Bit Digital Dumps Bitcoin for Ethereum, Boosts Holdings by 300%

Bit Digital, a Nasdaq-listed company, has made a significant shift in its treasury strategy by replacing Bitcoin with Ethereum as its primary digital asset. The company has sold all of its Bitcoin holdings and accumulated over 100,000 ETH, aiming to lead corporate Ethereum holdings globally. This move is part of a broader strategy to diversify its digital asset portfolio and capitalize on the growing institutional interest in Ethereum.

The decision to pivot from Bitcoin to Ethereum is a bold one, as it represents a significant change in the company's treasury management approach. By converting its entire treasury to Ethereum, Bit Digital is positioning itself as a leader in the institutional staking of Ethereum. This strategy not only aligns with the company's goal of diversifying its digital asset holdings but also reflects the growing interest in Ethereum among institutional investors.

Bit Digital recently announced it used $172 million from a public offering and the sale of 280 Bitcoin (BTC) to buy 100,603 Ethereum (ETH). This makes them one of the largest public companies to hold such a large amount of ETH. This is a huge jump from the 24,434 ETH they held at the end of the first quarter of 2025, showing more than a 300% increase. The company’s CEO, Sam Tabar, explained that Bit Digital plans to invest even more in Ethereum. He believes in Ethereum’s long-term potential and aims for Bit Digital to become the leading Ethereum holding company worldwide. This move follows an earlier announcement by the company last month about shifting from Bitcoin mining to an Ethereum-focused treasury.

Other companies are also showing increased interest in holding Ethereum. SharpLink Gaming is another major ETH treasury allocator, and BitMine recently announced plans to buy $250 million worth of ETH. This growing trend aligns with the rising popularity of stablecoins, which are digital currencies designed to maintain a stable value. Ethereum currently holds a 50% market share in the stablecoin sector. Experts believe that as banking and fintech companies launch more stablecoins, these firms will need to hold ETH or Solana (SOL) to cover transaction fees. They also anticipate that payment companies and e-commerce platforms will accumulate ETH and SOL for their operations. According to the analyst's forecast, the number of institutions holding ETH and SOL could increase ten times in the next year. This is further supported by recent data showing that Ethereum investment products have seen eleven consecutive weeks of strong inflows, indicating a notable shift in investor sentiment towards Ethereum.

The move to Ethereum is also a response to the increasing demand for digital assets in corporate treasuries. As more companies look to diversify their holdings and explore new investment opportunities, Ethereum has emerged as a popular choice due to its smart contract capabilities and growing ecosystem. By accumulating a large amount of ETH, Bit Digital is well-positioned to take advantage of this trend and potentially benefit from the appreciation of Ethereum's value over time.

The shift to Ethereum is also a strategic decision that reflects the company's long-term vision for its digital asset portfolio. By focusing on Ethereum, Bit Digital is able to leverage the network's unique features and capabilities, such as its smart contract functionality and decentralized applications (dApps) ecosystem. This allows the company to explore new opportunities for growth and innovation, while also positioning itself as a leader in the institutional staking of Ethereum.