Bit Digital Drops Bitcoin Mining to Focus on Ethereum Staking Strategy

TLDR

Table of Contents

Bit Digital will fully exit Bitcoin mining to focus solely on Ethereum staking.
The company plans to convert 417.6 BTC into over 18,000 ETH gradually.
Bit Digital’s stock dropped 3.69% on June 25, then another 3.83% after hours.
With 24,434 ETH, Bit Digital is now the third-largest public ETH holder globally.

Bit Digital Inc. has announced a major shift in its business model, transitioning from Bitcoin mining to Ethereum staking. The Nasdaq-listed company said it will sell or wind down its Bitcoin mining operations and gradually convert all Bitcoin (BTC) reserves into Ether (ETH). The company’s stock dropped nearly 4% following the announcement.

According to a press release dated June 25, Bit Digital will use the proceeds from the sale of mining assets and a new stock offering to increase its Ethereum holdings. The company said it aims to become a “pure-play Ethereum staking and treasury company.” It began accumulating Ethereum and building staking infrastructure in 2022.

Bit Digital Full Transition to Ethereum Staking

Bit Digital stated that it will exit Bitcoin mining entirely and focus on Ethereum staking for generating returns. The company held 417.6 BTC and 24,434.2 ETH as of March 31, 2025. Based on current prices at the time of reporting, these assets were valued at around $34.5 million and $44.6 million, respectively.

If the firm converts its Bitcoin holdings to Ether at current rates, its ETH reserves will increase by over 18,000 ETH. The company did not provide a fixed timeline for the conversion but emphasized that the process would be gradual. “We plan to wind down or divest all Bitcoin mining operations,” the company said in its statement. “Proceeds will support our ETH staking strategy and increase our crypto treasury.”

The move comes as Ethereum has gained popularity among firms for its staking model. After Ethereum’s switch to proof-of-stake in 2022, companies have been able to earn yields between 4% and 6.5% annually by staking ETH. This model has become an alternative for firms that seek returns without the operational costs of mining.

Stock Offering to Fund Ethereum Purchases

Along with the operational change, Bit Digital launched an underwritten public offering of its ordinary shares. All shares in the offering will be sold by the company, and proceeds will be used to buy more Ether. The terms, size, and pricing of the offering were not disclosed at the time of publication.

The company’s stock (NASDAQ: BTBT) declined 3.69% during the June 25 trading session to $2.35. It dropped another 3.83% after market close, ending at $2.26, according to Google Finance. Bit Digital shares are down approximately 25% year-to-date and have fallen 39% from the peak of $3.88 on January 6.

Bit Digital’s net revenue dropped 18% year-on-year in the March quarter, and its profit margin declined by 240%. The company reported these results before its recent Ethereum-focused announcement.

Market Trends and Company Expansion Plans

More firms have recently increased their exposure to Ethereum. SharpLink Gaming purchased over $463 million in Ether in June, followed by an additional $30 million investment. According to data from Strategic ETH Reserve, Bit Digital is currently the third-largest publicly traded ETH-holding company. SharpLink ranks first, followed by Coinbase.

Bit Digital has also been expanding into new areas. In April 2025, the company acquired an industrial facility in Madison, North Carolina, for $53 million. The site will support its artificial intelligence and high-performance computing unit, WhiteFiber Inc. This subsidiary has confidentially filed a draft registration with the U.S. Securities and Exchange Commission for a possible IPO. Details regarding the offering, including the number of shares and pricing, have not been shared.

The company confirmed that its full transition to Ethereum is aimed at optimizing its long-term treasury strategy. No further comments were available from Bit Digital as of the latest update.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: