Ethereum News Today: Bit Digital to Increase Shares by 194.1% to Support Ethereum Growth Strategy

Bit Digital Inc. (NYSE American: BTBT) has announced plans to hold a shareholder meeting on September 10, 2025, to seek approval for a significant increase in its authorized share capital. The proposal, detailed in filings and board statements, aims to raise the number of common shares from 340 million to 1 billion, with a par value of $0.01 per share [1]. This adjustment would expand the total authorized capital from $3.5 million to $10.1 million, while maintaining 10 million preferred shares [2]. The company emphasized that the move is intended to provide financial flexibility for strategic initiatives, including potential Ethereum (ETH) acquisitions, though no official confirmation of such plans has been provided by executives or corporate communications [2].

The board of directors has described the capital increase as essential to support the company’s growth strategy, particularly in the Ethereum market, where it seeks to strengthen its position as a digital asset infrastructure provider [1]. However, the absence of explicit details on how the additional shares will be deployed—such as for fundraising, acquisitions, or share buybacks—has left shareholders and analysts speculating about the company’s priorities. While analyst forecasts suggest the funds could be used to expand ETH holdings, the company has not formally acknowledged these expectations [2].

The proxy statement filed with the U.S. Securities and Exchange Commission highlights the need for a larger share base to meet anticipated funding requirements, particularly in a market characterized by regulatory uncertainties and volatility [2]. If approved, the expanded capital structure would allow Bit Digital to issue additional shares for equity financing or compensation programs. However, the board acknowledged potential risks, including shareholder dilution, which could reduce earnings per share and voting power for existing shareholders [3].

Shareholder voting dynamics are critical to the proposal’s success. As of July 18, 2025, the company had 319.97 million ordinary shares and 1 million preferred shares outstanding. Insiders hold all 1 million preferred shares, each carrying 50 votes, granting them significant influence over the outcome. Chairman Zhaohui Deng and CFO Erke Huang control 70% and 30% of the preferred shares, respectively, aligning with the board’s recommendation to approve the proposal [3].

Voting procedures for the September 10 meeting include in-person attendance, virtual participation via live webcast, or proxy submissions. Shareholders must receive proxy materials by August 5, 2025, to cast their votes. The board has engaged Sodali & Co. for proxy solicitation, incurring a $13,000 fee plus disbursements [3]. A contingency plan allows the meeting to be adjourned if insufficient shareholder support is gathered, enabling further outreach efforts [3].

The proposed capital increase reflects Bit Digital’s proactive approach to capital management amid a challenging market environment for crypto-related companies. However, its success depends on securing shareholder confidence in the company’s governance and growth strategy. The lack of clarity on ETH investment plans and the absence of direct communication from executives underscore the need for transparency to address stakeholder concerns [2].

Source:

[1] [Bit Digital’s 28471% Share Increase to Expand Ethereum Holdings](https://www.ainvest.com/news/ethereum-news-today-bit-digital-28-471-share-increase-expand-ethereum-holdings-2507/)

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

[3] [Schedule 14A Proxy Statement](https://www.sec.gov/edgar)