Ethereum News Today: Bit Digital Expands Shares 285x to 1B to Fund Ethereum Staking as Demand Surges 32x Supply

Bit Digital Inc. (BTBT) is set to seek shareholder approval for a 285-fold expansion of its authorized shares to 1 billion, aiming to fund a strategic shift toward Ethereum (ETH) accumulation. The proposal, to be decided at a September 10, 2025, shareholder meeting in New York, includes a direct offering of 22 million ordinary shares at $3.06 each, raising $67.3 million [6]. This capital increase will support the company’s pivot from bitcoin mining to Ethereum staking and high-performance computing (HPC) services. The move aligns with broader institutional trends, as firms increasingly allocate resources to the second-largest cryptocurrency [2]. Bit Digital has already liquidated Bitcoin reserves to acquire over 100,000 ETH, reflecting a strategic preference for Ethereum’s utility and staking potential [11].

The company’s WhiteFiber subsidiary, a key player in Ethereum staking and cloud infrastructure, is central to this strategy. WhiteFiber’s transition to a pure-play ETH staking and treasury model includes redeploying capital from bitcoin mining into Ethereum assets. With 24,434 ETH currently staked at a 3.2% yield, the firm generates recurring revenue while leveraging its $98.9 million in cash and equivalents, alongside $260.7 million in total liquidity [10]. Analysts from Coincu suggest the capital increase could strengthen Bit Digital’s market position, enabling streamlined equity financing and aligning with Ethereum’s growing institutional appeal [11].

Bit Digital’s strategic realignment is supported by strong financial performance. Total revenue surged 141% year-over-year to $108.1 million in 2024, with HPC/cloud services contributing $45.7 million (42% of revenue), while bitcoin mining and Ethereum staking added $58.6 million and $1.8 million respectively [10]. The shift from energy-intensive bitcoin mining to Ethereum’s staking model and cloud infrastructure aims to capitalize on Ethereum’s role in decentralized finance (DeFi) and smart contracts. Market data indicates Ethereum demand is 32x higher than supply, driven by its utility in financial services and tech infrastructure [11].

However, the strategy faces execution risks. Regulatory uncertainties surrounding crypto tax treatment and competition from cloud giants like AWS and CoreWeave could challenge Bit Digital’s growth [10]. Additionally, short-term hurdles include elevated bitcoin mining difficulty and potential delays in asset divestitures. Despite a 12-month stock decline of 4.3%, analysts maintain a “Strong Buy” rating with an average price target of $6.33, representing 63% upside [10]. Institutional interest has grown since the WhiteFiber rebrand, though macroeconomic factors like crypto price volatility and regulatory shifts remain critical risks [10].

Bit Digital’s pivot underscores a broader trend of corporate Ethereum adoption. By prioritizing Ethereum’s staking yields and recurring revenue model over bitcoin mining, the firm positions itself to benefit from the cryptocurrency’s ongoing integration into financial and technological ecosystems. Upcoming catalysts include Q2 2025 earnings, the WhiteFiber IPO timeline, and regulatory updates on the GENIUS Act, which could influence the company’s trajectory in the competitive crypto and cloud infrastructure markets [10].

Source:

[1] [Bit Digital boosts authorized shares 285x to 1B to fund Ethereum accumulation](https://www.ainvest.com/news/ethereum-news-today-bit-digital-boosts-authorized-shares-285x-1b-fund-ethereum-accumulation-2507/)

[2] [Companies are now adding Ethereum to balance sheets](https://finance.yahoo.com/news/its-not-just-bitcoin-companies-are-now-adding-ethereum-to-their-balance-sheets-180227397.html)

[6] [Bit Digital raises $67.3M via direct offering](https://www.webopedia.com/crypto/learn/ethereum-treasury/)

[10] [Bit Digital Asset Snapshot](https://finimize.com/content/btbt-asset-snapshot)

[11] [Ethereum demand surges 32x beyond supply](https://bitcoinist.com/ethereum-demand-surges-32x-beyond-supply-bitwise/)