Bit Digital Converts Entire Bitcoin Reserve to Ethereum Boosting Holdings by 311%

Bit Digital, a New York-based cryptocurrency mining company, has completed a significant shift in its treasury strategy by converting its entire 280 Bitcoin (BTC) reserve into Ethereum (ETH). This move, announced on July 7, marks the culmination of a three-month transition to an Ethereum-only treasury strategy. The company sold its BTC holdings and used the proceeds to purchase ETH, resulting in a substantial increase in its Ethereum holdings.

The company's management deployed the net cash from the sale to acquire additional ETH, boosting its balance sheet from 24,434 ETH on March 31 to approximately 100,603 ETH. This strategic shift was accompanied by an underwritten share sale that raised around $172 million in gross proceeds. The company's CEO, Sam Tabar, highlighted Ethereum’s programmable design, growing adoption, and native staking yield as key factors driving this decision. He emphasized that Ethereum presents a superior store-of-value thesis compared to idle Bitcoin, and the company plans to "aggressively add more" ETH to position itself as a focused Ethereum treasury vehicle in public markets.

Prior to this transition, Bit Digital maintained a hybrid treasury that held both Bitcoin and Ethereum while operating hash-rate leases and validator nodes. The recent ETH purchases have eliminated all BTC exposure, leaving the company with an Ether position worth approximately $261 million at Monday’s $2,600 spot rate. Management intends to stake most of the new inventory through its existing validator infrastructure, converting the holdings into an on-chain yield stream that can support operating expenses and future purchases.

This shift in corporate demand for Ethereum aligns with a broader trend among former proof-of-work miners who have faced margin compression following Bitcoin’s most recent block reward halving. By pivoting to proof-of-stake economics, Bit Digital can generate a predictable reward rate of approximately 4% without the energy costs associated with hash rate procurement. This move is seen as a strategic response to the changing landscape of cryptocurrency mining and the increasing attractiveness of Ethereum’s staking yield.

Ethereum developer and advocate Eric Conner noted the pivot on social media, tracing the timeline from the March 31 filing to the July 7 announcement and calculated a fourfold increase in the firm’s ETH stack within one quarter. He argued that staking yield turns corporate treasuries into self-funding engines, contrasting Bit Digital’s move with Strategy’s decision to remain exclusively in Bitcoin. Conner added that public company demand for Ether appears to outpace the network’s monthly issuance, citing recent treasury moves by fund manager Tom Lee and Consensys founder Joseph Lubin at the SharpLink board.