Skip to main content

Bit Digital Plans To Purchase More ETH – Is Ethereum Finally Back On Track?

Bit Digital, a computing infrastructure firm long associated with Bitcoin mining, is shifting gears and transitioning to Ethereum. The company has begun offloading Bitcoin reserves and significantly increasing its exposure to Ethereum. 

However, according to additional equity financing plans filed with the US Securities and Exchange Commission (SEC), it’s clear that Bit Digital’s pivot to ETH is just beginning. The timing could be more better, as Ethereum is currently gaining momentum in both price and institutional support.

SEC Filing Reveals Ongoing ETH Accumulation Plan

Bit Digital’s transition to Ethereum began in earnest earlier this month. On July 8, Bit Digital sold 280 BTC worth roughly $172 million to acquire over 100,600 ETH. That initial purchase was followed by an additional 19,683 ETH on July 18, bringing the company’s Ethereum holdings to approximately 120,306 ETH. Interestingly, these purchases have now placed Bit Digital among the top ten publicly known corporate holders of Ethereum.

The company didn’t keep quiet about its reasoning. In a statement posted to the social media platform X, Bit Digital explained its strategy shift is based on broader macroeconomic trends: “Why Ethereum? Why now? Society is entering a new monetary era.” The post highlighted volatile interest rates, inflation risks, and diminishing faith in fiat currency as key motivations for the switch to Ethereum. More importantly, it described Ethereum as offering both capital growth and native yield through staking, advantages that outshine traditional treasury strategies and even surpass Bitcoin’s use case as a store of value.

According to a filing submitted to the SEC on July 25, the company is seeking shareholder approval to increase its authorized share capital from 340 million to 1 billion ordinary shares. The proposed increase would raise total share capital from $3.5 million to $10.1 million while leaving preference shares unchanged. 

In its SEC filing, Bit Digital makes it clear that the move is aimed at securing additional equity financing soon, specifically to support its growth plans centered around Ethereum purchases. A shareholder vote to approve the proposal is set for September 10, 2025. 

Ethereum Outperforming Bitcoin

Interestingly, Ethereum’s price action has picked up notably since Bit Digital initiated its ETH strategy. ETH has surged by about 51% since the beginning of the month, and the ETH/BTC trading pair is up about 35%, clear signs that the market may be rotating toward Ethereum. This trend is further reinforced by continued inflows into Spot Ethereum ETFs, which have now seen 16 consecutive days of positive net flows.

According to on-chain analytics platform Sentora (formerly IntoTheBlock), between $7.5 billion and $8 billion has flowed into US-listed ETH ETFs since July 2. This wave of institutional capital has helped push aggregate assets under management (AUM) well beyond initial projections, turning once-skeptical observers into believers.

Image From X: Sentora

Ethereum’s recent performance mirrors this inflow trend, as it is now trading at its highest levels this year. Ethereum began the week with gradual gains, dipped midweek, and rebounded with conviction. As of now, ETH is trading around $3,775, up roughly by 5% in the past seven days. 

Featured image from Pexels, chart from TradingView



from Bitcoinist.com https://ift.tt/PTpNxDB
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more