- Bit Digital exits Bitcoin and builds a $254.8M Ethereum treasury, signaling a deep strategic shift toward yield and smart contracts.
- Bit Digital’s ETH pivot follows a $172M raise, 280 BTC sale, and reflects rising institutional trust in Ethereum’s programmability.
- Ethereum’s growing appeal as a yield-bearing asset drives firms like Bit Digital and Sharplink to reallocate treasuries from Bitcoin.
Bit Digital has sold all its Bitcoin and bought over $192 million worth of Ethereum. The move follows a public equity raise of $172 million and a full liquidation of its BTC holdings—roughly 280 Bitcoin worth $28 million. Consequently, the firm now owns 100,603 ETH, with total Ethereum holdings valued at $254.8 million.
The company’s shares (Nasdaq: BTBT) surged 18.4% on the news, outperforming most crypto mining peers. Meanwhile, top players like Marathon and Core Scientific suffered steep losses, dropping up to 17%.
Strategy Shift Reflects Rising Ethereum Confidence
Bit Digital is fully pivoting away from Bitcoin mining. CEO Sam Tabar said Ethereum’s programmability, staking yield, and growing adoption drove the decision. He emphasized that this is just the beginning, as Bit Digital plans to add even more ETH to become the “preeminent Ethereum holding company.”
Back in Q1 2025, Bit Digital held just 24,434 ETH. From that stash, it generated over $560,000 in staking revenue. Hence, the current aggressive accumulation aligns with a strategy focused on yield and smart contract infrastructure.
Moreover, the firm initially tested this shift in June 2024 by trading BTC for ETH at 0.048 BTC per ETH. However, the exchange rate has since halved to 0.023. Despite that, Bit Digital doubled down, signaling strong conviction in Ethereum’s future.
Ethereum’s Institutional Appeal Keeps Growing
Bit Digital isn’t alone. Last month, Sharplink Gaming adopted an Ethereum treasury model with help from Consensys. It now holds 188,478 ETH worth $457 million—making it the world’s largest public ETH holder.
Additionally, Ethereum ETFs are seeing strong inflows. BlackRock’s iShares Ethereum Trust logged 23 straight days of gains. Fidelity and others added over $21 million into ETH funds.
Besides, over 35 million ETH are now staked, locking up 28% of supply. Ethereum’s smart contracts and staking returns offer a better value proposition than Bitcoin’s static design.
