Bit Digital Shifts from Bitcoin Mining to Ethereum Staking

Bit Digital, Inc. (BTBT), a Nasdaq-listed cryptocurrency firm, has announced a significant strategic shift, transitioning from bitcoin mining to become a dedicated ethereum staking and treasury company. This move, disclosed on June 25, 2025, follows the company’s accumulation of ethereum (ETH) and staking infrastructure since 2022. Bit Digital plans to convert its existing bitcoin (BTC) holdings into ETH over time and cease all mining operations.

As of March 31, 2025, Bit Digital held 24,434.2 ETH valued at approximately $44.6 million and 417.6 BTC worth $34.5 million. All proceeds from BTC conversions and mining divestitures will be redirected toward expanding its ETH portfolio. The company has also initiated a strategic alternatives process for its global bitcoin mining operations, spanning the United States, Canada, and Iceland. This process is expected to result in the sale or wind-down of all mining assets.

Founded in 2015 and headquartered in New York City, Bit Digital previously operated high-performance computing infrastructure for bitcoin mining and artificial intelligence (AI) cloud services. It rebranded from Golden Bull Limited in 2020. While the company now focuses exclusively on ethereum-native strategies, it did not mention changes to its AI cloud strategies.

This strategic shift by Bit Digital reflects a broader trend in the cryptocurrency industry, where miners are increasingly exploring alternative revenue streams as the profitability of BTC mining fluctuates. The move to ETH staking aligns with the growing interest and investment in the staking market, which offers the potential for higher returns and more stable income streams. ETH staking, which involves holding ETH to support the network and earn rewards, has become an attractive option for many investors and miners.

The decision to focus on ETH staking also aligns with the broader shift in the cryptocurrency market towards proof-of-stake (PoS) mechanisms. PoS systems, used by ETH and other cryptocurrencies, offer a more energy-efficient alternative to the proof-of-work (PoW) systems used by BTC. This shift is driven by environmental concerns and the need for more sustainable blockchain technologies. By embracing ETH staking, Bit Digital is positioning itself as a forward-thinking company responsive to the changing needs and preferences of the market.

The transition from BTC mining to ETH staking presents challenges for Bit Digital. The company will need to navigate the complexities of setting up and managing a staking operation, including technical requirements and regulatory considerations. However, Bit Digital's experience in the cryptocurrency space and its established infrastructure should provide a solid foundation for this transition. The success of this pivot will depend on Bit Digital's ability to execute its strategy effectively and adapt to the dynamic nature of the cryptocurrency market.

In summary, Bit Digital's decision to sunset its BTC mining operations in favor of ETH staking is a strategic move that reflects the evolving landscape of cryptocurrency mining. By capitalizing on the growing opportunities in the staking market and embracing more sustainable blockchain technologies, Bit Digital is positioning itself for long-term success in the rapidly changing world of digital assets.