Ethereum News Today: Bit Digital Expands Share Capital to 1 Billion Shares to Stake 5% of Ethereum Supply

Bit Digital Inc., a Nasdaq-listed cryptocurrency services provider, has unveiled plans to expand its authorized share capital to 1 billion common shares, a move designed to fund an aggressive Ethereum (ETH) acquisition strategy. The proposal, pending shareholder approval at an extraordinary general meeting in September 2025, aligns with the company’s goal of staking 5% of the total Ethereum supply. This initiative builds on prior capital-raising efforts, including a $250 million private placement in June 2025 and a recent $67 million equity financing to accelerate ETH accumulation [1].

The capital increase aims to bolster Bit Digital’s position as one of the largest public holders of Ethereum, with current holdings valued at over $2 billion and totaling 566,776 ETH. The funds will be allocated to purchase additional ETH for staking, a strategy that generates yield by participating in Ethereum’s proof-of-stake (PoS) consensus mechanism. The company also plans to allocate resources to enhance operational infrastructure and secure mining hardware to support staking activities [2].

Analysts highlight that the move reflects growing institutional confidence in Ethereum’s PoS model, which incentivizes asset holders to lock up tokens for transaction validation. However, risks such as shareholder dilution from the new share issuance remain a concern. The success of Bit Digital’s strategy hinges on sustained ETH price stability and favorable regulatory developments, particularly as Ethereum anticipates upgrades like the Shanghai fork, which could enhance staking returns [3].

This expansion follows an earlier $10.1 million share capital increase in July 2025, underscoring the company’s long-term commitment to Ethereum. While no specific timeline has been outlined for achieving the 5% staking target, the aggressive capital-raising campaigns signal a strategic focus on Ethereum’s ecosystem. The outcome of the September vote will likely shape Bit Digital’s market position and its ability to execute its staking ambitions [4].

The proposal mirrors strategies adopted by other corporate entities in the crypto sector, such as MicroStrategy’s high-profile Ethereum investments. By leveraging equity financing to build a substantial ETH reserve, Bit Digital seeks to capitalize on Ethereum’s evolving market dynamics. The decision to expand share capital to 1 billion shares represents a significant step in a landscape where corporate Ethereum purchases have become increasingly prevalent.

Shareholders will cast their votes on the matter this fall, with the results expected to influence Bit Digital’s operational trajectory and its role in the broader Ethereum ecosystem.

Source:

[1] [Bit Digital seeks approval to issue 1B shares to fund its Ethereum strategy](https://cryptobriefing.com/bit-digital-ethereum-strategy-shares/)

[2] [Bit Digital plans to increase its authorized share capital to 1 billion common shares](https://www.panewslab.com/en/articles/xz1ipcfs)

[3] [Bit Digital Expands Share Capital to $10.1M, Acquires 19,683 ETH](https://www.ainvest.com/news/ethereum-news-today-bit-digital-expands-share-capital-10-1m-acquires-19-683-eth-67m-raise-2507/)

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