Bit Digital has announced its official departure from Bitcoin mining in favor of Ethereum staking, launching a public share offering totaling $150 million.
Share Offering Announcement
Bit Digital stated that it will issue 75 million shares at $2 each, with an additional 11.25 million shares available to underwriters. The total aims to raise $150 million in capital. The offering is set to close on June 27, subject to customary closing conditions.
Impact on Bit Digital Stocks
Following the announcement to shift focus towards Ethereum, Bit Digital’s stock price plummeted by 15.32%, with the current market value at $1.99. This significant decline reflects the company's strategic shift.
Transition to Ethereum
The company has been accumulating Ethereum since 2022. As of June 14, Bit Digital held around 24,434 ETH and 417.6 BTC. With the public offering, Ethereum holdings are expected to increase to $209.6 million based on current ETH prices.
Bit Digital aims to fully transition to Ethereum, planning to convert all its Bitcoin holdings into Ethereum in the future, aligning with the growing interest in corporate Ethereum reserves.
