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Investing.com -- Bit Digital Inc (NASDAQ:BTBT) stock rose 4% following the company’s announcement that it has purchased approximately 19,683 Ethereum (ETH) using proceeds from its recent $67.3 million registered direct offering to institutional investors.
The cryptocurrency mining company now holds approximately 120,306 ETH, positioning it "among the largest institutional Ethereum treasuries in the public markets," according to CEO Sam Tabar. The purchase aligns with Bit Digital’s strategy to scale its ETH holdings as part of its long-term investment approach.
Bit Digital views Ethereum as foundational to the future of digital financial infrastructure, citing its programmable nature, growing adoption, and staking yield model. The company stakes the majority of its ETH holdings and operates validators to earn yield while contributing to the Ethereum network’s security and performance.
The company emphasized that ETH serves as core collateral for stablecoins, tokenized assets, and decentralized applications. Through its operational involvement with Ethereum infrastructure, Bit Digital aims to offer investors regulated exposure to Ethereum’s economics through a traditional equity vehicle.
This purchase comes after Bit Digital recently completed a $67.3 million registered direct offering to institutional investors, with the proceeds being used to expand its Ethereum holdings.
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