Bit Digital Shifts to Ethereum Staking Amid 64% Bitcoin Revenue Drop

Bit Digital, a prominent Bitcoin mining firm, has announced a significant strategic shift, transitioning from Bitcoin mining to focusing exclusively on Ethereum staking. This move is part of the company's plan to become a "pure play" ETH staking and treasury company. The decision comes after the firm reported a 64% decrease in revenue from Bitcoin mining in the first quarter of 2025 compared to the previous year. The company earned only 83.3 Bitcoin during this period, marking an 80% decrease from the prior year.

Bit Digital's pivot to Ethereum staking is driven by the declining profitability of Bitcoin mining, particularly following the April 2024 halving event. The company has been accumulating ETH and operating staking infrastructure since 2022, steadily increasing its holdings. As of March 2025, Bit Digital held 24,434.2 ETH and 417.6 BTC. The firm intends to convert its BTC holdings into ETH over time, aligning with the growing traction of Ethereum in the crypto ecosystem.

In addition to its strategic shift, Bit Digital has announced plans to sell its Bitcoin mining assets and redeploy the net proceeds into ETH. The company also plans to sell shares to use the net proceeds for Ethereum purchases. An underwritten public offering of its ordinary shares has been announced, with B. Riley Securities acting as the book-running manager.

Despite the strategic developments, the news of the pivot to ETH staking has stirred investor concerns, leading to an 8% drop in the company's stock. The stock initially fell 3.7% at close on Wednesday and was further down another 4.3% in after-hours trading. The New York-based firm’s stock has a $488 million market cap.