Bit Digital plans to invest $1 billion in Ethereum



Bit Digital has decided to shift its focus from the market leader — Bitcoin (BTC) — to Ethereum (ETH).

On July 25, the company filed an application with the U.S. Securities and Exchange Commission (SEC), proposing to increase the share capital from 340 million to 1 billion common shares.

Bit Digital plans to raise $10 million to increase its Ethereum reserves.
According to the application, the new capital will go towards the purchase of Ethereum. The company plans to raise around $10 million, and the shareholder vote is scheduled for September 10. Funds from the stock issuance will also support corporate initiatives, including mergers and acquisitions, employee compensation, dividends, and general operations.

Bit Digital believes that the current equity structure limits scaling opportunities, especially within the framework of a long-term growth strategy focused on Ethereum. This proposal reflects a significant shift in the company's strategy. Previously known as one of the largest Bitcoin miners, Bit Digital now considers Ethereum as the primary treasury asset.

In early July, the company sold 280 bitcoins from its reserves, reallocating about $172 million to increase its Ethereum holdings. After that, the token balance on Bit Digital's balance sheet grew from 24,434 ETH to over 100,600 ETH. An additional purchase of 19,683 ETH on July 18 increased the total amount to approximately 120,306 ETH.

The company has entered the top ten largest holders of Ethereum reserves, ranking behind only SharpLink and BitMine. These companies own more than 2.3 million ETH, which amounts to nearly $9 billion.

Bit Digital's aggressive accumulation strategy demonstrates the company's growing confidence in the future of Ethereum.
ETH-0.73%
BTC-0.29%
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