Bit Digital Shifts $172 Million from Bitcoin to Ethereum, Shares Jump 20%

Bit Digital, a Nasdaq-listed cryptocurrency mining and digital asset services provider, has made a significant shift in its treasury strategy by completely replacing Bitcoin with Ethereum. The company sold off all of its remaining Bitcoin holdings, raising $172 million, and acquired over 100,000 Ethereum. This move positions Bit Digital as one of the largest public holders of Ethereum, marking a strategic pivot towards the second-largest cryptocurrency by market capitalization.

The company has not only sold off its remaining BTC reserves but has also made a massive leap in ETH accumulation, signaling a strategic pivot toward what it sees as the future of programmable finance. According to a recent announcement, Bit Digital sold 280 BTC and redirected all proceeds into Ethereum. Its total Ethereum holdings now exceed 100,000 ETH, a jump from just over 24,000—a move that has made Bit Digital one of the largest corporate ETH holders overnight.

The firm cited Ethereum’s flexibility, staking capabilities, and role in reshaping financial infrastructure as key reasons behind the switch. With its new direction, Bit Digital is rebranding itself as a dedicated Ethereum treasury entity within the public market landscape. This pivot is part of a broader trend that’s starting to reshape how corporations approach digital asset strategies. Traditional Bitcoin-focused firms like BitMine are following suit, with BitMine raising $250 million to build its own ETH reserve and bringing in Tom Lee to chair its board. Ethereum co-founder Joseph Lubin recently commented on the movement, predicting a wave of DeFi integration on Wall Street fueled by such corporate shifts.

Investors responded quickly to the announcement. The company’s shares jumped nearly 20% in a single session, pushing weekly gains above 60%. The dramatic shift also places Bit Digital in direct competition with SharpLink Gaming, another publicly traded firm aggressively building an Ethereum treasury. While Ethereum adoption in the treasury space is accelerating, market volatility persists. ETH prices have seen a slight decline, possibly linked to concerns over a recent transfer of Ethereum to Coinbase by a U.S. government wallet.

Still, the timing of Bit Digital’s pivot is bold—and may prove pivotal—as companies increasingly look beyond Bitcoin for blockchain-native financial infrastructure. The decision to transition from Bitcoin to Ethereum reflects a broader trend in the cryptocurrency market, where Ethereum's smart contract capabilities and growing ecosystem have attracted increasing interest from institutional investors. By embracing Ethereum, Bit Digital aims to leverage the platform's potential for decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and other innovative use cases. This shift also aligns with the company's long-term vision of diversifying its digital asset portfolio and enhancing its competitive position in the rapidly evolving cryptocurrency landscape.

Bit Digital's move to Ethereum is not without risks, as the cryptocurrency market is known for its volatility. However, the company's strategic decision to sell all of its Bitcoin holdings and invest in Ethereum demonstrates a strong conviction in the future of the Ethereum ecosystem. This bold move could potentially set a precedent for other companies in the industry, encouraging them to explore similar strategies to capitalize on the growing opportunities in the Ethereum market.