Bitcoin mining firm Bit Digital has collected $150 million through a public stock offering to support its business transition. The company has begun moving away from Bitcoin mining and plans to invest deeply in Ethereum staking and treasury management.
Bit Digital sold 75 million shares for $2 each, offering another 11.25 million shares to underwriters through a 30-day option. This funding allows the firm to buy Ethereum and continue restructuring its business model in response to shifting industry trends.
The company has stated it will exit Bitcoin mining entirely, a segment it saw expanding operational troubles and falling profitability. Bit Digital was highly reliant on outsourced mining centers such as Coinmint, whose contract expired at the end of 2023, shutting down their mining facilities.
Until 31st March, Bit Digital held about 24,434 Ethereum and 418 Bitcoin with a view of exchanging all BTC into ETH. It is a strong commitment towards Ethereum, considering unprofitable trends of the market impacting the conversion of ETH/BTC of late.
Bit Digital expands with Bitcoin and computing offering
In mid-2024, Bit Digital sold 452 Bitcoin to acquire Ethereum at a rate of roughly 0.048 ETH per BTC. That ratio has since dropped below 0.023, reducing the value of that earlier trade, yet the company has remained confident in its Ethereum pivot.
Bit Digital’s decision mirrors wider industry pressure, particularly on companies with limited influence over mining infrastructure and increasing cost of operations. The firm’s action also reflects optimism about Ethereum’s future ecosystem and staking arrangement.
Beside crypto assets, Bit Digital is also quietly developing a public offering of its subsidiary, WhiteFiber Inc., which offers high-speed computing services. Though the terms and timeline of this transaction aren’t revealed yet, this signals another diversification into digital infrastructure aside from crypto mining.
Bit Digital restructuring demonstrates how cryptocurrency companies change their strategies as a form of adapting within a constantly changing economic climate.
