Ethereum News Today: Bit Digital Boosts Capital by 188.57% to Expand Ethereum Holdings to 120,306

Bit Digital Inc., a publicly traded firm focused on Ethereum (ETH) acquisitions, has announced plans to expand its capital-raising capabilities to fund additional ETH purchases. In a recent SEC filing, the company revealed it will propose a shareholder vote in September 2025 to increase its authorized ordinary shares from 340 million to 1 billion, raising total authorized capital from $3.5 million to $10.1 million [1]. The move, endorsed unanimously by the board, aims to support the company’s long-term strategy of building institutional-grade Ethereum reserves.

The proposal follows Bit Digital’s recent $67.3 million direct offering to institutional investors, which funded the purchase of 19,683 ETH. This acquisition, completed on July 18, raised its total ETH holdings to 120,306 units, valued at approximately $450 million based on CoinGecko data [1]. The firm now ranks among the largest publicly listed companies with Ethereum holdings, trailing only Bitmine Immersion Technologies and SharpLink Gaming. For context, SharpLink’s holdings reached 360,807 ETH in July, valued at $1.34 billion, while Bitmine disclosed Ethereum reserves exceeding $2 billion [3].

Bit Digital’s strategic pivot to Ethereum reflects its view of the cryptocurrency as a foundational infrastructure layer for the “onchain economy.” CEO Sam Tabar emphasized the asset’s programmability, adoption growth, and staking yield model in a statement, calling Ethereum “essential to the next phase of digital financial infrastructure.” The firm currently stakes the majority of its ETH holdings, generating yield while contributing to network security [1]. This approach aligns with broader industry trends, as firms increasingly treat Ethereum as a strategic treasury asset.

The capital expansion proposal underscores the growing institutional demand for Ethereum. Analysts note that Ethereum ETFs and institutional treasuries have absorbed over 32 times more ETH than new token issuance since mid-May 2024, creating a supply-driven bullish narrative [5]. Bitwise CIO Matt Hougan highlighted this imbalance as a catalyst for price appreciation, though technical analysts caution that Ethereum’s current level near $3,620 faces critical resistance above $3,800. A breakout to $4,100 could push prices toward $5,200, while consolidation below $3,650 risks a pullback to $2,800 [5].

Bit Digital’s strategy, however, carries risks. The proposed equity issuance could dilute existing shareholders, and Ethereum’s price volatility remains a concern. The company’s approach also intersects with regulatory scrutiny as traditional financial institutions integrate crypto assets into their balance sheets. Bitmine Immersion, for instance, has announced plans to stake 5% of Ethereum’s total supply, further embedding the asset into institutional operations [6].

The shareholder vote on September 10, 2025, will determine the fate of the capital increase. If approved, Bit Digital will leverage the expanded funding to scale its Ethereum treasury, reinforcing its position in a market increasingly shaped by institutional demand and Ethereum’s deflationary mechanics.

Source:

[1] [Mitrade] https://www.mitrade.com/au/insights/news/live-news/article-3-989318-20250726

[3] [PANews] https://www.panewslab.com/en/articles/i19fcznw

[5] [CoinCentral] https://coincentral.com/ethereum-eth-price-supply-crunch-could-trigger-massive-rally-to-5200/

[6] [CryptoSlate] https://cryptoslate.com/bitmine-immersion-aims-to-stake-5-of-ethereums-supply-as-holdings-exceed-2-billion/