- Bit Digital sold all its Bitcoin and raised $172 million to quadruple its Ethereum holdings within just three months.
- The firm plans to stake most of its 100K ETH, creating steady on-chain cash flow to support operations and grow its ETH treasury.
- Ethereum’s appeal grows among public firms as staking yields and programmability replace Bitcoin’s passive store-of-value approach.
Ethereum is experiencing growing adoption among public companies, with Bit Digital (NASDAQ: BTBT) making the most recent commitment to transition its treasury into ETH completely. Bit Digital has approximately 100,603 ETH in its treasury, and is now one of the larger corporate holders of ETH.
Bit Digital Sells BTC and Buys Over 100K ETH
On July 8, Ethereum advocate Eric Conner (@econoar) shared that Bit Digital sold its entire Bitcoin holdings and raised $172 million to increase its Ethereum treasury. As of March 31, the company held 24,434 ETH. Within three months, it quadrupled its ETH position through a combination of equity issuance and a BTC liquidation of around 280 BTC.
This swift pivot positioned Bit Digital as a top-tier holder of ETH among public companies. The company’s CEO, Sam Tabar, stated that Ethereum’s programmable nature, expanding adoption, and staking capabilities present a more functional alternative to Bitcoin’s “idle digital gold” narrative.
Ethereum’s Yield Potential Drives Treasury Strategy
Bit Digital’s ETH-focused strategy is centered on staking. The company intends to stake nearly all of its ETH holdings and turn its treasury into a revenue-generating enterprise. This method will permit Bit Digital to establish on-chain cash flows from which it can use for operational expenses and to then procure further ETH over time.
This ETH-forward strategy follows a growing trend. Tom Lee’s fund holds roughly 5% of its $5 billion in Ethereum, amounting to around $250 million. Ethereum co-founder Joseph Lubin also previously championed this approach. Bit Digital’s current ETH stack, valued at around $261 million at $2,600 per coin, puts it in line with other major Ethereum-focused institutional holders.
Corporate ETH Holdings Outpace New Issuance
According to Conner’s analysis, the demand from public companies for ETH is outpacing the network’s monthly issuance of 112,000 ETH. Bit Digital’s accumulation of over 100,000 ETH in a single quarter demonstrates how fast public firms can absorb available supply.
MicroStrategy, often cited for its aggressive Bitcoin holdings, still has no ETH exposure. In contrast, Bit Digital’s strategy illustrates a new direction for companies once aligned with Bitcoin mining. Transitioning from Proof-of-Work to Proof-of-Stake infrastructure allows these firms to tap into Ethereum’s staking rewards and reduce operational overhead.
ETH on Balance Sheets Emerges as a Key Metric
The Ethereum-focused shift by Bit Digital reflects a broader movement that may reshape corporate treasury strategies. As Conner noted, the next round of 10-Q filings could show increased ETH accumulation by other companies. Ethereum’s transition to Proof-of-Stake and staking yield potential makes it more attractive to institutions looking for blockchain-native income streams.
Tom Lee helped introduce the concept, Lubin expanded it with strategic clarity, and Bit Digital has now demonstrated it at scale. As more companies evaluate their digital asset strategies, Ethereum may see continued inflows driven by both financial and operational advantages.
The ETH supply landscape could tighten further if other public companies follow suit. Corporate adoption of Ethereum for treasury purposes may become a defining factor in the next phase of institutional crypto participation.
