Bit Digital Surges 29% After Shifting $172 Million to Ether

Bit Digital, a digital asset company, has made a significant shift in its corporate treasury strategy by moving from Bitcoin to Ether. The company's decision reflects its belief in Ethereum's potential to revolutionize the financial system. Bit Digital utilized $172 million from a recent public offering and funds from the sale of 280 Bitcoin to acquire Ether. As of the end of the first quarter, Bit Digital held 24,434 ETH, which has since increased to 100,603 ETH. This strategic move has positioned Bit Digital as the second-largest corporate holder of ETH, trailing only Coinbase Global.

The company's stock, trading under the symbol BTBT, experienced a surge of more than 29% following the announcement, pushing its market capitalization back above $1 billion. Bit Digital's CEO, Sam Tabar, emphasized that the company is aligning itself with Ethereum's long-term potential and aims to become a focused Ethereum treasury platform in the public markets. The goal is to establish Bit Digital as the most preeminent ETH holding company globally.

Bit Digital's shift to Ether is part of a broader trend in corporate crypto treasury strategies, which have gained traction this year. However, most of the activity has been centered around accumulating and holding Bitcoin. In the past month, at least 21 entities have added BTC to their balance sheets, with Strategy being the largest corporate holder with 597,323 BTC. Some analysts have expressed concerns that the treasury strategy is becoming overplayed, particularly for companies lacking a strong underlying business or a clear plan for managing their BTC holdings.

Beyond Bitcoin, crypto treasury strategies are less common. One new company plans to raise $100 million to accumulate Binance’s BNB, mirroring Strategy’s Bitcoin treasury model. Institutional interest in Ethereum has been relatively muted, as seen in the inflows into ETH exchange-traded funds since their approval last year. However, there are signs that interest in Ethereum may be increasing, with US Ether funds recording inflows for seven consecutive weeks.