Bit Digital has announced a major shift in its treasury strategy from Bitcoin to Ethereum. This decision is based on the company's conviction that Ethereum could 'rewrite the entire financial system'.
Change in Treasury Strategy
Bit Digital used $172 million from a recent public offering, along with funds from the sale of 280 Bitcoin to acquire Ether. As of the end of the first quarter, Bit Digital held 24,434 ETH, a position that has grown to 100,603 ETH. This move makes the company the second largest corporate holder of ETH, with only Coinbase Global holding a larger stake.
Market Reaction
Bit Digital's stock, which trades under the symbol BTBT, surged over 29% following the announcement of the strategy shift, bringing the company's market capitalization back above $1 billion.
Overall State of Corporate Crypto Treasury
This year, corporate crypto treasury strategies have gained traction, though much of the activity has centered on accumulating and holding Bitcoin. However, institutional interest in Ethereum remains relatively muted despite recent inflows into Ether exchange-traded funds.
The shift in company strategy at Bit Digital highlights a growing interest in Ethereum and the potential for changing trends in corporate crypto treasury.
