Ethereum News Today: Bit Digital Expands Share Capital to $10.1M, Acquires 19,683 ETH in $67M Raise

Bit Digital Inc. (NASDAQ: BTBT) has announced plans to significantly expand its authorized share capital to support its strategic shift toward Ethereum (ETH) accumulation. The company filed a preliminary proxy statement with the SEC on July 19, 2025, revealing intentions to increase its ordinary share authorization from 340 million to 1 billion, raising the total share capital from $3.5 million to $10.1 million. Preference shares will remain capped at 10 million. The proposal, requiring approval from a majority of ordinary and preference shareholders, is set for a vote at a key shareholder meeting in September [3]. The board has unanimously endorsed the move, citing the need for additional capital to scale Ethereum treasury growth [1].

The company has already demonstrated its aggressive capital allocation strategy in July 2025. Bit Digital raised $67 million via a follow-on equity offering and simultaneously acquired 19,683 ETH tokens, valued at $67.3 million, bringing its total Ethereum holdings to 120,306 tokens [6]. These actions align with a broader industry trend of firms prioritizing Ethereum over Bitcoin, with competitors like SharpLink expanding their ETH treasuries [8]. Bit Digital differentiates itself through large-scale purchases and a focus on Ethereum’s staking utility, leveraging its second-largest market cap position and ongoing network upgrades [6].

Analysts suggest the expanded capital structure could attract institutional investors seeking long-term Ethereum exposure, particularly as spot trading volume for ETH has outperformed Bitcoin and institutional buying remains robust [7]. However, the strategy faces risks, including regulatory scrutiny and market volatility. The company has not disclosed specific ETH accumulation targets or a timeline for capital deployment [6].

The recent equity offering has already impacted Bit Digital’s stock, with shares surging post-announcement, reflecting investor confidence in its capital deployment plan [6]. The expanded share authorization is expected to enhance liquidity, enabling more aggressive ETH purchases while maintaining operational flexibility. This approach mirrors strategies employed by peers such as The Ether Machine (ETHM), which aims to become the largest public Ethereum holder [2].

Bit Digital’s pivot to Ethereum underscores a strategic bet on the token’s smart contract and DeFi ecosystems. Despite the crypto market’s volatility—highlighted by recent speculative token losses and fund collapses—the firm’s strategy emphasizes Ethereum’s relative stability compared to Bitcoin [7]. By prioritizing Ethereum, Bit Digital positions itself to capitalize on the asset’s growth trajectory, provided it navigates regulatory challenges and maintains liquidity. Investors and industry peers will closely monitor the company’s execution of its capital plans and Ethereum accumulation targets as the crypto landscape evolves [6].

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