Nasdaq Firm Bit Digital Dumps Bitcoin, Buys 100K Ethereum
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While many firms are stacking Bitcoin, this Nasdaq-listed company is doing the opposite, dumping Bitcoin for Ethereum.
Bit Digital has made a bold move, shifting its focus to Ethereum. After raising $172 million from investors, the company aims to become the world’s largest corporate holder of ETH. With over 100,000 ETH already in its treasury, Bit Digital is aggressively expanding its Ethereum holdings.
From Bitcoin to Ethereum TreasuryBit Digital recently announced that it had sold off all 280 BTC from its balance sheet, using the funds to buy Ethereum. But that was just the beginning. The company also raised $172 million through a public offering, and every penny of that is being used to buy more ETH.
Before this major shift, Bit Digital had about 24,000 ETH. Now, it owns over 100,603 ETH, making it one of the biggest corporate holders.
Ethereum can rewrite the entire financial system.
We are aligning ourselves with Ethereum’s long-term potential. Bit Digital accumulated 100,603 ETH — and we intend to aggressively add more to become the preeminent ETH holding company in the world.
We have converted BTC… pic.twitter.com/o8la1Jur0w
Leading this ambitious pivot is CEO Sam Tabar says this is not just for quick profit. He believes Ethereum’s smart contracts, growing use, and staking rewards make it a better bet for the future than Bitcoin.
Following this announcement, Bit Digital’s stock jumped nearly 18%, trading at $3.48 and gaining more than 73% in just one week.
[post_titles_links postid=”479809″] Others Are Joining the Ethereum Treasury ClubMeanwhile, Bit Digital isn’t alone in this shift. BitMine Immersion Technologies recently raised $250 million privately to build its own Ethereum treasury, stepping away from its previous Bitcoin-first plan.
Meanwhile, SharpLink Gaming made an even bigger splash by buying over 176,000 ETH for $463 million, becoming the biggest public company holder of Ether so far.
Where’s ETH Price Heading?While Bit Digital doubles down on its Ethereum vision, the ETH price has been moving higher too. Meanwhile, recently it climbed above $2,550 and may aim for $2,650 or even $2,800 if momentum holds.
However, if it struggles to clear $2,580 cleanly, a pullback could follow.
[article_inside_subscriber_shortcode title=”Never Miss a Beat in the Crypto World!” description=”Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.” category_name=”News” category_id=”6″] FAQs Could Bit Digital’s move influence other companies to diversify into Ethereum?Yes, Bit Digital’s bold pivot could influence other public companies to diversify into Ethereum. Its move, along with SharpLink Gaming and BitMine Immersion Technologies also building ETH treasuries, signals a growing institutional interest in Ethereum’s ecosystem, particularly for its staking yields, programmable nature, and role in tokenized assets.
What happens if Ethereum’s price drops significantly after Bit Digital’s investment?If Ethereum’s price drops significantly after Bit Digital’s large investment, it would negatively impact the company’s treasury value and potentially its stock price. While Bit Digital is bullish on ETH’s long-term potential, crypto markets are volatile, and a substantial downturn would reduce the value of their holdings and staking returns.
Could Bit Digital’s focus on Ethereum staking impact the ETH network’s security or decentralization?Bit Digital’s focus on Ethereum staking, by adding over 100,000 ETH to its staked holdings, generally strengthens the ETH network’s security as more ETH is locked up to validate transactions. However, if a few large entities like Bit Digital accumulate a disproportionately large amount of staked ETH, it could raise concerns about decentralization, as control over block validation might become concentrated.