Bit Digital Plunges 11.06% on Ethereum Shift

On June 26, 2025, Bit Digital experienced a significant drop of 11.06% in pre-market trading, reflecting a notable shift in investor sentiment towards the company.

Bit Digital recently announced a public offering of 75 million ordinary shares at $2.00 per share, aiming to raise $150 million in gross proceeds. The company plans to use the net proceeds to purchase Ethereum, signaling a strategic shift towards a crypto treasury strategy. This move is expected to significantly increase the company's outstanding share count, potentially leading to substantial dilution for existing shareholders.

The offering includes a 30-day option for underwriters to purchase an additional 11.25 million shares, with B. Riley Securities serving as the sole bookrunning manager. This capital deployment strategy ties the company's fortunes more directly to Ethereum price movements, potentially increasing volatility in Bit Digital's financial performance and stock price.

Bit Digital has also announced plans to wind down its Bitcoin mining operations, further emphasizing its focus on Ethereum. The company's strategic shift towards Ethereum acquisition is part of a broader plan to spin out its wholly-owned subsidiary, Bit Digital Mining, and focus on its core cryptocurrency investment strategy.