Ethereum News Today: Bit Digital Sells Bitcoin Reserves to Buy 19,683 ETH as Institutional Demand for Ethereum Surges

Bit Digital Inc. (NASDAQ: BTBT) has announced a significant capital increase to accelerate its Ethereum (ETH) acquisition strategy, having recently purchased 19,683 ETH tokens for $67.3 million, bringing its total holdings to 120,306 ETH [1]. This move reflects growing institutional demand for Ethereum, with firms increasingly prioritizing the second-largest cryptocurrency over Bitcoin. Bit Digital’s strategy aligns with broader sector trends, as companies like SharpLink and BitMine leverage equity financing to fund large-scale ETH purchases. SharpLink raised $425 million via a private investment in public equity (PIPE) to acquire nearly 75,000 ETH [2], while BitMine aims to secure 5% of the global Ethereum supply through a $850 million convertible bond offering [3].

Ethereum’s institutional appeal is evident in recent market activity. Ethereum spot trading volume surpassed Bitcoin for the first time in over a year, reaching $25.7 billion compared to Bitcoin’s $24.4 billion [4]. Bit Digital’s decision to sell Bitcoin reserves to fund ETH acquisitions highlights a reallocation of institutional crypto portfolios [5]. Additionally, Ethereum ETFs recorded $332 million in net inflows on July 23, marking 14 consecutive days of positive flows [6], underscoring the asset’s growing adoption.

The capital-raising strategies employed by crypto firms are reshaping the industry. Equity financing, such as SharpLink’s PIPE and BitMine’s convertible bonds, is becoming a standard method for funding large-scale crypto acquisitions. These efforts are driven by Ethereum’s ongoing network upgrades, including Ethereum Improvement Proposals (EIPs) and upcoming consensus layer enhancements, which aim to improve scalability and reduce transaction costs. Bit Digital’s expanded ETH holdings position it to benefit from potential price appreciation, particularly as Ethereum’s supply dynamics tighten post-merge.

Analysts attribute Ethereum’s momentum to on-chain activity and structural shifts. Whale and institutional buying has accelerated, with two entities accumulating 43,591 ETH ($145 million) within hours [7]. Ethereum’s role as a settlement asset in decentralized finance (DeFi) further strengthens its long-term value proposition. However, macroeconomic factors such as U.S. interest rate policies and regulatory developments remain critical risks for the sector.

Bit Digital’s strategy aligns with the broader institutionalization of crypto markets. As firms like CoinShares secure EU MiCA licenses and Goldman Sachs partners with BNY Mellon to launch tokenized money market funds [8], the infrastructure supporting crypto investments continues to mature. Bit Digital’s focus on Ethereum complements these trends, positioning it to benefit from increased liquidity and adoption. The firm’s actions signal confidence in Ethereum’s ability to outperform Bitcoin in the current cycle, though views like BitMEX co-founder Arthur Hayes’ assertion that NFTs such as Cryptopunks could surpass ETH in status-driven demand remain speculative [9].

By prioritizing Ethereum through capital raises and strategic asset allocation, Bit Digital reflects a sector-wide shift toward the platform’s technological evolution and market potential. As institutional capital flows into crypto assets, firms adopting similar strategies may emerge as key players in the next phase of digital asset growth.

Sources:

[1] [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] [In a First for the Industry, SharpLink Buys Almost 75000 Ethereum](https://www.nasdaq.com/articles/first-industry-sharplink-buys-almost-75000-ethereum-heres-why-investors-should-take-note)

[3] [BitMine Launches BMNR Options Trading on NYSE, Plans to Acquire 5% of Ethereum Supply](https://www.theblockcrypto.com/analysis/882942-bitmine-plans-to-acquire-5-of-ethereum-supply)

[4] [Ethereum Demand Surges 32x Beyond Supply: Bitwise](https://www.mitrade.com/au/insights/news/live-news/article-3-982942-20250724)

[5] [Bit Digital Sold Bitcoin Reserves to Acquire 100,000 ETH](https://www.mitrade.com/au/insights/news/live-news/article-3-982942-20250724)

[6] [$332 Million To Minus $85 Million: Why Are Ethereum ETFs...](https://www.aol.com/332-million-minus-85-million-152154442.html)

[7] [Two Whales/Institutions Increased ETH Holdings by 43,591](https://www.panewslab.com/en/articles/efvvv9r2)

[8] [Goldman Sachs and New York Mellon to Launch Tokenized Money Market Fund](https://www.cnbc.com/2025/07/24/goldman-sachs-bny-mellon-launch-tokenized-money-market-fund/)

[9] [Arthur Hayes: Cryptopunks Will Outperform Ethereum This Round](https://www.panewslab.com/en/articles/efvvv9r2)