Bit Digital has announced plans to wind down its Bitcoin mining operations and transition to Ethereum. This decision has already affected the company's stock.
Announcement of Strategic Shift
Bit Digital announced that it will gradually convert its entire Bitcoin holdings into Ethereum. The company aims to become a 'pure play Ethereum' and has started purchasing ETH for its treasury. As of March 31, it held 24,434.2 ETH and 417.6 BTC.
Investor Reaction
Investors responded negatively to Bit Digital's pivot away from Bitcoin, leading to a 3.69% drop in the stock price to $2.35 at the close of trading. The stock further fell 3.83% in after-hours trading.
Increasing Interest in Ethereum Among Companies
Many companies are actively increasing their Ethereum holdings. For instance, SharpLink Gaming purchased $463 million worth of Ethereum, becoming the largest publicly traded ETH holder globally. Bit Digital ranks third among public companies in ETH reserves.
Bit Digital's shift towards Ethereum reflects a growing interest in the asset among public companies, despite the stock's volatility triggered by the changes.
