Bit Digital Shifts Focus to Ethereum Staking, Exits Bitcoin Mining

Bit Digital (NASDAQ: BTBT), a New York-based crypto firm, is officially exiting the bitcoin mining business to become a dedicated Ethereum (ETH) staking and treasury operation. The company announced the strategic pivot on Wednesday, signaling a major transformation in its core business model.

Originally rooted in BTC mining, Bit Digital began developing its Ethereum staking infrastructure in 2022. As of March 31, the company held 24,434 ETH valued at $44.6 million, alongside 417 BTC worth $34.5 million. Bit Digital now plans to gradually convert all remaining bitcoin holdings into ether.

To finance this transition, the company has initiated the sale and wind-down of its bitcoin mining assets. Proceeds will be reinvested into Ethereum, reflecting confidence in ETH staking’s long-term viability despite Bitcoin’s recent outperformance. Notably, the ETH/BTC ratio has fallen roughly 75% since December 2021, highlighting the uphill battle ETH faces in valuation terms.

The decision comes as bitcoin mining profitability faces pressure following the 2024 halving event, which slashed miner rewards in half. Even with BTC’s rally past $107,000, many miners are struggling with reduced margins.

Additionally, Bit Digital is preparing to issue new shares to fund further ETH purchases. Its high-performance computing (HPC) unit, WhiteFiber, has also submitted a draft registration statement to the U.S. Securities and Exchange Commission (SEC) for a potential IPO, signaling an expansion into Web3 infrastructure and AI compute services.

BTBT shares fell 3.41% in after-hours trading following the announcement. While the move marks a bold bet on Ethereum’s future, it reflects broader trends as crypto firms shift toward staking and yield-generation models in response to changing market dynamics.