Bit Digital Shifts Gears: Dumps Bitcoin Mining for ETH Staking—Stock Tanks 8%

Bit Digital just pulled a 180—ditching its Bitcoin mining rigs to go all-in on Ethereum staking. The market responded with an 8% haircut.

Here's why the pivot stings.

The crypto miner's strategic U-turn comes as Ethereum's proof-of-stake model continues eating Bitcoin's proof-of-work lunch. But Wall Street isn't buying the vision—yet.

One analyst's take: 'Another day, another crypto firm chasing greener pastures. At least they didn't announce a metaverse pivot.'

Can staking save Bit Digital's bottom line? The blockchain doesn't lie—we'll find out next earnings call.

Bit Digital Ether Position, ETH Staking Infrastructure

The Nasdaq-listed Bit Digital began accumulating ETH and operating staking infrastructure in 2022. The company has steadily increased its holdings since then.

Per the official announcement, the company held 24,434.2 ETH and 417.6 BTC as of March 2025. “Bit Digital intends to convert its BTC holdings into ETH over time,” it said.

The strategic pivot comes at a time when Ethereum, after it transitioned to a proof-of-stake consensus mechanism, has gained traction in the crypto ecosystem.

The world’s second-largest crypto started a fresh upward MOVE above the $2,320 level on Thursday, per CoinMarketCap data. ETH is now showing bullish signs and might aim for a move above the $2,550 zone.

In a separate announcement, Bit Digital noted that it will be selling shares to use the net proceeds for Ethereum purchase. It announced an underwritten public offering of its ordinary shares with B. Riley Securities acting as the book-running manager.

Stocks Experience 8% Plunge

The company’s stock initially fell 3.7% at close on Wednesday, and was further down another 4.3% in after-hours trading, per Yahoo Finance data.

The pivot to ETH staking news stirred investor concerns, suggesting uncertainty despite strategic developments in its ETH operations. The New York-based firm’s stock has a $488 million market cap.