Bit Digital Raises $163 Million for Ethereum Shift Amid Bitcoin Mining Decline

Bit Digital, a Nasdaq-listed company, has completed a $163 million equity raise to purchase
, marking a significant shift from its previous mining operations. This move is part of a broader strategy to become a "pure play" staking operation, focusing entirely on Ethereum. The underwritten public offering, led by B. Riley Securities, closed on July 1, with underwriters exercising their full option to purchase additional shares, resulting in total proceeds of approximately $162.9 million after fees.The company's revenue from Bitcoin mining has declined significantly, dropping by 64% in Q1 2025 compared to the previous year. Earnings from Bitcoin mining amounted to just 83.3 Bitcoin during the quarter, representing an 80% decline from the prior year’s levels. Bitcoin mining now accounts for only 31% of their total revenue, down from 72% in the same quarter last year.
Bit Digital began accumulating ETH and building staking infrastructure in 2022, positioning itself ahead of a broader institutional trend toward Ethereum treasury strategies. As of March 2025, the company held 24,434.2 ETH, valued at approximately $44.6 million, alongside 417.6 BTC, worth $34.5 million. The company plans to convert its Bitcoin holdings into Ethereum over time.
The April 2024 Bitcoin halving event, combined with increased network difficulty, made mining operations increasingly unprofitable.
now operates approximately 21,568 ETH in native staking protocols, earning 211 ETH in staking rewards during Q1 2025 alone, a 72% increase from the previous year. Their cloud services revenue also surged 84% year-over-year to $14.8 million, demonstrating the company’s successful diversification beyond traditional crypto mining operations.Company executives have initiated a strategic alternatives process for their Bitcoin mining assets, with proceeds from all sales to be redeployed into additional ETH purchases. This move is part of a broader accelerating institutional adoption of Ethereum as a corporate treasury asset, following similar strategies deployed by other public companies throughout 2025.
SharpLink Gaming became the world’s largest publicly traded Ethereum holder in June, accumulating 188,478 ETH worth approximately $457 million through aggressive buying campaigns.
Technologies recently raised $250 million in a private placement specifically for Ethereum purchases, sending its stock price up 511% in a single trading session. Healthcare technology firm also adopted Ethereum as its primary treasury asset, becoming the first Nasdaq-listed healthcare company to implement such a strategy.Institutional investors appear to be gravitating toward Ethereum’s staking capabilities due to its promising yield on treasury holdings. Thomas Lee of Fundstrat Global Advisors, who recently joined BitMine’s board, described Ethereum as a “higher beta” asset than Bitcoin due to its foundational role in stablecoin transactions and decentralized finance applications. Stablecoin transaction volume, which primarily occurs on Ethereum’s network, could drive significant demand for ETH as the market grows from its current value of $250 billion to $2 trillion by 2028, according to projections from the U.S. Treasury.
Bit Digital’s $163 million commitment comes as Ethereum consolidates between $2,400 and $2,800, following an 80% surge from April lows that attracted institutional attention and validated corporate treasury strategies focused on the world’s second-largest cryptocurrency. This strategic shift underscores the growing institutional momentum behind Ethereum treasury strategies, as more companies recognize the potential of Ethereum’s staking capabilities and its role in the broader cryptocurrency ecosystem.

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