Ethereum News Today: Bit Digital Expands Share Capital 196.5% to Fund $67M Ethereum Accumulation

Bit Digital Inc. (NASDAQ: BTBT) has initiated a strategic expansion of its authorized share capital to support its Ethereum (ETH) accumulation efforts, as disclosed in a recent SEC filing. The company plans to increase its ordinary shares from 340 million to 1 billion, raising authorized share capital from $3.5 million to $10.1 million, while keeping preference shares capped at 10 million. This move requires approval at a shareholder meeting scheduled for September and is backed by a unanimous board recommendation. The expansion aims to fund large-scale ETH purchases, aligning with the firm’s shift from Bitcoin to Ethereum treasury as a core asset [3].

The firm’s recent $67 million follow-on equity offering, executed alongside the share capital announcement, underscores its liquidity-focused approach. This funding enabled the acquisition of 19,683 ETH tokens for $67.3 million, increasing its total ETH holdings to 120,306 tokens [6]. The strategy mirrors broader industry trends, with competitors like BitMine and SharpLink also expanding their ETH treasuries [8]. However, Bit Digital differentiates itself through aggressive capital allocation, including a $150 million equity raise in July 2025. Analysts suggest the expanded capital structure may attract institutional investors seeking exposure to Ethereum’s long-term growth, particularly as the token’s market cap and DeFi adoption rise [6].

Timing is critical for the strategy’s success. Ethereum’s spot trading volume recently surpassed Bitcoin’s for the first time in over a year, reflecting shifting investor sentiment. On-chain data also shows 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, the company has not disclosed specific ETH accumulation targets, leaving execution risks tied to market volatility and regulatory scrutiny [6].

The capital-raising measures have already impacted Bit Digital’s stock performance, with shares surging following the $67 million offering, signaling investor confidence in its capital deployment strategy. 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’s dual focus on capital appreciation and Ethereum’s utility as a staking asset further differentiates it from peers.

The company’s strategy aligns with Ethereum’s recent upgrades and its position as the second-largest cryptocurrency by market cap. While the crypto market’s volatility—evidenced by speculative token losses and fund collapses—poses risks, Bit Digital’s approach is anchored in Ethereum’s more stable ecosystem. Its success will depend on executing capital plans and sustaining ETH purchases in a competitive landscape. Investors and industry peers will closely monitor its progress as the crypto market 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 [11] Reference to Tesla’s Bitcoin holdings is implied but not explicitly sourced in the provided content.