Ethereum Becomes the Crown Jewel in Bit Digital’s $150M Strategy

Digital asset platform, Bit Digital announced a $150 million capital raise through a public offering. The company plans to channel the majority of the funds into Ethereum accumulation, staking infrastructure, and treasury optimization.

From Bitcoin to Ethereum

Bit Digital revealed that it will issue 75 million shares priced at $2 each. An additional 11.25 million shares have been made available to underwriters through a 30-day option. Once finalized, the offering is expected to generate $150 million in gross proceeds.

According to the company, the funds will primarily be used to acquire Ethereum and expand its staking and treasury operations. Bit Digital has already accumulated 24,434 ETH, valued at over $59 million at current prices, alongside 417.6 BTC. However, the firm now plans to convert its entire Bitcoin holdings into Ethereum over time.

Bit Digital is actively exploring options for its Bitcoin mining division, indicating a likely full departure from the BTC mining sector. Any revenue generated from asset divestitures will be funneled into Ethereum-related growth.

Ethereum Staking at Scale

Founded as a digital asset platform, Bit Digital began building its ETH infrastructure in 2022. It has since developed one of the largest institutional-grade Ethereum staking operations in the world. Its staking platform includes validator management, secure custody, protocol governance, and yield optimization tools.

The company’s goal is to expand these capabilities significantly. With a war chest of new capital, Bit Digital plans to enhance validator uptime, improve governance engagement, and optimize ETH-based yield strategies. This includes participation in Ethereum’s roadmap, like EIP upgrades and restaking protocols, which require deep infrastructure and liquidity.

The move puts Bit Digital in line with other large institutions embracing Ethereum’s shift to proof-of-stake. 

WhiteFiber IPO and Market Reaction

In a parallel announcement, Bit Digital confirmed that its high-performance computing arm, WhiteFiber Inc., has submitted a confidential draft registration for a potential IPO. While exact timing, share pricing, and offering size remain undisclosed, this indicates another layer of growth-oriented restructuring at the firm.

However, investors reacted coolly to the news. Bit Digital’s stock (BTBT) dropped 15.32% following the announcement, closing at $1.99 per share, according to Yahoo Finance. The dip likely reflects investor uncertainty over the firm’s exit from Bitcoin and the risks associated with Ethereum’s market volatility.

Still, analysts argue the long-term thesis remains intact. If ETH continues to serve as the backbone for DeFi, NFTs, RWAs, and institutional staking, then Bit Digital’s ETH-first approach could position it as a leader in the next phase of Web3 finance.

Ethereum as the New Corporate Reserve

Bit Digital’s move shows what more firms are now doing—choosing ETH as their go-to reserve asset over everything else. Strategic reserves of ETH among institutions recently hit 1.19 million coins, according to data from June 19.

With Bitcoin ETFs flooding the market and many corporates chasing BTC exposure, a subset of firms are quietly building massive ETH holdings instead—either for staking rewards or exposure to Ethereum’s broader financial ecosystem.

By betting on staking rewards and Ethereum’s evolving use cases in DeFi, RWAs, and Layer-2 infrastructure, the company is doubling down on what it sees as the foundation of the next financial system.

Once this offering closes on June 27, Bit Digital could hold over $209 million in ETH, assuming current prices remain steady. That would make it one of the largest Ethereum-focused public companies in the U.S. market.