Bit Digital Shifts Entire Treasury to Ethereum, Shares Jump 20%

Bit Digital, a Nasdaq-listed company, has made a significant strategic shift by converting its entire treasury holdings from Bitcoin to Ethereum. The company sold 280 BTC and redirected all proceeds into Ethereum, marking a substantial pivot in its digital asset strategy. Additionally, Bit Digital raised $172 million through a public offering, using the entire sum to bolster its Ethereum position. This move has increased its total Ethereum holdings to over 100,000 ETH, making it one of the largest corporate holders of Ethereum overnight.

The decision to shift from Bitcoin to Ethereum was driven by several factors, including Ethereum's flexibility, staking capabilities, and its role in reshaping financial infrastructure. Bit Digital's CEO, Sam Tabar, highlighted Ethereum's smart contracts and staking features as key reasons for the switch. The company is now rebranding itself as a dedicated Ethereum treasury entity within the public market landscape.

Investors responded positively to the announcement, with the company's shares jumping nearly 20% in a single session, pushing weekly gains above 60%. This dramatic shift places Bit Digital in direct competition with other publicly traded firms, such as SharpLink Gaming, which is also aggressively building an Ethereum treasury. The move is part of a broader trend where corporations are increasingly looking beyond Bitcoin for blockchain-native financial infrastructure.

Traditional Bitcoin-focused firms like BitMine are following suit, with BitMine raising $250 million to build its own ETH reserve. Ethereum co-founder Joseph Lubin recently commented on the movement, predicting a wave of DeFi integration on Wall Street fueled by such corporate shifts. 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.

The timing of Bit Digital’s pivot is bold and may prove pivotal as companies increasingly look beyond Bitcoin for blockchain-native financial infrastructure. This strategic move not only positions Bit Digital as a leader in the Ethereum treasury space but also sets a precedent for other corporations considering similar shifts in their digital asset strategies.