Bit Digital (BTBT), a publicly traded digital asset agency, has introduced that it’ll wind down its Bitcoin (BTC) mining operations and transition into an Ethereum (ETH) staking and treasury administration firm.
This resolution marks the top of an period for the agency, which has Bitcoin mining operations throughout the US, Canada, and Iceland. The shift displays a rising recognition of Ethereum’s financial benefits.
Bit Digital Steps Away from Bitcoin, Shifts Complete Focus to Ethereum
In response to the press launch, Bit Digital’s strategic pivot additionally includes promoting off its BTC holdings and redeploying the proceeds into Ethereum. The agency has steadily increased its Ethereum holdings and likewise operated staking infrastructure since 2022.
“As of March 31, 2025, the Firm held 24,434.2 ETH and 417.6 BTC, valued at roughly $44.6 million and $34.5 million, respectively, as of that date. Bit Digital intends to transform its BTC holdings into ETH over time,” the firm famous.
As a part of the transition, the agency has began evaluating strategic options for its Bitcoin mining operations. This may increasingly end result of their sale or shutdown. Furthermore, Bit Digital will make investments any funds from this course of into Ethereum.
That’s not all. The corporate introduced a public providing of its atypical shares in a separate press release. Bit Digital plans to make use of the funds to acquire Ethereum.
Nonetheless, the ultimate phrases and measurement of the providing are nonetheless unsure. The choice comes amid rising Bitcoin mining costs and record-high hashrate.
“Bitcoin mining is energy-intensive, hardware-dependent, and more and more margin-constrained. Ethereum staking, against this, gives cleaner economics — yield with out the costly power prices and quickly depreciating property. Because of this I consider Bit Digital made this transition,” BTCS CEO Charles Allen wrote.
Not too long ago, BeInCrypto reported that the cost of mining a single Bitcoin rose to $64,000 in Q1 2025, up 23% from $52,000 in This autumn 2024. Moreover, the manufacturing prices are projected to exceed $70,000 this quarter.
There’s additionally elevated competitors, as evidenced by rising Bitcoin mining issue. It reached 126.98 trillion, fueled by a 14-day common hashrate of 913.54 EH/s. Regardless of this, transaction charges have remained low, constituting just one.3% of block rewards in Could and dropping to underneath 1% in June.
Allen defined that Bitcoin mining faces diminishing returns on account of excessive prices and fixed infrastructure funding. Miners typically have to promote their Bitcoin to cowl these bills, lowering their publicity and including volatility to their holdings.
Then again, Bitcoin treasuries provide exposure to BTC however generate little to no income. In response to him, an Ethereum-focused strategy presents a hybrid strategy.
It gives asset publicity and recurring yield with out the excessive prices of mining gear and depreciation.
“That is possible just the start. Because the financial actuality of proof-of-stake turns into extra broadly understood, extra crypto-native firms — particularly miners — will start to rethink their methods,” Allen added.
In the meantime, Bit Digital’s transfer didn’t influence its inventory costs positively. Google Finance knowledge confirmed that BTBT was down 3.69% on the market shut.
The inventory costs fell additional by 3.83% in after-hours buying and selling. Nonetheless, the decline is just not new. BTBT has been in a protracted downtrend, declining 29.4% over the previous 12 months.
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