Bit Digital (BTBT) Surges 7.22% on Ethereum Treasury Expansion and Bullish Options Flow

Summary
• Bit Digital’s Ethereum holdings hit $675M, cementing its status as a top-6 ETH holder
• Intraday price jumps 7.22% to $4.01, outpacing broader market moves
• Options data shows 2025-10-17 $4 call options trading at 20% price change with 12.97% leverage
• RSI at 70.76 signals overbought territory while MACD histogram trends upward

Bit Digital’s shares are surging on renewed optimism around its Ethereum treasury growth and strategic capital raises. With the stock trading at a 7.22% intraday gain, the move coincides with a $675M ETH valuation milestone and heavy call options buying ahead of the October 17 expiration. The blockchain sector’s mixed performance contrasts with BTBT’s outperformance, driven by institutional accumulation and bullish technicals.

Ethereum Treasury Expansion Fuels Institutional Optimism
Bit Digital’s 7.22% intraday rally is directly tied to its Ethereum holdings surging to $675M, a 26% increase from August’s $532.5M. This expansion, coupled with a $67M equity raise in July and a $135M upsized convertible note in August, has positioned the firm as a top-6 ETH holder. Analysts at Northland Securities and HC Wainwright have reiterated 'Buy' ratings, citing the company’s ability to leverage Ethereum’s staking yields and institutional-grade treasury management. The recent Q2 earnings report, which showed a $15M profit driven by digital asset gains, further solidified investor confidence.

Blockchain Sector Volatility Amid Bitcoin Miner Rally
The broader blockchain sector remains fragmented, with Riot Platforms (RIOT) rising 3.02% on Bitcoin miner optimism but underperforming BTBT’s 7.22% surge. While Bitcoin’s recent $114K surge has boosted miner sentiment, Bit Digital’s Ethereum-focused strategy is attracting distinct institutional attention. The company’s Ethereum holdings now represent ~121,252 ETH, or 2.66% of the total supply, creating a unique value proposition compared to Bitcoin-only miners. This divergence highlights the sector’s bifurcation between Bitcoin and Ethereum exposure.

High-Leverage Call Options and Overbought Technicals Signal Aggressive Play
• 200-day MA: $2.755 (well below current price)
• RSI: 70.76 (overbought)
• MACD: 0.189 (bullish) with 0.077 histogram expansion
• Bollinger Bands: Price at 3.69 (upper band) vs. 3.165 (middle band)

Technical indicators suggest a short-term overbought condition but strong momentum. The stock is trading above all major moving averages and within a bullish K-line pattern. For aggressive traders, the 2025-10-17 $4 call (BTBT20251017C4) and 2025-10-24 $4 call (BTBT20251024C4) offer compelling leverage. The October 17 contract has 12.97% leverage, 20% price change, and 0.55 delta, while the October 24 option provides 9.14% leverage with 50% price change and 0.56 gamma. Both contracts have high turnover (145k and 39k) and implied volatility above 112%, reflecting strong demand.

• BTBT20251017C4: Call, $4 strike, 2025-10-17 expiry, IV 112.61%, leverage 12.97%, delta 0.55, theta -0.0227, gamma 0.528, turnover $145k. High leverage and moderate delta position this as a short-term volatility play.
• BTBT20251024C4: Call, $4 strike, 2025-10-24 expiry, IV 123.88%, leverage 9.14%, delta 0.56, theta -0.0169, gamma 0.367, turnover $39k. Strong gamma and moderate IV make this ideal for a continuation of the current bullish trend.

Under a 5% upside scenario (target $4.21), the October 17 call would yield max payoff of $0.21/share, while the October 24 call would hit $0.21/share. Aggressive bulls should consider BTBT20251017C4 into a break above $4.07 (intraday high) or BTBT20251024C4 for a mid-week continuation play.

Backtest Bit Digital Stock Performance
Below is the interactive event-backtest report. Key takeaways (concise):1. 124 daily surges ≥ 7 % were detected between 2022-01-01 and 2025-10-08.2. Median post-event drift is modest (≈ +1.9 % after 30 trading days) and statistically insignificant across all horizons tested.3. Hit-rate (win-rate) hovers near 40 – 50 %, indicating no clear long-only edge immediately after such spikes.Parameter notes:• “Intraday surge” was approximated with close-to-close return ≥ 7 %. This is a common proxy when true intraday tick data are unavailable. • Back-test window and ticker were filled per your request; other settings kept at platform defaults (close price, entire period 2022-01-01 – 2025-10-08).You can inspect full distribution curves, cumulative abnormal returns and other details in the module.Feel free to drill into the charts and let me know if you’d like alternative thresholds, holding-period assumptions, or risk-control overlays.

Break Above $4.07 Could Trigger 15% Rally on Ethereum Staking Optimism
The current rally is underpinned by Ethereum’s institutional adoption and Bit Digital’s strategic capital raises, but sustainability depends on maintaining the $4.07 intraday high. A close above this level would validate the bullish K-line pattern and open the door to the 52-week high of $5.74. Traders should also monitor Riot Platforms (RIOT +3.02%) as a sector barometer. For those seeking leverage, the October 17 $4 call offers the highest reward-risk profile. Watch for a breakdown below $3.76 (intraday low) to trigger a reversal, but the immediate bias remains bullish on Ethereum’s staking narrative.