusively to purchase Ethereum, further expanding the company’s growing ETH treasury. The offering is priced at $3.06 per share and is managed by B. Riley Securities, with an expected closure around July 15.

This move follows Bit Digital’s recent decision to convert its entire Bitcoin holdings into Ether, reflecting a strategic pivot toward Ethereum. As of early July, the firm held roughly 100,603 ETH, valued at approximately $301 million. Bit Digital offers a range of services including validator operations, enterprise custody, and yield optimization. The company began building its Ethereum stake and engaging in staking activities in 2022, signaling a long-term commitment to the Ethereum ecosystem.

In a recent filing with the Securities and Exchange Commission, Bit Digital disclosed its preliminary estimated revenue for the second quarter to be between $24.3 million and $26.9 million. The company’s latest capital raise and strategic shift toward Ethereum comes amid growing institutional interest in the world’s second-largest cryptocurrency. This move aligns with the broader trend of public companies diversifying into crypto holdings, including BTC, ETH, SOL, and XRP.

Bit Digital’s decision to focus on Ethereum is part of a broader strategy to capitalize on the growing institutional interest in the cryptocurrency. The company’s services, which include validator operations, enterprise custody, and yield optimization, position it well to benefit from the expanding Ethereum ecosystem. By converting its entire Bitcoin holdings to Ether and raising additional funds to purchase more Ethereum, Bit Digital is demonstrating a strong commitment to the Ethereum network.

This strategic shift is not unique to Bit Digital. Other public companies, such as BIT Mining and DeFi Development Corp., have also announced plans to build crypto treasuries, including holdings in Solana (SOL). These moves reflect a growing trend among public companies to diversify their holdings into cryptocurrencies, following the model pioneered by Michael Saylor’s Strategy. This trend is driven by the increasing institutional interest in cryptocurrencies and the potential for significant returns on investment.

Bit Digital’s decision to raise $67.3 million to expand its Ethereum treasury is a significant development in the cryptocurrency market. The company’s strategic pivot toward Ethereum and its commitment to the Ethereum ecosystem position it well to benefit from the growing institutional interest in the cryptocurrency. As more public companies diversify their holdings into cryptocurrencies, Bit Digital’s move is likely to be seen as a forward-thinking strategy that aligns with the broader trends in the market.