- Bit Digital intends to raise equity of 67.3M to invest in Ethereum only.
- Proceeds will boost Bit Digital’s massive ETH treasury.
- Move is consistent with its long-term vision of interaction with the Ethereum network.
Bit Digital, a bitcoin mining infrastructure provider listed on the Nasdaq, has chosen to offer 22 million more shares to institutional investors in an effort to garner $67.3 million. The tangible objective: to increase its Ethereum treasury, with the company taking a pitiful turn away from Bitcoin reserves.
In late June and early July, Bit Digital was able to accomplish a major portfolio reshuffle. It is now one of the largest corporate Ethereum treasuries in the world, with holdings of over 100,600 coins worth over 301 million USD, having grown from 280 Bitcoins reinvested into Ethereum.
Aggressive Shift Highlights Growing ETH Momentum
The firm’s offering, managed by B. Riley Securities is scheduled to conclude the offering by July 15th and has priced it at $3.06 per share. The company will use the funds received in this direct offering solely to buy Ethereum, expressing explicit confidence in the leading coin’s future.
This investment is the second investment of Bit Digital that started amassing Ethereum earlier in 2022. The recent decision of the company to pay a bit more attention to Ethereum staking, instead of Bitcoin mining, is a broader institutional interest in Ethereum. The move is in line with its plan to stop Bitcoin mining and redirect the funds to the Ethereum network for staking and verification.
This direction is a continuation of the overall trend of increasing investment in crypto treasury by public companies, where Ethereum has received specific interest in particular because of its staking rewards and programmable blockchain platform.
Institutional Investors Demand Ethereum Exposure
The capital raise by Bit Digital is an example of the increasing interest in direct exposure to Ethereum by institutional investors seeking direct exposure to Ethereum via corporate treasuries. The company made a major bet on the dominance and strength of the ETH ecosystem by exchanging its Bitcoin holdings for Ethereum.
By Q1 2025, Bit Digital had approximately 24,434 ETH and 417.6 BTC. The company has been aiming to gradually sell what it holds in Bitcoin to exchange it into Ethereum to boost staking returns and widen its crypto assets profile.
The impending capital allocation of $67.3 million follows the earlier $163 million raised by the company in a comparable campaign to increase its Ethereum treasury, which speaks to the dedication to this transition on the part of Bit Digital. The sum of money raised over recent weeks has provided the company with unmatched Ethereum buying capacity.
Stocks sold at this offering have a price that reflects the interest of institutions in securing a stake in crypto companies that actively implement the approach toward treasury management that puts more emphasis on Ethereum rather than Bitcoin.
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