TL;DR
- Bit Digital fully shuttered its Bitcoin mining ops after Q1 revenue plunged 64%, and will convert its remaining 417.6 BTC ($35M) into Ethereum.
- The company tapped its greenshoe option to lift its equity raise to $162.9M, issuing 86.25M shares and pushing its market cap toward $600M.
- With 24,434 ETH on its books and Q1 staking rewards up 72%, Bit Digital is doubling down on PoS yields, expanding validator infrastructure, and riding the institutional Ethereum wave.
Bit Digital, listed on Nasdaq, has declared the full cessation of its Bitcoin mining activities, indicating a significant change in its business strategy. The company began a process to explore strategic alternatives in late June, assessing the sale of assets and the closure of infrastructure at its facilities in the U.S., Canada, and Iceland.
This move comes after a 64% year-over-year revenue decline in Q1 2025 from mining, driven by higher network difficulty and halving headwinds. Bit Digital will gradually convert its remaining 417.6 BTC stack, worth roughly $35 million, into Ethereum to power its new focus.
Record $163M Equity Raise Fuels ETH Treasury
To bankroll its Ethereum pivot, Bit Digital fully exercised the underwriters’ greenshoe option in its recent public offering, lifting the total to 86.25 million shares and generating approximately $162.9 million in net proceeds. The initial tranche had already covered $141.5 million, with the extra $21.4 million unlocking today.
Led by B. Riley Securities, the deal closed on July 1 under SEC-approved terms. Bit Digital’s share price climbed nearly 4% in after-hours trading, lifting its market cap to around $600 million and signaling investor confidence in the Ethereum strategy.
Building a Pure-Play Ethereum Staking Operation
Having begun accumulating ETH in 2022, Bit Digital holds 24,434.2 ETH, valued at about $60 million, while earning 211 ETH in staking rewards in Q1 alone, a 72% increase from the year prior. The newly raised capital will bolster native staking infrastructure and expand validator management capabilities.
By focusing on Proof-of-Stake yields instead of energy-intensive mining, Bit Digital aims for more predictable long-term returns and alignment with ESG considerations. Proceeds from mined-asset divestitures will be redeployed into ETH purchases and staking node expansion.
Riding the Institutional Ethereum Wave
Bit Digital’s move reflects a broader trend among public companies embracing crypto treasuries, particularly under a pro-crypto regulatory backdrop. Firms like SharpLink Gaming and BitMine Immersion have already amassed hundreds of millions in ETH, eyeing staking yields as an institutional staple.
With U.S. spot Ethereum ETFs going strong and staking yields remaining competitive, Bit Digital positions itself to capture this growing on-chain capital flow. As the company transitions away from Bitcoin’s halving cycles, its full-throttle Ethereum thesis could set the tone for crypto infrastructure’s next chapter.
