Ethereum News Today: Bit Digital boosts authorized shares 285x to 1B to fund Ethereum accumulation

Bit Digital Inc. (NASDAQ: BTBT) has announced a strategic initiative to enhance its Ethereum (ETH) holdings by expanding its authorized share capital to 1 billion ordinary shares, a substantial increase from its previous limit of 3.5 million. The proposal, approved by the Board of Directors on July 25, 2025, awaits shareholder approval and is intended to facilitate further capital raising to scale ETH accumulation [3]. This move follows the company’s recent acquisition of 19,683 ETH tokens for $67.3 million, raising its total holdings to 120,306 tokens [1]. The firm also completed a $67 million follow-on equity offering on the same day, signaling its commitment to maintaining liquidity while pursuing Ethereum exposure [6].

The decision aligns with a broader industry trend of firms prioritizing Ethereum as a core asset. Competitors like BitMine and SharpLink have similarly expanded their ETH treasuries [8], but Bit Digital’s approach is distinguished by aggressive capital allocation. The company’s July 2025 $150 million equity raise, combined with the new share authorization, positions it to continue large-scale ETH purchases. Analysts suggest the expanded capital structure may attract institutional investors seeking long-term Ethereum growth, particularly as the token’s market cap and DeFi adoption rise [6].

Timing is critical for the strategy. Ethereum’s spot trading volume recently outpaced Bitcoin’s for the first time in over a year, reflecting shifting investor sentiment [7]. On-chain data also indicates sustained institutional buying, with entities acquiring over 43,591 ETH in recent hours. Bit Digital’s purchases align with this trend, reinforcing Ethereum’s role in the crypto ecosystem. However, risks such as regulatory scrutiny and market volatility remain, though the company has not disclosed specific ETH accumulation targets [6].

The capital-raising measures have already influenced Bit Digital’s stock performance. Shares surged after the $67 million follow-on offering, reflecting investor confidence in the firm’s capital deployment strategy [6]. The expanded share authorization could enhance liquidity, enabling more aggressive ETH purchases while maintaining operational flexibility. Competitors like The Ether Machine (ETHM) are pursuing similar goals, aiming to become the largest public Ethereum holders [2]. Bit Digital differentiates itself through its dual focus on capital appreciation and Ethereum’s utility as a staking asset.

The company’s strategy mirrors broader industry dynamics, including Tether’s institutional expansion and Tesla’s $1.2 billion Bitcoin holdings [11]. Bit Digital’s emphasis on Ethereum over Bitcoin highlights a strategic bet on the token’s smart contract and DeFi use cases, supported by its recent upgrades and second-largest market cap position. However, the crypto market’s volatility—evidenced by speculative token losses and fund collapses—underscores the risks of concentrated holdings [7]. Bit Digital’s approach, however, is anchored in Ethereum’s more stable ecosystem, with its success dependent on executing capital plans and sustaining ETH purchases in a competitive landscape.

By increasing its authorized share capital, Bit Digital aims to strengthen its Ethereum position and capitalize on the token’s growth trajectory. The firm’s ability to navigate regulatory challenges and maintain liquidity will be pivotal in determining its long-term viability as a major Ethereum holder. Investors and industry peers will closely monitor its progress as the crypto market continues to evolve.

Sources:

[1] MSN. (2025, July 24). Should you buy ETH and this cheap altcoin as Bit Digital acquires 19,683 ETH. https://www.msn.com/en-us/money/news/should-you-buy-eth-and-this-cheap-altcoin-as-bit-digital-acquires-19683-eth/ar-AA1J0OIz

[2] Seeking Alpha. (2025, July 24). Via SPAC Merger, Dynamix Is Becoming 'The Ether Machine'. https://seekingalpha.com/article/4803897-via-spac-merger-dynamix-becoming-the-ether-machine

[3] Stock Titan. (2025, July 19). [PRE 14A] Bit Digital, Inc. Preliminary Proxy Statement. https://www.stocktitan.net/sec-filings/BTBT/pre-14a-bit-digital-inc-preliminary-proxy-statement-c3e853f1abff.html

[6] Simply Wall Street. (2025, July 25). Bit Digital (BTBT) Raises US$67 Million in Follow-On Equity Offering. https://simplywall.st/stocks/us/software/nasdaq-btbt/bit-digital/news/bit-digital-btbt-raises-us67-million-in-follow-on-equity-off

[7] PANews. (2025, July 25). Important information from last night and this morning (July .... https://www.panewslab.com/en/articles/efvvv9r2

[8] Mitrade. (2025, July 24). In a First for the Industry, SharpLink Buys Almost .... https://www.mitrade.com/au/insights/news/live-news/article-8-983589-20250724

[11] Reference to Tesla’s Bitcoin holdings is implied but not explicitly sourced in the provided content.