Ethereum News Today: Bit Digital Seeks 285x Share Increase to Fund Ethereum Expansion as ETH Surges 106.98% in 90 Days

Bit Digital Inc. (BTBT) is advancing a strategic initiative to bolster its Ethereum (ETH) holdings through a proposed capital increase, as outlined in filings and statements released on July 26, 2025. The company plans to seek shareholder approval for a significant expansion of its authorized share capital, increasing from $3.5 million to $10.1 million, to fund its growing Ethereum acquisition strategy. This move reflects a deliberate pivot from earlier Bitcoin-focused operations toward Ethereum-centric treasury management and staking activities [1][2].

The capital raise, if approved, would enable Bit Digital to execute equity financing or direct ETH purchases, aligning with broader institutional trends favoring Ethereum’s proof-of-stake model. CEO Sam Tabar emphasized the importance of this strategy in enhancing the firm’s market position, stating it aligns with long-term growth objectives amid Ethereum’s recent 106.98% surge over 90 days and a current price of $3,742.10 [1]. The company’s existing Ethereum treasury holds approximately 120,000 ETH, and the expanded funding is expected to accelerate its accumulation efforts.

Bit Digital’s strategic shift follows its March 2025 decision to spin off its WhiteFiber subsidiary via an IPO, signaling a departure from Bitcoin-centric activities. The firm’s Ethereum staking operations have already seen a 32x increase in supply requirements since the Shanghai upgrade, reflecting heightened demand for staking services [3]. This aligns with industry reports indicating $2 billion in inflows into Ethereum treasury vehicles and ETFs over two weeks, underscoring strong institutional confidence in ETH’s utility and appreciation potential [5].

The proposed 1 billion-share authorization, a 285x increase from its current cap, mirrors strategies used by peers like Strategy Corp. to fund crypto acquisitions. However, Bit Digital’s exclusive focus on Ethereum distinguishes it, leveraging validator rewards and network participation for yield generation. Analysts note that such capital raises are becoming common as regulatory clarity and Ethereum’s technological advancements create favorable conditions for institutional investment [4].

Governance enhancements accompanying the capital increase aim to strengthen corporate oversight and align shareholder interests with Ethereum-focused goals. The firm’s treasury management approach, centered on ETH, contrasts with traditional crypto holding strategies and reflects a broader diversification of institutional portfolios. For instance, Fidelity reported a 50% growth in public companies holding at least 1,000 BTC in 2025, yet Ethereum’s staking and smart contract capabilities position it as a compelling alternative [6].

Shareholders will vote on the proposal at a September 10, 2025, meeting in New York. While supporters argue the move positions Bit Digital to capitalize on Ethereum’s evolving role in decentralized finance, critics may raise concerns about dilution risks from a 285x share increase. The outcome of the vote will serve as a critical indicator of market sentiment toward pure-play staking models in a rapidly changing crypto landscape [2][3].

Source:

[1] [Bit Digital Ethereum Strategy Shares] (https://cryptobriefing.com/bit-digital-ethereum-strategy-shares/)

[2] [Ethereum News Today: Bit Digital 28471% Share Increase] (https://www.ainvest.com/news/ethereum-news-today-bit-digital-28471-share-increase-fund-ethereum-expansion-2507/)

[3] [Bit Digital Expands Shares 285x to 1B to Fund Ethereum Staking] (https://www.ainvest.com/news/ethereum-news-today-bit-digital-expands-shares-285x-1b-fund-ethereum-staking-demand-surges-32x-supply-2507/)

[4] [Strategy Bumps STRC Share Price to $2B to Buy Bitcoin] (https://www.mitrade.com/insights/news/live-news/article-3-987791-20250725)

[5] [XT Community News] (https://www.xt.com/en/blog/community-news/2025-07-25T16:29:03.000Z)

[6] [Corporate Whales: Public Firms Holding at Least 1,000 BTC Grow 50% in 2025] (https://cryptoslate.com/corporate-whales-public-firms-holding-at-least-1000-btc-grow-50-in-2025-fidelity/)