Bit Digital Shifts to Ethereum Staking, Stock Drops 3.69%

Bit Digital, a prominent player in the digital asset space, has announced a significant strategic shift, transitioning into a pure-play Ethereum staking and treasury company. This move involves a gradual exit from Bitcoin mining, a decision that has had an impact on the company's stock performance. As of March 31, 2025, Bit Digital held 24,434 ETH and 417 BTC, valued at $44.6 million and $34.5 million respectively. The company plans to convert all its Bitcoin holdings into Ethereum over time, solidifying its focus on staking and ETH-based treasury growth.

This strategic realignment is part of Bit Digital’s broader plan to prioritize passive income streams over energy-intensive mining operations. The company began accumulating Ethereum in 2022 and has since steadily increased its holdings. In addition to staking, Bit Digital is exploring high-performance computing, marking a departure from its original focus on mining.

The company expects to either sell off or wind down its mining assets, with any proceeds from this transition being reinvested into Ethereum. This move aligns with Bit Digital’s vision to become fully ETH-centric, leveraging the growing institutional interest in Ethereum staking post-Merge. Ethereum’s shift to proof-of-stake has made staking an attractive option, with companies able to earn 4–6.5% annually through staking rewards. The ability to secure the network while generating passive income is drawing more institutional interest toward Ethereum’s ecosystem.

Despite the strategic benefits, investors did not respond positively to the announcement. Bit Digital’s stock dropped 3.69% to $2.35 during Wednesday’s session and fell another 3.83% after hours to close at $2.26. The stock is now down nearly 25% year-to-date and 39% from its January peak. For the March quarter, Bit Digital reported an 18% year-over-year decline in net revenue and a sharp 240% drop in its net profit margin. Despite these financial pressures, the company acquired a $53 million facility in North Carolina to support its AI and HPC ambitions.

Bit Digital is now the third-largest public holder of Ethereum, following Coinbase and SharpLink Gaming. SharpLink has made headlines for acquiring $493 million worth of ETH in June 2025, now holding 188,478 ETH and becoming the largest public ETH holder globally. This institutional adoption of Ethereum underscores the growing interest in the cryptocurrency’s ecosystem, driven by the attractive staking rewards and the network’s security benefits.