Bit Digital Is Going All in on Ethereum. Should You Buy BTBT Stock Here?
While corporate crypto treasuries have largely stayed loyal to Bitcoin — 21 entities added BTC to their balance sheets in the past month alone — Bit Digital is breaking from the pack. As giants like Strategy (MSTR) stack Bitcoin by the hundreds of thousands, Bit Digital is betting that Ethereum's long-term utility will outpace BTC's upside. That call may be early, but not unfounded. Ethereum ETFs in the U.S. have now posted weeks of inflows, signaling a shift in institutional appetite.
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Bit Digital sold 280 BTC and used the proceeds, along with $172 million in fresh capital, to accumulate 100,603 ETH. That's a more than 300% rise from its balance of 24,434 ETH at the end of the first quarter of 2025. With this bold move, the firm has completed its transformation into a major Ethereum-centric treasury player.
While the news has sent shares soaring, is this a buy-now moment? Or should investors watch from the sidelines?
Bit Digital is rewriting its script from a pure-play Bitcoin miner to a digital powerhouse riding the AI and Ethereum waves. Headquartered in New York, the company now blends crypto mining, high-performance computing (HPC), and cloud infrastructure, backed by a debt-free balance sheet and stellar revenue growth.
Strategic moves, such as acquiring Enovum and partnering with Boosteroid, have fueled the firm's AI momentum. Meanwhile, its Ethereum staking play signals a sharp pivot toward smarter, yield-driven models. Bit Digital's market capitalization currently stands at $725 million.
Shares had been bleeding red for weeks, dragged down by macro jitters and declining Bitcoin production. But the narrative flipped fast. After revealing a 100,000-plus ETH stake, the market lit up. Shares of BTBT stock surged nearly 20% in a single day, pushing their five-day gains to over 70%. The volume exploded to 173 million on July 7 while the RSI rocketed past 70, signaling bullish momentum. BTBT stock just reminded investors everyone how fast sentiment shifts in crypto-fueled stocks.
Bit Digital's Q1 2025 earnings dropped on May 15, and the headlines were not dazzling. Total revenue slipped 17% year-over-year (YOY) to $25.1 million, missing estimates. Losses came in at $0.32 per share, wider than expected.
BTC mining, once the main revenue engine, took a backseat after the April 2024 halving, slashing block rewards and driving a brutal 80% drop in BTC earned. Mining revenue collapsed 64% YOY to just $7.8 million, with digital asset mining revenue making up only 31% of total revenue compared to 72% a year ago.
Cloud services revenue surged 84% annually to $14.8 million, now the firm's biggest earner. Colocation services chipped in $1.6 million, and ETH staking revenue climbed 72% to $600,000. The firm earned 211 ETH through native staking, keeping some skin in the game even as BTC production shrank.
Despite the shifting tides, Bit Digital's balance sheet remains strong — $61.3 million in cash and $140 million in liquidity, with zero debt. That gives it ammo to chase high-return bets. With BTC and ETH reserves of 417.6 and 24,434.2, respectively, the treasury was well stocked at the end of the quarter. And it's now even more resilient with the recent ETH acquisition.
Looking ahead, management sees cloud margins expanding as scale improves and costs spread wider. With contracted deployments already lined up, they're guiding for a revenue rebound in Q2 and more momentum through Q3.
Meanwhile, analysts monitoring the company anticipate Bit Digital trimming losses by 82% YOY to -$0.05 per share in fiscal 2025, then flipping green in fiscal 2026 with a $0.04 EPS comeback.
Ethereum isn't just digital gold. It's fast becoming the operating system of global finance. With smart contracts, staking yields, and rising tokenization, it offers what Bitcoin can't: real-world utility. That's why Bit Digital went all in on ETH. CEO Sam Tabar believes ETH is a force that could 'rewrite the entire financial system' as institutions explore it to host equities, bonds, and stablecoins.
Bit Digital's Ethereum pivot isn't random — it is a response to Bitcoin's declining miner economics and Ethereum's more flexible staking rewards. Staking allows Bit Digital to earn yield by helping secure the network, all while holding a blockchain asset tied to tokenized securities, stablecoins, and institutional innovation. Now a dedicated Ethereum treasury entity, the company joins rivals like SharpLink and BitMine in redefining crypto treasuries.
Still, ETH volatility lingers, with a U.S. wallet transfer recently spooking markets. But if Ethereum anchors future finance, Bit Digital's timing may prove less risky and more visionary than it first seemed.
Backed by a diversified growth pipeline, Bit Digital is primed to generate strong returns in the years ahead. BTBT stock has an unanimous 'Strong Buy' rating from all five analysts covering the stock.
The average analyst price target for the stock is $5.90, indicating potential upside of 57%. The Street-high target price of $7 suggests that this penny stock could rally as much as 87%.
On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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