Bit Digital, a publicly listed American Bitcoin (BTC) mining company, said on Monday that it had completed its full transition to an Ether (ETH)-only treasury strategy, becoming the second-largest publicly listed ETH-holding company after Coinbase.
Bit Digital Completes its Transition to Ether-only Treasury Strategy
14 July 2025 - 16:38 CEST
Bitcoin out, ETH in
The company first announced this pivot in late June, revealing plans to transform into a pure play ETH staking and treasury firm – a complete exit from Bitcoin mining. As of 7 July, Bit Digital holds a reserve of 100,603 ETH, currently valued at over $260 million – a four-fold increase from its previous balance of 24,434 ETH. The purchase was financed through the sale of its remaining Bitcoin and its recent public offering, which raised more than $170 million through the issuance of new shares.
"That's just the start – we’re just getting warmed up."
“We have accumulated about 100,000 [ETH] on our balance sheet and we’re just getting started. That’s just the start – we’re just getting warmed up.” said CEO Sam Tabar in an interview with CNBC on 7 July, reassuring investors that the company’s recent acquisition of around 76,000 ETH is only the beginning of his broader plan to fully expose Bit Digital’s shareholders to ETH’s ups – and downs.
Bit Digital's Bitcoin legacy
Bit Digital was once one of the largest publicly listed Bitcoin holders, with just over 1,000 BTC – a position it started building in 2020. The company was one of the earliest to adopt a Bitcoin treasury strategy, even holding Bitcoin a few months ahead of Strategy (previously MicroStrategy), placing it among the pioneers of the movement. By mid-2024, it held 1,038 BTC, which made it the 18th largest public holder according to Bitcointreasuries.net.
Data from Bit Digital
Even though Bitcoin’s price crossed $100,000 in early 2025, Bitcoin mining margins have been squeezed hard. In April, the halving event cut block rewards from 6.25 to 3.125 BTC. At the same time, the network’s hash rate – a measure of how much computing power is being used by Bitcoin miners – continued rising, reaching a record 831 EH/s in May – meaning miners were facing growing competition. To make matters worse, transaction fees fell to a three-year low. With both revenue streams under pressure and energy costs still high, many miners have found it difficult to sustain their operations.
Shares take a ride
Following the initial announcement, Bit Digital’s stock fell 16% overnight to $1.97 – its lowest point since April – as markets reacted to the abrupt strategic shift. Over the following two weeks, shares more than doubled in price to this year’s high of $4.30.
When Bit Digital unveiled its new strategy, the company’s stock was already down 18% year-to-date and trading at just 7% of its all-time high of $33 in January 2020. Earlier this year, it reported first-quarter Bitcoin mining revenue of $7.8 million – a 64% decline compared with the same period last year – and mined only 83 BTC, an 80% year-over-year drop.
Miners join the ETH wave
Bit Digital isn’t alone in its pivot. Another American miner, BitMine Immersion Technologies, also recently announced plans to adopt an ETH treasury strategy. Its stock price soared nearly 3,000% in the week following the announcement. Blockchain Technology Consensus Solutions (BTCS), a US-based blockchain infrastructure company, announced plans on Tuesday to acquire $100 million of ETH and saw its shares rally 111% in response.
ETH ETF inflows have also recovered in recent weeks, following two months of net outflows in March and April.
“Eventually, Ethereum will eat the financial world.”
Bit Digital’s pivot is a bet that ETH will offer better long-term upside than Bitcoin mining ever could. The company is now fully tied to ETH – its price, its staking yields, its network growth, and its volatility.
Whether or not that bet pays off, the move marks one of the boldest strategic shifts yet among public crypto firms. As the company’s chief executive puts it: “Ethereum is the only blockchain that allows for [tokenization] in an institutional manner. Robinhood is tokenizing equities on Ethereum. That’s just the start. Eventually, Ethereum will eat the financial world.”
Time will tell if he’s right – but Bit Digital has clearly decided there’s no turning back.
