Bit Digital Ditches BTC Mining For ETH

Key Takeaways

• Bit Digital is exiting the Bitcoin mining business to focus on Ethereum staking and treasury holdings.
• The company plans to liquidate BTC reserves and convert them into ETH.
• Proceeds from stock sales will fund additional ETH purchases, bolstering their staking strategy.
• BTBT shares dropped 3.69% during trading and another 3.83% after hours following the announcement.
• Bit Digital now ranks among the top three public firms holding Ethereum.

Why Bit Digital Is Leaving Bitcoin Mining Behind

The company announced its intention to gradually exit Bitcoin mining operations and either sell or wind down its infrastructure. In a statement, Bit Digital described its new direction as a “pure play Ethereum staking and treasury company.”

This strategic overhaul is not sudden; it follows moves the company began as early as 2022, including building Ethereum staking infrastructure and accumulating ETH.

Bitcoin To Ethereum Conversion Plan

As of March 31, 2025, Bit Digital reported holdings of:

• 24,434.2 ETH.
• 417.6 BTC. 

If all BTC were to be sold and converted at current exchange rates, the company’s Ethereum treasury would surpass 42,000 ETH, making it a heavyweight in the ETH-staking world.

Stock Market Reacts Negatively To Bitcoin Exit

Following the announcement, Bit Digital’s stock fell:

• 3.69% during market hours to $2.35.
• 3.83% after-hours, settling at $2.26. 

Bit Digital Fell Further During After Hours Trading

Source: Google Finance

This drop reflects investor concerns over the firm leaving the Bitcoin miner space, a historically lucrative market. Year-to-date, BTBT is down nearly 25%, and it has fallen 39% from its January high of $3.88.

Financial Health Check

In its most recent earnings report, Bit Digital showed:

• 18% decline in year-over-year revenue.
• A 240% drop in net profit margin. 

Despite the earnings slump, Bit Digital is investing in diversification, including the $53 million acquisition of a high-performance computing facility in North Carolina, likely intended to support both AI workloads and Ethereum staking operations.

Bit Digital Announced The Acquisition Via A Form 8-K Filed With The SEC

Source: U.S. SEC

Ethereum Staking: A Growing Trend Among Public Firms

Who Else Is Making the Move?

Bit Digital isn’t alone in the shift toward Ethereum. Several publicly traded companies are increasing their ETH exposure:

• SharpLink Gaming made headlines by purchasing $463 million worth of ETH on June 13th. It followed that up with another $30 million buy just days later. 
• Coinbase remains another major ETH holder through its various staking products. 

According to Strategic ETH Reserve, a tracker for institutional ETH holdings:

1. SharpLink Gaming holds the most ETH.
2. Coinbase comes in second.
3. Bit Digital ranks third among publicly traded companies.
   

Ethereum’s Growing Institutional Appeal

The shift away from being a traditional Bitcoin miner to a staking-focused model aligns with Ethereum’s transformation to a proof-of-stake (PoS) protocol. This newer consensus mechanism is viewed as:

• Less energy-intensive.
• More sustainable.
• Financially predictable compared to the hardware-heavy mining model.
  

Is This the End Of Bitcoin Mining For Public Firms?

While Bit Digital’s departure from Bitcoin mining is significant, it doesn’t necessarily signal the end of the Bitcoin miner era. Many companies still find value in BTC mining, especially those with access to cheap electricity or vertically integrated operations.

However, Ethereum’s staking appeal continues to rise, especially for companies that prioritize treasury growth, ESG goals, and reduced operational risk.

FAQ

Why is Bit Digital exiting Bitcoin mining?

Bit Digital is transitioning to focus on Ethereum staking, which offers more predictable returns and aligns with current crypto infrastructure trends.

How much Ethereum does Bit Digital hold?

As of Q1 2025, the company holds 24,434.2 ETH. If all BTC reserves were converted, that figure could rise to over 42,000 ETH.

What will Bit Digital do with the money from selling Bitcoin?

They plan to reinvest the proceeds, along with new funds from stock sales, into Ethereum purchases for staking purposes.