Ethereum News Today: Institutions Shift to Ethereum Staking as Yields Outpace Bitcoin's Passive Model

Bit Digital, Inc. (NASDAQ: BTBT) has intensified its focus on Ethereum (ETH) as a core treasury and staking asset, signaling a strategic shift away from Bitcoin mining. In September 2025, the company completed a $150 million convertible notes offering, with net proceeds allocated to Ethereum purchases. As of September 30, 2025, Bit Digital held approximately 122,187 ETH, valued at $506.6 million at a price of $4,145.99 per ETH. The firm reported acquiring 653 ETH during the month, with an average acquisition price of $2,643.27. Approximately 81.8% of its holdings (~99,936 ETH) were staked, generating 291 ETH in rewards, equivalent to an annualized yield of 3.37%. The company's shares outstanding totaled 321.4 million, and it maintained a 71.5% stake in WhiteFiber (WYFI) through 27 million sharesBit Digital, Inc. Reports Monthly Ethereum Treasury and Staking Metrics for September 2025^[1].

Corporate adoption of Ethereum as a treasury asset is accelerating, with companies leveraging staking and decentralized finance (DeFi) strategies to generate yields. Bit Digital's pivot mirrors broader industry trends, as firms like SharpLink Gaming and BitMine Immersion Technologies also prioritize Ethereum. SharpLink staked nearly 100% of its 728,000 ETH, while BitMine aims to acquire 5% of the total ETH supply. These strategies highlight Ethereum's role as a programmable blockchain, enabling yield generation through staking and lending protocolsETH Staking Powers Corporate Treasury DeFi Movement^[2]. Institutional Ethereum holdings now exceed 4 million ETH ($17.6 billion), with spot ETFs contributing to over 5% of the total supply controlled by institutionsWhy Ethereum Treasuries Could Be The Next Big Business Strategy^[3].

Ethereum's yield-generating capabilities contrast sharply with Bitcoin's passive store-of-value model. Staking rewards, ranging between 3-5% annually, offer institutional treasuries a competitive alternative to traditional fixed-income assets. Liquid staking derivatives, such as stETH and rETH, further enhance flexibility by allowing staked ETH to be used as collateral or traded while retaining yield. Platforms like Lido and Rocket Pool have facilitated institutional adoption, with Lido managing $31 billion in total value locked. Regulatory clarity, including frameworks like the EU's MiCA, has bolstered confidence in Ethereum's compliance-aligned infrastructureEthereum Treasuries: How Corporations Are Redefining Treasury Strategies^[4].

Bit Digital's transition from Bitcoin mining underscores the economic challenges facing firms with limited physical infrastructure. The company previously relied on third-party hosting partners but now plans to divest its Bitcoin mining operations entirely. By March 2025, Bit Digital held 24,434 ETH and 418 BTC, with a strategy to convert Bitcoin holdings to Ethereum over time. This shift aligns with Ethereum's dominance in staking infrastructure, where Bit Digital operates one of the largest institutional validator networksBit Digital Raises $150M to Buy ETH, Quits Bitcoin Mining^[5].

Despite the potential for yield generation, risks remain. Ethereum's price volatility, operational complexities in smart contracts, and regulatory uncertainties pose challenges. However, the market's rapid adoption-evidenced by a 75% increase in institutional DeFi engagement over two years-suggests growing acceptance of Ethereum-based strategies. Analysts note that Ethereum's role as a "financial operating system" is expanding, with platforms like Morpho and SparkLend enabling sophisticated treasury managementETH Staking Powers Corporate Treasury DeFi Movement^[6].

The institutional Ethereum ecosystem is reshaping corporate finance, with treasuries treating ETH as a hybrid asset combining growth potential and regular income. As companies scale staking operations and integrate DeFi tools, Ethereum's influence in institutional portfolios is expected to grow. Bit Digital's aggressive capital allocation and strategic partnerships exemplify this trend, positioning the firm as a key player in the evolving digital asset landscapeBit Digital Raises $150M to Shift from Bitcoin Mining^[7].