Latest news with #BitDigital
Yahoo
a day ago
- Business
- Yahoo
Another BTC Mining Firm Moves Into Ethereum Reserve, Hailing ETH as ‘Digital Gold'
Bitcoin mining firm, BTC Digital (BTCT), has moved $1 million of company cash into ether (ETH), which it called its new 'digital gold.' BTCT Moved $1M Into Ethereum Reserve, chief executive officer Siguang Peng said in a press release, adding that Ethereum has 'emerged as the foundation of on-chain USD settlement and value transfer.' "By securing an initial $1 million ETH reserve today—and with plans to scale that position—we are proactively positioning ourselves for decentralized finance, stablecoin issuance, and asset tokenization,' Peng said. BTCT plans to grow the reserve as upgrades lift capacity and U.S. rules solidify. BTC Digital was previously a bitcoin mining company. The firm recently said that "its 20 MW large–scale cryptocurrency mining project in Georgia has reached a significant milestone." The company doesn't state if it still plans to mine bitcoin, but said it is "building on its origins in large–scale crypto mining, BTCT is undergoing a strategic evolution from "hash–rate provider" to "on–chain financial infrastructure participant," in the press release. BTC Digital is the second publicly traded bitcoin miner turning to an ether treasury. Earlier this month Bit Digital (BTBT) shifted its entire treasury from BTC to ETH as it moved to a staking strategy. The move saw its stock jump up to 30%. It has since corrected in a nearly 20% drop. Meanwhile, BTCT's stock closed Friday's trading session 13% higher. Publicly-known ether treasuries, which include the treasuries of decentralized autonomous organizations (DAOs), Layer-2 networks, and publicly-traded firms, currently hold more than 1.34 million ETH, according to a public tracker.
Yahoo
a day ago
- Business
- Yahoo
Another BTC Mining Firm Moves Into Ethereum Reserve, Hailing ETH as ‘Digital Gold'
Bitcoin mining firm, BTC Digital (BTCT), has moved $1 million of company cash into ether (ETH), which it called its new 'digital gold.' BTCT Moved $1M Into Ethereum Reserve, chief executive officer Siguang Peng said in a press release, adding that Ethereum has 'emerged as the foundation of on-chain USD settlement and value transfer.' "By securing an initial $1 million ETH reserve today—and with plans to scale that position—we are proactively positioning ourselves for decentralized finance, stablecoin issuance, and asset tokenization,' Peng said. BTCT plans to grow the reserve as upgrades lift capacity and U.S. rules solidify. BTC Digital was previously a bitcoin mining company. The firm recently said that "its 20 MW large–scale cryptocurrency mining project in Georgia has reached a significant milestone." The company doesn't state if it still plans to mine bitcoin, but said it is "building on its origins in large–scale crypto mining, BTCT is undergoing a strategic evolution from "hash–rate provider" to "on–chain financial infrastructure participant," in the press release. BTC Digital is the second publicly traded bitcoin miner turning to an ether treasury. Earlier this month Bit Digital (BTBT) shifted its entire treasury from BTC to ETH as it moved to a staking strategy. The move saw its stock jump up to 30%. It has since corrected in a nearly 20% drop. Meanwhile, BTCT's stock closed Friday's trading session 13% higher. Publicly-known ether treasuries, which include the treasuries of decentralized autonomous organizations (DAOs), Layer-2 networks, and publicly-traded firms, currently hold more than 1.34 million ETH, according to a public tracker.
Coin Geek
3 days ago
- Business
- Coin Geek
Bit Digital shifts from BTC mining to ETH staking
Getting your Trinity Audio player ready... In a bold move that signals a significant shift in the block reward mining landscape, Bit Digital, Inc. (NASDAQ: BTBT), a New York-based, Nasdaq-listed crypto firm with a market capitalization of $489 million, announced in May that it is exiting BTC mining entirely to focus on Ethereum (ETH) staking and treasury operations. This strategic pivot, driven by rising BTC mining costs, diminishing returns, and the allure of ETH's proof-of-stake (PoS) model, reflects broader industry trends toward sustainability and capital efficiency. The announcement, however, triggered a 4-8% drop in Bit Digital's stock price, highlighting investor uncertainty about the transition. As the company repositions itself, it aims to capitalize on ETH's growing institutional appeal and long-term yield potential, potentially reshaping its investor base and market position. Bit Digital's decision comes at a challenging time for BTC mining. The April 2024 BTC halving slashed block rewards from 6.25 to 3.125 BTC, significantly impacting miners' revenue. Compounding this, BTC mining difficulty reached an all-time high of 126.98 trillion in May 2025, driven by a 14-day average hashrate of 913.54 EH/s. Transaction fees, a critical revenue stream, dropped to just 1.3% of block rewards in May, falling below 1% in June. Bit Digital's Q1 2025 financials reflect this squeeze: BTC mining revenue plummeted 64% year-on-year to $7.8 million, with only 83.3 BTC mined, an 80% decline from the previous year. High energy costs and continuous hardware upgrades further eroded margins, making BTC mining increasingly unsustainable for the firm. 'Our first quarter results were affected by mark-to-market losses on digital assets and lower bitcoin mining revenue, both of which reflect industry-wide headwinds and the strategic rebalancing of our business. We continued to make meaningful progress in scaling our infrastructure platform and diversifying our revenue streams,' the company stated. In contrast, ETH's PoS mechanism, implemented after the 2022 Merge, offers a compelling alternative. Staking allows firms to lock up ETH to secure the network, earning annual yields of 4-6.5% with significantly lower energy consumption than BTC's energy-intensive proof-of-work (PoW) model. Bit Digital began building its ETH staking infrastructure in 2022, and by March 31, 2025, held 24,434.2 ETH valued at $44.6 million and 417.6 BTC worth $34.5 million. The company plans to gradually convert its BTC holdings into ETH, with proceeds from the sale or wind-down of its BTC mining operations—spanning facilities in the United States, Canada, and Iceland—reinvested into ETH staking. Additionally, Bit Digital announced a public offering of ordinary shares, led by B. Riley Securities, to fund further ETH purchases, though the offering's size and terms remain undisclosed. The pivot aligns with a broader shift in institutional capital toward ETH, driven by its staking yields and the liquidity provided by liquid staking derivatives (LSDs). The Ethereum Shapella upgrade in April 2023 enabled ETH withdrawals, boosting demand for LSDs like stETH, which allow staked assets to be traded or used as collateral in decentralized finance (DeFi). This mechanism enhances capital efficiency and lowers staking barriers, making ETH attractive to yield-focused investors. Bit Digital's move positions it as the third-largest publicly traded ETH holder, behind SharpLink Gaming (NASDAQ: SBET) and Coinbase (NASDAQ: COIN), with plans to increase its ETH reserves by over 18,000 ETH through BTC conversions. However, the transition is not without risks. Bit Digital's stock fell 3.7% on June 25, with an additional 4.3% drop in after-hours trading, reflecting investor concerns about short-term volatility. Legacy BTC mining investors may exit, and the firm's rapid cash burn, despite 52.44% revenue growth over the past year, raises questions about financial sustainability. The ETH/BTC ratio, down 75% since December 2021, suggests BTC's recent outperformance, adding uncertainty to Bit Digital's bet on ETH. Yet, growing interest in ETH exchange-traded funds (ETFs) and staking's stable returns could attract new institutional investors, particularly those prioritizing Web3-based income strategies. Bit Digital's pivot also coincides with its expansion into high-performance computing (HPC). Its subsidiary, WhiteFiber Inc., secured a $43.9 million financing facility from the Royal Bank of Canada to develop a Tier-3 artificial intelligence (AI) data center in Quebec, set for completion by Q4 2025. Additionally, WhiteFiber acquired a North Carolina property for a 24 MW AI data center campus and is preparing for a potential initial public offering (IPO). These moves diversify Bit Digital's portfolio, leveraging its computational expertise beyond crypto. 'This financing is a breakthrough for WhiteFiber and our sector,' said Bit Digital CEO Sam Tabar. 'No other company operating at the intersection of HPC Cloud and data centers has secured financing of this nature, to our knowledge. We believe that this is a strong endorsement of our business model, the quality of our assets, balance sheet, and ability to execute.' As BTC mining faces mounting pressures, Bit Digital's shift to ETH staking reflects a strategic response to industry challenges and opportunities. While the transition carries risks, it positions the firm to capitalize on ETH's growing role in the digital economy, potentially setting a precedent for other miners to follow. Watch: Unpacking Bitcoin sustainability at the London Blockchain Conference title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Yahoo
4 days ago
- Business
- Yahoo
Bit Digital CEO Shifts Entire Crypto Treasury to Ether
Lots of companies are copying Strategy's move to build a bitcoin treasury, Bit Digital is instead building a treasury of Ether. The crypto mining company sold its Bitcoin tokens to buy Ether. The company's shares are rallying around 90% in the past six sessions. Bit Digital CEO Samir Tabor joins Sonali Basak and Tim Stenovec on "Bloomberg Crypto".
Yahoo
4 days ago
- Business
- Yahoo
Bit Digital Is Going All in on Ethereum. Should You Buy BTBT Stock Here?
Crypto mining and staking firm Bit Digital (BTBT) made its name in the Bitcoin (BTCUSD) mining trenches — burning electricity, chasing block rewards, and scaling data centers to stay competitive in a cut-throat game. But as margins shrank and mining economics turned sour, the company pulled the plug on its rigs and rewired its future around Ethereum (ETHUSD), becoming one of the largest ETH holders among public companies. 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. Nvidia Scores Another Sovereign AI Win. How Should You Play NVDA Stock Here? Covered Call ETFs Are Popular, But My Favorite Options Trade Is Even Better CoreWeave Seals the Deal to Buy Core Scientific. Should You Buy CRWV Stock Here? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. 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
