Bit Digital has announced plans to exit Bitcoin mining and shift focus to Ethereum staking. The changes have already impacted the market and the company’s shares.
Strategy Change Plan
Bit Digital announced its intention to gradually sell its Bitcoin mining infrastructure and convert all its BTC holdings into Ether (ETH). The company provided no clear timeline for completing this transition.
Market Reaction and Financial Performance
Following the announcement, Bit Digital's shares dropped by 3.69%, closing at $2.35. In after-hours trading, shares slipped another 3.83% to $2.26.
Current Reserves and Company's Future
As of March 31, Bit Digital held 24,434.2 ETH and 417.6 BTC. A full conversion of BTC holdings to ETH could increase its reserves by more than 18,000 ETH. The company is also planning to raise capital through stock sales to bolster its ETH holdings.
Bit Digital's shift to Ethereum reflects a broader trend among public companies focused on cryptocurrency. Recently, SharpLink Gaming became the largest publicly traded holder of ETH.
