Bit Digital Raises $67.3 Million to Expand Ethereum Holdings

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. This strategic move aligns with the increasing institutional interest in Ethereum amid a rising crypto market. The offering, priced at $3.06 per share, is managed by B. Riley Securities and is expected to close around July 15.

The decision to raise capital comes on the heels of Bit Digital’s recent conversion of its entire Bitcoin holdings into Ether. As of early July, the firm held roughly 100,603 ETH, valued at approximately $301 million. This shift reflects a strategic pivot toward Ethereum, a move that began in 2022 when the company started building its Ethereum stake and engaging in staking activities. Bit Digital offers a range of services including validator operations, enterprise custody, and yield optimization, 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. Despite a slight dip in its stock price by 1.2% to close at $3.29 on Monday, shares have risen more than 32% over the last month. Ethereum’s price has also gained momentum, rising 0.6% to $2,991 and climbing over 18% in the past week amid a broad crypto market rally. Meanwhile, Bitcoin remained relatively flat, dipping slightly to $118,852.

Bit Digital’s latest capital raise and strategic shift toward Ethereum comes amid growing institutional interest in the world’s second-largest cryptocurrency. The company’s move to convert its Bitcoin holdings to Ethereum and its plans to raise $67.3 million to buy more ETH underscore its commitment to the Ethereum ecosystem. This strategy is part of a broader trend where more public companies are diversifying into crypto holdings, including BTC, ETH, SOL, and XRP.

Bit Digital’s pivot to Ethereum is not an isolated incident. Other major players, such as SharpLink Gaming, have recently purchased significant amounts of ETH, valued at nearly $49 million. Ethereum co-founder Joe Lubin confirmed that large acquisitions of ETH are becoming more common, indicating a growing institutional appetite for the cryptocurrency. This surge in institutional accumulation is contributing to Ethereum’s recent price rally, which has seen ETH climb 18% over the past week.

Bit Digital’s strategic shift to Ethereum is a clear indication of the growing confidence in the Ethereum ecosystem. The company’s decision to convert its entire Bitcoin holdings into Ethereum and its plans to raise $67.3 million to purchase more ETH demonstrate a long-term commitment to the cryptocurrency. This move aligns with broader trends as institutions increasingly favor Ethereum for its utility, scalability, and ecosystem diversity. Bit Digital’s role as a full-stack crypto infrastructure provider, offering services like validator operations, enterprise custody, and yield optimization, further solidifies its position in the Ethereum ecosystem.

Bit Digital’s strategic pivot to Ethereum is part of a larger trend where more publicly traded firms are building multi-asset crypto treasuries. This trend is evident in the recent announcements by BIT Mining and DeFi Development Corp., which have plans to raise funds to build Solana (SOL) treasuries. Additionally, Canada-based Sol Strategies, already holding over 420,000 SOL tokens, has filed to list on the Nasdaq Capital Market, signaling rising cross-border interest in blockchain-based treasuries. Bit Digital’s move to Ethereum is a clear indication of the growing institutional interest in the cryptocurrency and its potential as a core institutional asset.