Ethereum News Today: Bit Digital Bets Big on Ethereum's Energy-Efficient Future Over Bitcoin's PoW Legacy

Source: [1] Bit Digital Inc. Reports Monthly Ethereum Treasury and Staking Metrics for September 2025 (https://bit-digital.com/news/bit-digital-inc-reports-monthly-ethereum-treasury-and-staking-metrics-for-september-2025/)

[2] Bit Digital reports Ethereum holdings of 122,187 ETH worth $506.6 million (https://www.investing.com/news/company-news/bit-digital-reports-ethereum-holdings-of-122187-eth-worth-5066-million-93CH-4275930)

[3] Bit Digital Treasury Report Signals Full Ethereum Focus Over Bitcoin (https://blockonomi.com/bit-digital-treasury-report-signals-full-ethereum-focus-over-bitcoin-holdings-now-at-122187-eth/)

[4] Bit Digital (BTBT) Holds $506.6 Million in Ethereum by Q3 2025 (https://www.gurufocus.com/news/3134567/bit-digital-btbt-holds-5066-million-in-ethereum-by-q3-2025)

[5] Bit Digital Inc. Unveils September 2025 Ethereum Treasury and Staking Metrics (https://third-news.com/article/f3358446-a3c1-11f0-8ace-9ca3ba0a67df)

[6] Why Bit Digital (BTBT) Is Up 9.4% After $150M Convertible Notes (https://simplywall.st/stocks/us/software/nasdaq-btbt/bit-digital/news/why-bit-digital-btbt-is-up-94-after-150m-convertible-notes-r)

[7] Financing the Ethereum Pivot: Bit Digital Raises $150 Million (https://www.panabee.com/news/financing-the-ethereum-pivot-bit-digital-raises-150-million-with-4-00-convertible-notes)

Bit Digital, Inc. (Nasdaq: BTBT) has announced a strategic realignment of its digital asset portfolio, shifting focus entirely to Ethereum (ETH) and abandoning prior Bitcoin-centric operations. As of September 30, 2025, the company reported holding 122,187 ETH, valued at $506.6 million at a closing price of $4,145.99 . This represents a significant expansion of its Ethereum treasury, with 81.8% of holdings (~99,936 ETH) staked to generate yield. Staking operations yielded 291 ETH in rewards during the period, translating to an annualized yield of 3.37% .

The company's acquisition strategy has remained active, with 653 ETH added in September alone, maintaining an average cost basis of $2,643.27 per ETH . This cost structure positions the company's holdings above breakeven levels, generating both capital appreciation and yield. Bit Digital's shift to Ethereum follows a broader industry trend toward proof-of-stake (PoS) mechanisms, which offer energy efficiency and predictable returns compared to Bitcoin's energy-intensive proof-of-work (PoW) model .

A $150 million convertible notes offering, completed in October 2025, underscores the company's commitment to Ethereum. The proceeds will be allocated to further ETH purchases, with the underwriters' over-allotment option fully exercised . This financing follows a $100 million convertible senior notes proposal in August 2025, reflecting aggressive capital deployment to scale staking infrastructure. The notes carry a 4.00% annual interest rate, maturing on October 1, 2030, with a conversion price of $4.16 per share, a 30% premium to the September 29 closing price .

Bit Digital's institutional-grade staking operations now rank among the largest in the Ethereum ecosystem, leveraging advanced validator management and custody solutions. The company's platform emphasizes yield optimization and protocol governance, aligning with Ethereum's post-Merge (2022) transition to PoS . While the firm retains 27 million shares of WhiteFiber (WYFI), representing 71.5% of outstanding stock, its primary growth engine remains Ethereum-based treasury and staking .

Analysts highlight the strategic advantages of Bit Digital's model, including lower operational costs and reduced environmental impact compared to Bitcoin mining. The company's staking yield of 3.37% outperforms average Bitcoin mining returns, which vary widely based on electricity costs and hardware efficiency . However, risks persist, including Ethereum price volatility and the concentration of staked ETH in institutional pools like Lido and Coinbase .

With 321.4 million shares outstanding as of September 30, Bit Digital's capital structure faces dilution risks from ongoing equity issuances. The company's recent shareholder meeting to approve share capital increases reflects efforts to manage these risks while scaling operations. As the firm prepares for the AIM Summit in Dubai, its Ethereum-centric strategy signals a broader institutional embrace of PoS blockchains for yield generation .

The press release underscores Bit Digital's role in maturing the corporate staking sector, offering a blueprint for institutional participation in on-chain yield. While challenges such as regulatory scrutiny and market volatility remain, the firm's capital raise and operational scale position it as a key player in Ethereum's evolving ecosystem.