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Investing.com -- Bit Digital Inc (NASDAQ:BTBT) stock dropped 10% after the cryptocurrency mining company announced a strategic transition to become a pure-play Ethereum staking and treasury company, along with plans for a public offering of ordinary shares.
The Nasdaq-listed firm revealed it will be converting its Bitcoin holdings to Ethereum over time and has begun a strategic alternatives process for its Bitcoin mining operations that is expected to result in their sale or wind-down. As of March 31, 2025, Bit Digital held 24,434.2 ETH and 417.6 BTC, valued at approximately $44.6 million and $34.5 million, respectively.
Alongside this strategic shift, the company announced an underwritten public offering of its ordinary shares, with B. Riley Securities acting as the sole bookrunning manager. Clear Street, Craig-Hallum, and Northland Capital Markets are serving as co-managers for the offering. Bit Digital intends to use the net proceeds from the proposed offering to purchase additional Ethereum.
The company began accumulating ETH and operating staking infrastructure in 2022 and has steadily increased its holdings since that time. The strategic pivot comes as Ethereum has gained prominence in the cryptocurrency ecosystem following its transition to a proof-of-stake consensus mechanism, which allows ETH holders to earn rewards by staking their tokens.
The terms and size of the public offering have not been finalized, with the company noting there can be no assurance as to whether or when the offering may be completed.
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