• Bit Digital sold 280 BTC to acquire over 100,000 ETH.
• Ethereum treasury strategy quadrupled ETH holdings since Q1 2025.
• The stock surged 18% on the Ethereum-focused pivot announcement.

Bit Digital’s (BTBT) shares increased 18% after the announcement that the company has emptied its Bitcoin reserve and converted its treasury into Ethereum.

Source – X

The company purchased 192.9 million worth of Ethereum (ETH) with the 280 bitcoins (BTC) it sold, bringing in $28 million, and the $172 million it received in its latest IPO. The transaction raised the Ethereum holdings of Bit Digital by 46,169 Ethereum at the end of Q1 of 2025 to 100,603 Ethereum, with a value of around 254.8 million dollars.

Strategic Pivot to Ethereum Treasury

The transition reflects the change in approach in Bit Digital, which used to be a company with a focus on Bitcoin mining, but is now a company with an Ethereum treasury strategy. The company will further increase its Ethereum stocks and it is even targeting to be one of the largest publicly traded ETH holders. 

Source – X

Bit Digital noted the programmability and staking yield of Ethereum as the main reasons to make the decision, stating that ETH is one of the most influential assets in our time and that there is no second choice.

The CEO, Sam Tabar, stressed that Ethereum is a new type of strategic corporate asset and can be compared to gold and treasury bonds, with the only difference that it is alive. 

He mentioned that Ethereum has a large community of developers and has been used to move trillions of dollars in transactions on-chain that end up producing fees that are sent back to ETH holders, which Bitcoin does not provide. 

According to Tabar, Ethereum is able to track actual economic activity, and the team believes that this activity will eventually flow to Ethereum.

Market Reaction and Industry Implications

 Source: Google Finance

The stock market reacted well as the stock of Bit Digital closed up by 18.37 percent on July 7 and a further 10.3 percent in after-hours trading.  The spike in shares indicates the confidence of investors in the new Ethereum-based strategy of Bit Digital. 

This action of the company is part of a wider trend of companies switching to Ethereum, as other companies such as BitMine and SharpLink Gaming have also raised their ETH reserves substantially. 

BitMine increased by more than 600 percent following an Ethereum treasury pledge, and SharpLink has $462.9 million in ETH, the biggest publicly-traded corporate holder. Analysts note that approximately 388,000 ETH were bought by the public companies, which is much more than 70,000 newly minted, meaning that demand is greater than supply. 

This increasing institutional attention in Ethereum as a reserve asset might affect the future demand of tokens and staking ecosystems within months. Bit Digital infrastructure enables Ethereum-native strategies like staking institutional grade, institutional-grade custody, and protocol governance participation. 

In 2022, the company moved into the Ethereum market and is now one of the institutional stakers worldwide.  The change in strategy emphasizes the growing significance of Ethereum in corporate treasury and digital asset portfolios.