Bit Digital, a company listed on the Nasdaq, has successfully completed a significant equity raise amounting to $163 million, earmarked for the purchase of Ethereum. This strategic pivot signifies a major shift for the firm as it transitions from Bitcoin mining operations to accumulating Ethereum, aiming to evolve into a dedicated staking enterprise.
B. Riley Securities spearheaded the underwritten public offering, which was formally closed on July 1. The underwriters opted to exercise their full option to acquire additional shares, culminating in total proceeds of approximately $162.9 million after deducting fees.
Recent financial data shows that Bit Digital’s revenue from Bitcoin mining has plummeted by 64% in the first quarter of 2025, with the company generating merely 83.3 Bitcoin, a stark 80% decrease compared to the same period last year. Bitcoin mining presently constitutes only 31% of the firm’s overall revenue, down from 72% in Q1 of 2024, as illustrated in the latest financial statements.
Strategic Shift from Mining to Staking Infrastructure
Since 2022, Bit Digital has been accumulating Ethereum and building its staking infrastructure, anticipating a wider institutional trend favoring Ethereum treasury approaches. As of March 2025, the company reported holdings of 24,434.2 ETH worth about $44.6 million, alongside 417.6 BTC valued at $34.5 million, expressing intentions to convert its Bitcoin assets into Ethereum progressively.
On June 25, 2025, Bit Digital disclosed plans for its subsidiary WhiteFiber, Inc. to pursue an initial public offering while focusing exclusively on Ethereum staking, reaffirming its commitment to hold its considerable ETH reserves.
The New York-based firm indicated that the Bitcoin halving event in April 2024, coupled with rising network difficulty, has contributed to an environment where mining operations are increasingly unprofitable.
Bit Digital now manages about 21,568 ETH through native staking protocols, and it reported staking rewards of 211 ETH for Q1 2025 alone, marking a 72% rise compared to the previous year. Additionally, the company’s cloud services revenue surged 84% year-over-year, amounting to $14.8 million, reflecting successful diversification beyond its traditional crypto mining model.
Company leadership has initiated a process to evaluate strategic alternatives for its Bitcoin mining assets, with all proceeds from any asset sales designated for further Ethereum acquisitions.
Growing Institutional Momentum Behind Ethereum Treasury Strategies
This move by Bit Digital aligns with a broader trend of escalating institutional adoption of Ethereum as a corporate treasury asset, mirroring similar strategies adopted by other public entities throughout 2025. For instance, SharpLink Gaming emerged as the largest publicly traded Ethereum holder in June after acquiring 188,478 ETH valued at approximately $457 million through aggressive purchasing tactics.
BitMine Immersion Technologies also raised $250 million in a private placement aimed solely at Ethereum purchases, resulting in a dramatic 511% increase in its stock price during a single trading session. Moreover, BioNexus Gene Lab has integrated Ethereum as its primary treasury asset, positioning itself as the first Nasdaq-listed healthcare firm to embrace this strategy.
Institutional investors are increasingly drawn to Ethereum’s staking capabilities, which offer attractive yields for treasury holdings. Notably, Thomas Lee of Fundstrat Global Advisors, who recently joined BitMine’s board, referred to Ethereum as a “higher beta” asset compared to Bitcoin, highlighting its crucial role in stablecoin transactions and decentralized finance applications.
Given the projected expansion of stablecoin transaction volume, particularly on Ethereum’s network, demand for ETH could increase as the market evolves from its current worth of $250 billion to an anticipated $2 trillion by 2028, according to U.S. Treasury forecasts.
Bit Digital’s $163 million investment strategy comes as Ethereum stabilizes between $2,400 and $2,800, following an 80% increase since April, which has attracted substantial institutional interest and validated the corporate treasury approach focusing on the second-largest cryptocurrency.
