Bit Digital Dumps Bitcoin for Ethereum, Holds 100,603 ETH Worth $254.8 Million

Bit Digital has made a significant strategic shift by exiting its Bitcoin holdings and building a substantial Ethereum treasury. The company has sold all of its Bitcoin and acquired over $192 million worth of Ethereum. This move follows a public equity raise of $172 million and the complete liquidation of its Bitcoin holdings, which amounted to approximately 280 Bitcoin valued at $28 million. As a result, Bit Digital now holds 100,603 ETH, with its total Ethereum holdings valued at $254.8 million.

This strategic pivot reflects a growing institutional trust in Ethereum's programmability and yield-bearing capabilities. CEO Sam Tabar highlighted that Ethereum's programmability, staking yield, and increasing adoption were key factors in the decision to shift away from Bitcoin mining. The company aims to become the "preeminent Ethereum holding company" by adding even more ETH to its treasury. This shift is part of a broader strategy focused on yield and smart contract infrastructure, as evidenced by the over $560,000 in staking revenue generated from its initial 24,434 ETH holdings in Q1 2025.

Bit Digital's confidence in Ethereum is further demonstrated by its decision to double down on its ETH holdings despite a halving of the exchange rate from 0.048 BTC per ETH in June 2024 to 0.023. This move signals a strong conviction in Ethereum's future potential. The company's aggressive accumulation of ETH aligns with its strategy to leverage Ethereum's yield and smart contract capabilities.

Bit Digital is not the only firm making this shift. Sharplink Gaming recently adopted an Ethereum treasury model, now holding 188,478 ETH worth $457 million, making it the world's largest public ETH holder. Additionally, Ethereum ETFs are experiencing strong inflows, with BlackRock's iShares Ethereum Trust logging 23 straight days of gains and Fidelity adding over $21 million into ETH funds. Over 35 million ETH are now staked, locking up 28% of the supply. Ethereum's smart contracts and staking returns offer a more attractive value proposition compared to Bitcoin's static design, driving firms like Bit Digital and Sharplink to reallocate their treasuries from Bitcoin to Ethereum.