Bit Digital (BTBT) announced yesterday that it has sold its Bitcoin (BTC) holdings and transferred all its assets to Ethereum (ETH). The company also used funds raised through a public offering to purchase Ethereum.
As a result, Bit Digital has become one of the largest listed Ethereum holders with 100,603 ETH, valued at $254.8 million.
Bit Digital Exchanges Bitcoin for Ethereum
According to the press release, the company liquidated 280 BTC, securing approximately $28 million. Combined with $172 million raised through a public offering, they acquired $192.9 million of ETH.
THIS COMPANY SOLD ALL OF THEIR BTC AND BOUGHT $200M OF ETH
— Arkham (@arkham) July 7, 2025
Bit Digital just acquired $192.9M ETH after raising ~$172M from a public offering, and selling their entire holdings of BTC, worth ~$28M.
Bit Digital now holds a total of $254.8 Million of ETH. pic.twitter.com/nV3P9vhZU8
This acquisition signifies Bit Digital's complete transition from a Bitcoin mining-centered to an Ethereum-centered asset strategy. As of March 31, 2025, the company held 24,434 ETH, and recent purchases have increased this by over four times. The company also plans to actively increase its Ethereum holdings.
"We are returning to our roots: a cryptocurrency company established as an Ethereum asset platform, focusing on ETH, one of the most influential assets of our generation. There is no second place," Bit Digital wrote.
In an interview with CNBC, CEO Sam Tabar emphasized the company's confidence in Ethereum's long-term potential.
"Many investors felt they missed the Bitcoin wave. Ethereum represents the next wave," he said.
He explained that the company is not simply purchasing cryptocurrencies but allocating assets to protocols facilitating trillions of on-chain transactions. Tabar sees Ethereum emerging as a new strategic corporate asset, comparable to gold and government bonds, but with the key difference that it is 'alive'.
He added that Ethereum has a larger developer community compared to Bitcoin or Solana (SOL) and is actively driving real economic activity.
"Ethereum captures real activity, real economic activity. As stablecoin transaction volumes increase and tokenization becomes a reality, the fees generated from that activity return to ETH holders, while Bitcoin does not participate in that feedback loop and value loop. We believe Ethereum is where economic throughput is heading," Tabar stated.
This announcement triggered a strong market response. According to Google Finance data, Bit Digital's stock price closed 18.37% higher on July 7th. The company also rose an additional 10.3% in after-hours trading, reflecting investor confidence in the new strategy.
This surge follows a trend seen in other companies transitioning to an Ethereum-centered strategy. For instance, Bitmain saw its stock price increase by 684.8% after dedicating itself to an Ethereum asset strategy.
Besides Bit Digital and Bitmain, another company, Sharplink, now holds ETH worth $462.9 million, becoming the largest ETH holder among listed companies. This rapid accumulation suggests increasing demand for ETH as a reserve asset.
In a post on X, analyst Eric Conner revealed that these companies have purchased a total of 388,000 ETH. Meanwhile, the quantity of ETH issued during the same period is approximately 70,000, indicating that demand exceeds supply, which is a positive market signal.
"The wave of ETH demand from listed companies is exceeding new issuance and is now being reinforced as miners transition from proof-of-work to proof-of-stake rewards. Keep an eye on the next 10-Q reports. ETH on corporate balance sheets could be the hidden indicator of this cycle," he posted.
Therefore, the increasing trend of companies accumulating ETH as a reserve asset is noteworthy this year. While corporate Bitcoin accumulation had a positive impact on price, it remains to be seen whether the same long-term effect will occur with ETH as more companies participate.
