Nasdaq-listed Bit Digital has completed a $163 million equity raise specifically to purchase Ethereum, marking a dramatic pivot from Bitcoin mining to ETH treasury accumulation as the company seeks to become a “pure play” staking operation.
According to the announcement, B. Riley Securities led the underwritten public offering, which closed on July 1, with underwriters exercising their full option to purchase additional shares, bringing the total proceeds to approximately $162.9 million after fees.
The company’s revenue from Bitcoin mining decreased by 64% in Q1 2025 compared to the previous year, with earnings of just 83.3 Bitcoin during the quarter, representing an 80% decline from the prior year’s levels.
Bitcoin mining now accounts for only 31% of their total revenue, down from 72% in the same quarter last year, according to company financial reports.
Strategic Shift from Mining to Staking Infrastructure
Bit Digital began accumulating ETH and building staking infrastructure in 2022, positioning itself ahead of what would become a broader institutional trend toward Ethereum treasury strategies.
As of March 2025, the company held 24,434.2 ETH, valued at approximately $44.6 million, alongside 417.6 BTC, worth $34.5 million, with plans to convert its Bitcoin holdings into Ethereum over time.
According to the New York-based firm, the April 2024 Bitcoin halving event, combined with increased network difficulty, created the perfect storm that made mining operations increasingly unprofitable.
Bit Digital now operates approximately 21,568 ETH in native staking protocols, earning 211 ETH in staking rewards during Q1 2025 alone, a 72% increase from the previous year.
Their cloud services revenue also surged 84% year-over-year to $14.8 million, demonstrating the company’s successful diversification beyond traditional crypto mining operations.
Company executives announced they have initiated a strategic alternatives process for their Bitcoin mining assets, with proceeds from all sales to be redeployed into additional ETH purchases.
Growing Institutional Momentum Behind Ethereum Treasury Strategies
Bit Digital’s move is part of a broader accelerating institutional adoption of Ethereum as a corporate treasury asset, following similar strategies deployed by other public companies throughout 2025.
SharpLink Gaming became the world’s largest publicly traded Ethereum holder in June, accumulating 188,478 ETH worth approximately $457 million through aggressive buying campaigns.
BitMine Immersion Technologies recently raised $250 million in a private placement specifically for Ethereum purchases, sending its stock price up 511% in a single trading session.
Healthcare technology firm BioNexus Gene Lab also adopted Ethereum as its primary treasury asset, becoming the first Nasdaq-listed healthcare company to implement such a strategy.
Institutional investors appear to be gravitating toward Ethereum’s staking capabilities due to its promising yield on treasury holdings.
Thomas Lee of Fundstrat Global Advisors, who recently joined BitMine’s board, described Ethereum as a “higher beta” asset than Bitcoin due to its foundational role in stablecoin transactions and decentralized finance applications.
Stablecoin transaction volume, which primarily occurs on Ethereum’s network, could drive significant demand for ETH as the market grows from its current value of $250 billion to $2 trillion by 2028, according to projections from the U.S. Treasury.
Bit Digital’s $163 million commitment comes as Ethereum consolidates between $2,400 and $2,800, following an 80% surge from April lows that attracted institutional attention and validated corporate treasury strategies focused on the world’s second-largest cryptocurrency.
The post Bit Digital Ditches Bitcoin Mining for an All-In Ethereum Staking Play, Raises $163M appeared first on Cryptonews.
