Bit Digital Bolsters Ethereum Treasury with $163 Million Share Offering

Bit Digital, Inc. (NASDAQ: BTBT), a publicly listed digital asset firm, has raised $162.9 million in net proceeds through a public offering of 86.25 million ordinary shares at $2.00 per share, announced on July 2, 2025.

The raise includes $21.4 million from the full exercise of underwriters’ option to purchase an additional 11.25 million shares. Proceeds will be used to strengthen the firm’s Ethereum (ETH) treasury and expand its staking operations, with plans to gradually convert its 417.6 BTC holdings—valued at approximately $44.9 million—into ETH.

As of March 31, 2025, Bit Digital held 24,434.2 ETH (worth $59.8 million at an ETH price of $2,444), making it one of the largest ETH-staking public companies.

The offering was managed by B. Riley Securities, with Clear Street, Craig-Hallum, and Northland Capital Markets as co-managers, under a shelf registration effective June 20, 2025.

Stock Surge and Corporate Crypto Trends

Following the announcement, Bit Digital’s stock price surged 20.64% in 48 hours — from around $2.18 to $2.63 — approaching its all-time high of $2.72. The rally reflects investor confidence in the company’s Ethereum-centered strategy.

On June 25, 2025, the company announced its exit from Bitcoin mining, which triggered a sharp stock price decline of nearly 19% over the week, closing at $1.99. The stock has since recovered to its prior high levels, reflecting renewed market optimism.

The raised capital will support validator infrastructure and additional ETH purchases, in line with a broader trend of public companies integrating crypto assets into their treasuries.

Globally, corporate ETH reserves now exceed 1.2 million, with companies like SharpLink Gaming (NASDAQ: SGLK) holding over 202,000 ETH.

Ethereum’s proof-of-stake system, which offers attractive yield potential, continues to gain institutional traction amid a favorable U.S. regulatory landscape.

Navigating Risks in Bitcoin Mining Exit

The company’s pivot to Ethereum was driven by a 64% revenue drop in its Bitcoin mining business during Q1 2025, leading to a full exit from mining and the spin-off of its WhiteFiber AI unit.

The $162.9 million raise supports Bit Digital’s transformation into a pure-play ETH staking and treasury firm, utilizing its 24,434.2 ETH holdings to generate on-chain yields.

Despite the strategic shift, concerns remain over shareholder dilution from the large share issuance, as well as exposure to Ethereum’s price volatility.

Nonetheless, the move signals strong conviction in Ethereum’s long-term potential as a corporate treasury asset.