Bit Digital Doubles Down on Ethereum: Dumps Bitcoin for ETH Bet
Mining firm pivots hard—liquidates BTC treasury to chase Ethereum's yield potential.
The big flip: Bit Digital's board clearly thinks ETH's staking rewards and DeFi integrations outshine Bitcoin's 'digital gold' narrative. Or maybe they just enjoy paying gas fees.
Timing the market? The move comes as Ethereum's ecosystem absorbs institutional inflows like a sponge—while Bitcoin maximalists clutch their cold wallets and mutter about 'laser eyes.'
Wall Street déjà vu: Nothing screams 'conviction trade' like selling low (BTC's 2024-2025 consolidation) to buy high (ETH near ATH). Somewhere, a hedge fund manager nods approvingly.
$2,551. The company now holds 100,603 ethereum in its treasury. Sam Tabar, Chairman of the Board, asserts that the smart contract ecosystem and staking returns of Ethereum present more advantageous prospects compared to Bitcoin
$108,298 over the long term.
ContentsBit Digital’s Altcoin StrategyCorporate Contest in Ethereum Treasury
Bit Digital’s Altcoin Strategy
Bit Digital recently revealed its decision to utilize the entire $172 million from its latest funding round for purchasing Ethereum. Previously holding around 24,000 ETH, the company has significantly increased its holdings more than fourfold to 100,603 ETH by using the proceeds from Bitcoin sales. Tabar emphasizes that Ethereum’s versatile network usage and consistent staking rewards offer an appealing and sustainable return model for corporate balance sheets.
Following the conversion announcement, Bit Digital’s shares (BTBT) soared by 73% last week, reaching $3.48. The company reiterates its ambition to be “the world’s largest corporate Ethereum treasury,” arguing that not being reliant on a single cryptocurrency like Bitcoin helps balance risks. Market participants note that this decision underscores the increasing importance of diversification in financial management for mining-focused firms.
Corporate Contest in Ethereum Treasury
Bit Digital’s realignment has spurred a new competitive arena with similar moves by other companies. Mining company BitMine Immersion Technologies abandoned its Bitcoin-first strategy, raising $250 million to devote to accumulating Ethereum. Meanwhile, gambling technology company SharpLink Gaming spent $463 million to purchase 176,000 ETH, becoming the publicly traded company with the most Ethereum.
In addition to these developments, the increased market demand is also driving up the price of ETH. The latest surge saw ETH breaking the $2,550 barrier. Technical analysts forecast that the $2,650 – $2,800 range might come into play. However, they caution that a failure to consistently breach the $2,580 level could pose a short-term pullback risk.
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