Bit Digital (BTBT) Surges 5% as $162.9M War Chest Fuels Aggressive Ethereum Staking Play

Bit Digital's stock just got a crypto-powered adrenaline shot—up 5% after announcing a $162.9M capital raise to double down on Ethereum staking. Wall Street's reaction? A mix of 'bullish' and 'here we go again.'

The Staking Endgame

The Nasdaq-listed miner is pivoting hard from Bitcoin rigs to ETH validators, betting that staking yields will outperform proof-of-work margins. That $162.9M war chest? Mostly earmarked for racking up more of those sweet 4-6% APY payouts.

Institutional FOMO or Desperation?

With post-merge Ethereum now yielding more than Treasury bonds, Bit Digital's move smells like a hedge against declining mining revenues. Either that, or they've been mainlining too much 'ultrasound money' Kool-Aid.

One thing's certain—when a public company starts playing the staking game, it's either a masterstroke... or a Hail Mary before the next crypto winter. Place your bets.

TLDR

• Bit Digital raises $162.9M through public offering to boost its Ethereum strategy

• BTBT stock climbs over 5 percent as market supports Ethereum-focused expansion

• Proceeds will fund Ethereum staking infrastructure and validator operations

• Company shifts focus from Bitcoin mining to sustainable Ethereum-based income

• Analysts see strong institutional backing as a sign of long-term confidence

Bit Digital Inc. shares closed at $2.31 on July 1 after rising 5.48% amid Ethereum-focused expansion plans. Pre-market trading on July 2 extended momentum as shares added 2.16%, reflecting market confidence. The company confirmed it raised $162.9 million through an underwritten public offering to advance its ethereum strategy.

Bit Digital Inc. (BTBT)

Public Offering Closes with $162.9M in Proceeds

Bit Digital announced the full exercise of underwriters’ option to purchase 11,250,000 additional shares, increasing offering size. This brings the total shares issued to 86,250,000, boosting net proceeds to approximately $162.9 million. The proceeds will support Bit Digital’s ongoing Ethereum staking and infrastructure efforts.

The stock gained over 5% as the capital raise demonstrated the company’s capacity to attract institutional backing. The transaction closed on July 1, reflecting investor confidence in Bit Digital’s Ethereum-centric treasury model. Analysts noted that raising funds without major dilution concerns signals a strong position.

The offering was conducted under a shelf registration filed with the SEC, effective since June 20, 2025. B. Riley Securities acted as the sole bookrunner, while three other firms served as co-managers. Bit Digital emphasized that the raised capital will be directed toward Ethereum acquisitions and validator operations.

Ethereum Strategy Takes Center Stage

Bit Digital intends to expand its Ethereum staking strategy using the fresh capital from the offering. The company began accumulating Ethereum in 2022 and has since built a large-scale staking infrastructure. With this strategy, Bit Digital aims to optimize onchain yield while managing validator security.

The firm’s Ethereum operations feature advanced validator deployment, active protocol governance, and yield optimization techniques. Bit Digital integrates with key Ethereum protocols to generate compliant and scalable staking returns. Through these methods, it supports broader Ethereum network security and decentralization.

Management believes its Ethereum-native treasury model positions the firm as a long-term digital asset player. By committing substantial funds to Ethereum, the company signals long-term conviction in the asset’s yield potential. Ethereum continues to be central to Bit Digital’s operational framework and growth path.

Market Reaction and Broader Context

Bit Digital’s stock movement aligned with the announcement of new Ethereum-focused capital deployment. The share price action suggests strong support for its digital asset positioning and staking goals. The $162.9 million offering marks a milestone in the company’s Ethereum roadmap.

The company’s pivot from Bitcoin mining to Ethereum staking reflects changing dynamics in crypto infrastructure. Bit Digital now targets sustainable income via protocol-level engagement rather than energy-intensive proof-of-work systems. Its Ethereum efforts include institutional custody, validator operations, and performance monitoring.

Bit Digital operates globally, but it is listed on Nasdaq under the ticker BTBT. The company’s growth hinges on Ethereum developments and scaling opportunities within decentralized finance. Ethereum’s evolving staking landscape continues to shape Bit Digital’s business model and strategic priorities.