This week, the shares of Bitcoin mining firm Bit Digital fell sharply by 19%, closing at $1.99. This decline follows announcements regarding a public offering and a strategic pivot to Ethereum.
Bit Digital Stock Decline
Bit Digital shares dropped by 15% in just 24 hours as part of an overall five-day decline of nearly 19%. This occurred after the company announced a public offering aiming to raise $150 million and pivot to Ethereum staking. At the lowest point, shares reached $1.86 but slightly recovered in after-hours trading.
Shift to Ethereum
Bit Digital announced its intention to transition from Bitcoin mining to a "pure-play" Ethereum staking company. This week, it was disclosed that its shares would be sold at $2 each to increase its Ethereum reserves. As of March 31, the company had already accumulated 24,434 ETH and 417 BTC.
Investor Reaction
The market reacted negatively to the company’s shift to Ethereum, which significantly impacted stock prices. On June 25, following the announcement, shares dropped by nearly 4%. Over the week, the price fell from $2.40 to $1.86. Despite this, Bit Digital plans to continue its transformation and even liquidate its BTC holdings in favor of ETH.
The pivot of Bit Digital to Ethereum and the public offering have been catalysts for the significant drop in stock prices. Investors are watching the developments closely, though the company's current strategy indicates a strong commitment to continue its path toward Ethereum.
