Bit Digital Sells All Bitcoin, Switches to Ethereum
Bit Digital, a crypto mining company based in New York, has sold all 280 of its Bitcoin and used the money to buy Ethereum. This marks the end of a three-month plan to focus only on Ethereum.
On July 7, the company announced it also raised about $172 million from selling shares. Most of this money was used to buy more Ethereum. Their Ethereum holdings jumped from 24,434 ETH at the end of March to around 100,603 ETH now.
The company’s CEO, Sam Tabar, said Ethereum is more flexible than Bitcoin and offers rewards through staking. He believes this makes it a better long-term investment.
Bit Digital now wants to buy even more Ethereum and become known as a company focused only on Ethereum in the stock market.
In the past, the company held both Bitcoin and Ethereum and earned income through mining and running validator nodes. But now, Bit Digital holds only Ethereum, worth around $261 million based on the current price of $2,600 per ETH.
The company plans to stake most of its Ethereum. This means locking up the coins to help run the Ethereum network and earn rewards, which can help pay for company operations and future investments.
Why This Matters
Crypto developer Eric Conner shared on social media that Bit Digital’s Ethereum holdings grew four times bigger in just three months. He said this move shows how staking can help companies earn steady income.
He also compared this strategy to other companies that still stick with Bitcoin. Conner pointed out that public companies are buying more Ethereum than the amount being created each month, mentioning similar moves by big names like Tom Lee and Joseph Lubin.
Bit Digital’s new strategy reflects a larger trend. After Bitcoin’s recent “halving” (which reduced mining rewards), many former Bitcoin miners are moving to Ethereum’s proof-of-stake system. This new system lets companies earn around 4% annually without high electricity costs.
