Ethereum News Today: Bit Digital Unveils $1 Billion Ethereum Acquisition Plan to Shift to ETH as Primary Treasury Asset

Nasdaq-listed Bit Digital Inc. has unveiled a $1 billion Ethereum (ETH) acquisition plan, signaling a strategic shift toward Ethereum as its primary corporate treasury asset. The move, led by CEO Sam Tabar, involves expanding the company’s authorized share capital from 340 million to 1 billion shares to fund the purchase. Shareholder approval is required, with a vote scheduled for an extraordinary general meeting in September 2025. This initiative follows Bit Digital’s recent acquisition of 19,683 ETH tokens for $67.3 million, increasing its total holdings to 120,306 tokens valued at $444.54 million [2].

Bit Digital’s strategy diverges from Bitcoin-centric treasury approaches adopted by firms like MicroStrategy, reflecting growing institutional confidence in Ethereum’s utility as a reserve asset. The company has redirected Bitcoin liquidity into Ethereum, a trend echoed by competitors such as BitMine and SharpLink, the latter of which has staked $1.33 billion in ETH [4]. Bit Digital’s aggressive ETH accumulation is supported by a $67 million follow-on equity offering in July 2025 and an earlier $150 million fundraising round [3].

The plan’s execution hinges on two critical factors: shareholder approval and Ethereum’s price stability. While the company’s stock surged 6.5% in late July 2025 amid a broader market rally, critics highlight crypto’s inherent volatility. Proponents argue Ethereum’s programmable nature and staking yields position it as a superior long-term treasury asset compared to Bitcoin. Bit Digital aims to leverage regulatory clarity, including new U.S. accounting standards permitting crypto holdings to be reported at fair market value, to justify its strategy [6].

Market dynamics underscore Ethereum’s rising prominence. Its spot trading volume recently exceeded Bitcoin’s for the first time in over a year, driven by institutional and retail interest [8]. On-chain data reveals significant ETH accumulation, with one entity purchasing 43,591 tokens in a single week. Bit Digital’s $1 billion share increase provides flexibility to capitalize on market dips, securing ETH at lower costs. However, regulatory scrutiny looms as the company scales its holdings, despite SEC-compliant filings [1].

The initiative aligns with broader corporate adoption trends. Tesla’s inclusion of Bitcoin on its balance sheet under recent accounting rules has set a precedent, a trend Bit Digital seeks to amplify through Ethereum. The company’s success could influence how firms allocate capital, particularly as Ethereum’s market cap approaches $200 billion and its role in decentralized finance (DeFi) expands. Upcoming Ethereum upgrades and macroeconomic factors like U.S. monetary policy will further shape the strategy’s execution [9].

Bit Digital’s plan underscores a strategic pivot in corporate crypto investment. By positioning itself as an “ETH treasury platform,” the company aims to redefine institutional engagement with digital assets. Its ability to secure shareholder approval and navigate regulatory and market risks will determine whether it becomes the “preeminent ETH holding company in the world,” as envisioned by Tabar [1].

Sources:

[1] [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

[2] Should you buy ETH and this cheap altcoin as Bit Digital ...

https://www.msn.com/en-us/money/news/should-you-buy-eth-and-this-cheap-altcoin-as-bit-digital-acquires-19683-eth/ar-AA1J0OIz

[3] Bit Digital (BTBT) Raises US$67 Million in Follow-On ...

https://simplywall.st/stocks/us/software/nasdaq-btbt/bit-digital/news/bit-digital-btbt-raises-us67-million-in-follow-on-equity-off

[4] In a First for the Industry, SharpLink Buys Almost ...

https://www.mitrade.com/au/insights/news/live-news/article-8-983589-20250724

[5] Crypto stocks jump as ether scales six-month high

https://www.aol.com/news/ether-linked-stocks-jump-crypto-103945635.html

[6] Tesla's Q2 financial report shows that its Bitcoin holdings have risen to $1.2 billion

https://www.panewslab.com/en/articles/efvvv9r2

[8] SharpLink Gaming Stakes $1.33B in Ethereum

https://cryptonews.com/news/sharplink-gaming-1-33b-ethereum-stake/

[9] BIT Mining announced plans to raise $200-300 million to build a Solana treasury

https://cryptorank.io/news/feed/3c72c-biotech-firm-windtree-gets-520m-funding-to-build-massive-bnb-treasury