From BTC to ETH: Bit Digital’s Shift Triggers Market Slide

On June 26, Bit Digital stated that it would sell 75 million new shares at $2 each. The goal is to raise funds to expand its Ethereum holdings and grow its staking operations.

This follows Bit Digital’s decision to shift its focus from Bitcoin BTC $62,888.12 to Ethereum ETH $1,664.49 . The company stated on June 25 that it plans to become an Ethereum-only staking and treasury business.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What Is Chia? | Crypto Finally Explained

SUBSCRIBE

ON YOUTUBE

The market reaction has not been positive. After the company shared its new strategy, its stock fell by nearly 4%. The decline continued after the public offering was announced, with shares dropping by 15% in just one day.

Bit Digital’s stock fell nearly 19% over the whole week, which went from $2.40 to $1.86 before ending on June 27 at $1.99.

The company had already started building its ETH reserves and setting up its staking infrastructure back in 2022.

Bit Digital held 24,434 ETH and 417 BTC, worth about $44.6 million and $34.5 million at the end of March. Once it finishes converting all its Bitcoin into Ethereum, the company expects to hold around 42,000 ETH, which is roughly $103 million based on current prices.

Meanwhile, the Smarter Web Company recently secured £41.2 million ($56.6 million) in new funding after purchasing a large amount of Bitcoin. What did the company say? Read the full story.