rewrite this title Bit Digital converts entire 280 BTC reserve to $172M worth of Ethereum

Bit Digital sold 280 Bitcoin (BTC) from its treasury and used the proceeds to purchase Ethereum (ETH), marking the completion of a three-month transition to an Ethereum-only treasury strategy.

According to a July 7 announcement, the New York-based miner also closed an underwritten share sale that raised approximately $172 million in gross proceeds, as stated in the company’s announcement. 

Management deployed the net cash to acquire additional ETH, lifting the balance sheet from 24,434 ETH on March 31 to roughly 100,603 ETH today. 

CEO Sam Tabar said Ethereum’s programmable design, growing adoption, and native staking yield “rewrite the entire financial system” and present a superior store-of-value thesis compared with idle Bitcoin. 

Tabar added that Bit Digital plans to “aggressively add more” ETH and position itself as a focused Ethereum treasury vehicle in public markets.

Before the equity offering and coin sale, Bit Digital maintained a hybrid treasury that held both Bitcoin and Ethereum while operating hash-rate leases and validator nodes. 

The ETH purchases remove BTC exposure entirely, leaving the company with an Ether position worth approximately $261 million at Monday’s $2,600 spot rate. 

Management intends to stake most of the new inventory through its existing validator infrastructure, converting the holdings into an on-chain yield stream that can support operating expenses and future purchases.

Shift in corporate demand

Ethereum developer and advocate Eric Conner noted the pivot on social media, tracing the timeline from the March 31 filing to the July 7 announcement and calculated a fourfold increase in the firm’s ETH stack within one quarter. 

He argued that staking yield turns corporate treasuries into self-funding engines, contrasting Bit Digital’s move with Strategy’s decision to remain exclusively in Bitcoin. 

Conner added that public company demand for Ether appears to outpace the network’s monthly issuance of about 112,000 ETH, citing recent treasury moves by fund manager Tom Lee and Consensys founder Joseph Lubin at the SharpLink board.

Bit Digital’s strategy aligns with a broader shift among former proof-of-work miners who faced margin compression following Bitcoin’s most recent block reward halving. 

By pivoting to proof-of-stake economics, the firm can generate a predictable reward rate of approximately 4% without the energy costs associated with hash rate procurement.

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