Ethereum News Today: Bit Digital's Ethereum Staking Pivot Yields 3.37% Annualized Returns

Bit Digital, Inc. (Nasdaq: BTBT) has significantly expanded its Ethereum (ETH) holdings, reaching $673 million in total value as of September 30, 2025, according to the company's latest report. The firm now holds approximately 122,187 ETH, a figure that includes 15,075 ETH and ETH-equivalents in an externally managed fund and 5,142 ETH converted from liquid staking tokens (LsETH) using Coinbase's rate. At the closing price of $4,145.99 per ETH, the market value of these holdings represents a 32% increase from the $506.6 million reported in early September. The company acquired an additional 653 ETH during the month, bringing its total average acquisition cost to $2,643.27 per ETH, a 57% discount to the current price.

A significant portion of Bit Digital's ETH is staked, with 99,936 ETH (81.8% of total holdings) allocated to staking operations. These efforts generated 291 ETH in rewards during September, equivalent to an annualized yield of 3.37%. The staking strategy, which includes liquid staking protocols, underscores the company's focus on maximizing returns through active validator operations and institutional-grade custody. Bit Digital's staking infrastructure now ranks among the largest in the Ethereum ecosystem, reflecting its position as a key player in the institutional staking market.

The firm's aggressive Ethereum accumulation is supported by a $150 million convertible notes offering completed after September 30, 2025. The proceeds, which include the full exercise of the underwriters' over-allotment option, are earmarked for further ETH purchases. This follows a $135 million convertible notes offering announced earlier in the month, with terms structured to provide 4.00% interest and a maturity date of 2030. The dual funding rounds highlight Bit Digital's strategic reliance on structured debt to scale its digital asset exposure, a trend observed among other publicly traded crypto firms like Coinbase, which raised $2 billion in similar offerings.

Bit Digital's Ethereum-centric strategy has driven investor optimism, with its shares rising 6.32% in early October 2025. The company's transition from Bitcoin mining to Ethereum staking has been framed as a calculated pivot toward long-term profitability, leveraging staking rewards to bolster financial performance. For instance, Q2 2025 saw a turnaround from a $0.09 loss per share to a $0.07 gain, despite a slight revenue dip to $25.7 million. The firm's price-to-sales ratio of 16.15 and its shift from liabilities to equity-driven growth have further reinforced market confidence.

The company's financial structure also includes a 71.5% stake in WhiteFiber (WYFI), totaling 27 million shares as of September 30. However, the primary focus remains on Ethereum, with the CEO emphasizing the long-term vision of sustained profitability through alt-coin exposure. The decision to stake rather than passively hold ETH reflects an active engagement model, aligning with broader industry trends toward yield optimization. Analysts note that Bit Digital's transparency and consistent returns have bolstered trader trust, positioning it favorably against competitors in the blockchain sector.