Shares of Bit Digital (NASDAQ: BTBT) dropped by 3.69% on Wednesday, June 25, after the crypto mining company revealed plans to exit Bitcoin mining entirely, shifting its focus to Ethereum staking and treasury operations.
The company disclosed it would gradually sell off its Bitcoin mining infrastructure and convert its entire BTC holdings to Ether (ETH). However, no timeline was provided for completing the transition.
Bit Digital says its strategy is to transform into a “pure play Ethereum staking and treasury company,” a move that builds on its earlier ETH initiatives. The firm began accumulating Ether and developing its staking infrastructure back in 2022.
As of March 31, Bit Digital held 24,434.2 ETH and 417.6 BTC in its reserves. A full conversion of its Bitcoin holdings at current rates could increase its ETH treasury by over 18,000 ETH, pushing the total to more than 42,000 ETH.
In a further push to grow its Ether holdings, Bit Digital announced it would raise capital by selling company stock, with proceeds earmarked for ETH purchases.
The market reaction to the shift was swift. Bit Digital’s shares closed the day at $2.35, down 3.69%. The decline continued in after-hours trading, with shares slipping another 3.83% to $2.26, according to Google Finance.
Despite the challenges, Bit Digital is expanding into new verticals. In April, it acquired a $53 million industrial facility in Madison, North Carolina, to support its artificial intelligence and high-performance computing operations.
The move to deepen ETH exposure follows a growing trend among public companies. SharpLink Gaming recently purchased $463 million worth of Ether on June 13, becoming the largest publicly traded holder of ETH. The company added another $30 million in Ether on Tuesday.
According to data from Strategic ETH Reserve, Bit Digital now ranks as the third-largest publicly traded ETH holder, trailing SharpLink and crypto exchange Coinbase.
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