Bit Digital has announced its exit from Bitcoin mining to fully focus on Ethereum staking, backed by $150 million raised through a public share offering.
Funding and Strategy
Bit Digital has raised $150 million through a public offering of 75 million shares priced at $2 each. Underwriters have also been given a standard option to purchase an additional 11.25 million shares within 30 days. The company plans to use most proceeds to acquire Ethereum (ETH), marking one of the most significant ETH commitments by a publicly traded firm.
Challenges in Bitcoin Mining Sector
The company's shift to focus on Ethereum staking comes amid growing economic pressures in the Bitcoin mining sector. Bit Digital has decided to concentrate solely on Ethereum staking and treasury management. Previously, the company relied on external vendors to oversee its mining fleet, which has proven precarious in an increasingly competitive market.
Company's Future
Bit Digital is also expanding its presence in high-performance computing alongside its crypto strategy. Its wholly-owned subsidiary, WhiteFiber Inc., which specializes in AI computing services and Ethereum-aligned infrastructure, has confidentially filed for an initial public offering (IPO). The timing and structure of the IPO have not been disclosed.
Bit Digital's transition from Bitcoin mining to Ethereum staking reflects the current challenges within the cryptocurrency sectors. These changes may have significant implications for the company's future strategies.
