Bit Digital Eyes $10M Ethereum Investment Amid Strategic Shift
Bit Digital, a Nasdaq-listed crypto firm, is significantly increasing its investment in Ethereum, moving away from its previous focus on Bitcoin.
In a July 25 filing with the US Securities and Exchange Commission (SEC), the company announced plans to increase its authorized share capital from 340 million to 1 billion ordinary shares.
$10 Million Raise to Boost Ethereum Holdings
The SEC filing indicates that the primary use of the new capital will be to acquire more Ethereum. Bit Digital aims to raise approximately $10 million, with a shareholder vote scheduled for September 10.
The company clarified that the funds from the share issuance would also support general corporate activities, including:
- Mergers and acquisitions
- Employee compensation
- Dividend distributions
- General operations
Bit Digital believes its current share capital structure limits its growth potential, especially concerning its long-term Ethereum-centric strategy.
This proposal marks a significant shift in the company’s strategy. Once primarily a Bitcoin mining business, Bit Digital now considers Ethereum a key treasury asset.
Earlier in July, the firm sold 280 Bitcoin from its reserves, reallocating approximately $172 million to increase its Ethereum holdings.
Following this reallocation, Bit Digital’s Ethereum holdings increased from 24,434 ETH to over 100,600 ETH. An additional purchase of 19,683 ETH on July 18 further increased its total to approximately 120,306 ETH.
This places Bit Digital among the top 10 Ethereum reserve holders, following SharpLink and BitMine. Collectively, these firms hold over 2.3 million ETH, valued at nearly $9 billion.
Bit Digital’s aggressive accumulation strategy highlights its increasing confidence in Ethereum’s future.
“ETH can offer a rare combination of capital appreciation and native yield, making it an institutional titan. Its value is reinforced by strong onchain utility and a global community of developers. No other asset, including BTC, matches the depth of its ecosystem and built-in earning potential,” Bit Digital stated.
In addition to accumulating Ethereum, the company actively stakes its holdings and operates Ethereum validators, turning its treasury into a yield-generating asset base.
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