26.06.2025 21:52

Bit Digital, a cryptocurrency mining firm, has announced a strategic shift away from Bitcoin (BTC) mining towards a focus on Ethereum (ETH). This phased transition involves gradually selling or decommissioning its Bitcoin mining operations and reinvesting the proceeds into expanding its Ethereum holdings. The decision follows a period of declining profitability for the company.

As of March 31st, Bit Digital held 24,434.2 ETH and 417.6 BTC. The company aims to become a "pure-play Ethereum staking and treasury company," a strategy that involves leveraging its existing Ethereum reserves and further acquisitions fueled by the sale of its Bitcoin assets and company stock. A complete conversion of its Bitcoin holdings to Ethereum would significantly boost its Ether reserves to over 42,000 ETH.

This strategic pivot was met with negative market reaction, resulting in a 3.69% drop in Bit Digital's stock price (BTBT) to $2.35 on Wednesday. Investor concerns center around the company's ability to successfully diversify its revenue streams and its recent financial performance, which saw an 18% year-over-year decline in net revenue during the March quarter and a substantial 240% decrease in net profit margin.

Despite these challenges, Bit Digital continues to invest in its long-term growth strategy. In April, the company invested $53 million in acquiring an industrial facility in Madison, North Carolina, to bolster its artificial intelligence and high-performance computing capabilities. This expansion, coupled with its increasing Ethereum exposure, reflects a broader trend among some publicly traded companies diversifying their crypto holdings beyond Bitcoin. The company, however, has not provided a specific timeline for completing the transition.