Ethereum News Today: Bit Digital Expands Share Capital to 1 Billion Shares to Fund Ethereum Staking Expansion

Bit Digital Inc., a Nasdaq-listed cryptocurrency infrastructure and investment firm, has announced plans to increase its authorized share capital from 340 million to 1 billion shares to fund its Ethereum (ETH) acquisition strategy. The move, detailed in a preliminary proxy statement and multiple reports, underscores the company’s commitment to expanding its ETH holdings and staking operations [1]. The proposed capital raise, pending shareholder approval in September, aims to enable Bit Digital to pursue its goal of acquiring and staking 5% of the total Ethereum supply, a target previously outlined in public filings and social media updates [1].

The company has already raised $67 million through equity financing in July 2025 to advance its Ethereum accumulation [2]. Earlier in June 2025, Bit Digital secured $250 million via a private placement of 55.6 million shares at $4.50 per share, further accelerating its ETH purchase strategy [3]. These funding rounds align with the firm’s broader vision to position itself as a major player in Ethereum’s institutional adoption, a strategy that has drawn comparisons to MicroStrategy’s stockpiling approach [4].

Current Ethereum holdings, valued at over $2 billion, include 566,776 ETH, with the company having already surpassed earlier benchmarks such as acquiring 300,657 ETH worth roughly $1 billion [5]. Analysts note that the capital expansion could amplify the firm’s market influence, particularly as Ethereum’s staking rewards and network upgrades continue to attract institutional interest [6]. The proposed 1 billion-share increase will expand Bit Digital’s financial flexibility to execute large-scale ETH purchases, supporting its role as one of the largest public ETH holders.

The Ethereum-focused approach is critical for Bit Digital, which has positioned itself as a bridge between traditional finance and crypto markets. By staking ETH, the firm aims to generate passive income while contributing to Ethereum’s security and decentralization. This strategy aligns with Ethereum’s transition to a proof-of-stake model, which has increased demand for institutional-grade staking infrastructure. The company emphasized in its proxy statement that it intends to raise “substantial additional equity financing” in the near term to sustain its growth trajectory [7].

Sources indicate that the company’s aggressive capital expansion has already begun yielding results, with Ethereum holdings growing significantly in recent months. For instance, in July 2025, Bit Digital expanded its share capital to raise $10.1 million specifically for ETH accumulation, a step that underscores its confidence in the asset’s long-term potential [8]. The proposed 1 billion-share increase highlights the evolving landscape of crypto equities, as companies increasingly blend traditional financing with blockchain-native strategies to capitalize on digital assets.

The market response to the move remains to be seen, but it reflects a broader trend among publicly traded crypto firms leveraging equity financing to scale blockchain investments. While the strategy positions Bit Digital to benefit from Ethereum’s institutional adoption, it also raises questions about shareholder dilution and long-term value creation. The firm’s approach underscores the growing interplay between traditional financial systems and emerging crypto infrastructure, signaling a shift in how institutional players are integrating digital assets into their portfolios.

Source:

[1] [Bit Digital Preliminary Proxy Statement](https://www.stocktitan.net/sec-filings/BTBT/pre-14a-bit-digital-inc-preliminary-proxy-statement-c3e853f1abff.html)

[2] [AInvest News](https://www.ainvest.com/news/ethereum-news-today-bit-digital-expands-share-capital-10-1m-acquires-19-683-eth-67m-raise-2507/)

[3] [WuBlockchain Weekly](https://wublock.substack.com/p/wublockchain-weekly-ethereum-micro)

[4] [FourPillarsFP Twitter Post](https://x.com/FourPillarsFP/status/1948700911955837166)

[5] [Reddit Post on BitMine Holdings](https://www.reddit.com/r/CryptoCurrency/comments/1m983te/bitmine_now_holds_over_2_billion_worth_of/)

[6] [Coinpedia](https://coinpedia.org/crypto-live-news/bit-digital-plans-to-increase-share-capital-to-1-billion-for-ethereum-expansion/)

[7] [StockTitan SEC Filings](https://www.stocktitan.net/sec-filings/BTBT/pre-14a-bit-digital-inc-preliminary-proxy-statement-c3e853f1abff.html)

[8] [AInvest News](https://www.ainvest.com/news/ethereum-news-today-bit-digital-expands-share-capital-10-1m-acquires-19-683-eth-67m-raise-2507/)