Bit Digital Raises $150 Million to Shift from Bitcoin Mining to Ethereum Staking

Bit Digital, a prominent Bitcoin mining firm, has made a significant strategic shift by raising $150 million through a public offering. This move is aimed at transitioning from Bitcoin mining to Ethereum staking and treasury asset management. The funds will be used to acquire Ethereum, marking one of the largest public commitments to ETH by a Nasdaq-listed company. This decision was formalized on June 26, 2025, and reflects a growing trend among crypto firms that are betting on Ethereum’s proof-of-stake ecosystem.

Bit Digital currently holds approximately 24,434 ETH and 418 BTC as of March 31. The company plans to phase out its Bitcoin mining operations entirely, converting its BTC holdings into ETH over time. This decision comes amid tightening mining economics, which have been exacerbated by rising energy costs and a recent U.S. ban on new crypto mining data centers in energy-stressed regions. Ethereum staking, which offers a 4-6% annual yield, presents a more predictable revenue stream compared to the volatile mining landscape.

This pivot underscores Ethereum’s rising institutional appeal. The on-chain total value locked (TVL) reached $50 billion by mid-2025, driven by scalability upgrades like sharding and $10 billion in tokenized real-world assets. Despite a 50% drop in the ETH/BTC price ratio since 2024, Bit Digital is doubling down on its investment in Ethereum, positioning itself as a key player in the staking ecosystem. The move also aligns with its confidential IPO filing for its high-performance computing subsidiary, WhiteFiber Inc., hinting at broader ambitions in AI and blockchain infrastructure.

While some users on X have criticized the shift as a departure from Bitcoin’s decentralized roots, others see it as a smart adaptation to market dynamics. As Ethereum’s ecosystem continues to evolve, Bit Digital’s bold bet could redefine its role in the crypto industry. The company’s decision to focus on Ethereum staking and treasury asset management reflects a strategic response to the changing landscape of the crypto market, where Ethereum’s proof-of-stake model offers a more stable and predictable revenue stream compared to Bitcoin mining.