Bit Digital Pivot To Ethereum From Bitcoin
Bit Digital's shares fell nearly 4% after announcing plans to wind down or sell its Bitcoin mining infrastructure to invest in Ether. The company intends to convert its entire Bitcoin holdings to Ether but did not provide a timeline for this transition. Bit Digital aims to become a dedicated Ethereum staking and treasury company, having begun ETH purchases and staking services in 2022. As of March 31, the firm held 24,434.2 ETH and 417.6 BTC. If all Bitcoin were converted, ETH reserves would exceed 42,000. The stock price dropped to $2.35, down nearly 25% year-to-date and 39% from its January peak. For the March quarter, net revenue declined by 18%, and profit margins fell by 240%. Bit Digital also sold stock to fund more Ether purchases. Other firms, like SharpLink Gaming, have increased their ETH holdings recently, with Bit Digital being the third largest publicly traded holder of ETH.
