Bit Digital shares surged 29% on Monday after the cryptocurrency mining company completed its transition to an Ethereum treasury strategy, accumulating over 100,000 ether tokens to become one of the largest corporate holders of the digital asset. The company raised $172 million through a public offering and sold its entire 280 Bitcoin holdings to fund the Ethereum purchases.
The move positions Bit Digital among a growing number of public companies adopting cryptocurrency treasury strategies, following the path carved by MicroStrategy's Bitcoin accumulation and more recently, Tom Lee's launch of BitMine as an Ethereum-focused treasury play.
Bit Digital now holds approximately 100,603 ETH, worth about $189 million, making it the second-largest publicly traded Ethereum holder behind Coinbase Global, according to CoinGecko data1. The company's holdings have grown from 24,434 ETH as of March 3123.
"We believe Ethereum has the ability to rewrite the entire financial system," said Sam Tabar, Bit Digital's chief executive, in a statement3. "Ethereum's programmable nature, growing adoption, and staking yield model represent the future of digital assets."
The company used proceeds from selling approximately 280 Bitcoin, worth about $30.4 million at current prices, along with the $172 million stock offering to boost its ether position4.
The treasury shift follows Fundstrat co-founder Tom Lee's high-profile move into Ethereum treasury companies. Lee was appointed chairman of BitMine Immersion Technologies last week after the company announced a $250 million private placement to purchase Ethereum12.
Lee, who has projected a $10,000 price target for Ethereum, told CNBC that stablecoins are "the 'ChatGPT' of crypto because of its viral adoption," noting that Ethereum serves as the backbone for stablecoin transactions2. He cited the potential for stablecoins to grow from the current $250 billion market to $2 trillion, as suggested by Treasury Secretary Scott Bessent1.
Bit Digital's stock, trading under symbol BTBT, has seen volatile movements, with shares climbing from around $2 shortly after the company announced its Ethereum focus in late June1. The company's market capitalization has returned above $1 billion following Monday's surge2.
"We are starting with exposure to over 100,000 ETH for now but we intend to aggressively add more so we become the preeminent ETH holding company in the world," Tabar said3.
