- Bit Digital shifts to Ethereum staking, plans full BTC exit, and reinvests proceeds into ETH amid strategic realignment.
- Despite stock falling 25% YTD, Bit Digital deepens ETH focus with $53M AI facility and aims to boost staking income.
- Bit Digital becomes third-largest public ETH holder as institutional interest in Ethereum staking surges post-Merge.
Bit Digital has officially declared its strategic transition into a pure-play Ethereum staking and treasury company. The firm will gradually exit Bitcoin mining, a move that has impacted its stock performance. As of March 31, 2025, Bit Digital held 24,434 ETH and 417 BTC, valued at $44.6 million and $34.5 million respectively. The firm plans to convert all Bitcoin into Ethereum over time, reinforcing its commitment to staking and ETH-based treasury growth.
This pivot comes as part of Bit Digital’s strategy to prioritize passive income streams over energy-intensive mining. The company began accumulating Ethereum in 2022 and has steadily increased its holdings since then. Besides staking, the company is also exploring high-performance computing, marking a shift from its original focus.
Mining Wind-Down and Strategic Alternatives
The company expects to either sell off or wind down these assets. Any proceeds from this transition will be reinvested into Ethereum. Hence, this move aligns with the company’s vision to become fully ETH-centric.
However, investors did not respond positively to the announcement. Bit Digital’s stock (BTBT) dropped 3.69% to $2.35 during Wednesday’s session. Moreover, the decline extended after hours, falling another 3.83% to close at $2.26. The stock is now down nearly 25% year-to-date and 39% from its January peak.
For the March quarter, Bit Digital reported an 18% year-over-year decline in net revenue. Additionally, its net profit margin dropped sharply by 240%. Despite the financial pressure, the company acquired a $53 million facility in North Carolina to support its AI and HPC ambitions.
Institutional ETH Adoption on the Rise
Bit Digital is now the third-largest public holder of Ethereum, following Coinbase and SharpLink Gaming. Additionally, SharpLink has made headlines for acquiring $493 million worth of ETH in June 2025. Consequently, it now holds 188,478 ETH, becoming the largest public ETH holder globally.
Ethereum’s shift to proof-of-stake through the Merge has made staking an attractive option. Companies can now earn 4–6.5% annually through staking rewards. Moreover, the ability to secure the network while generating passive income is drawing more institutional interest toward Ethereum’s ecosystem.
