Bit Digital Withdraws from Bitcoin Mining - Focuses Solely on Ethereum Staking Strategy | CoinDesk JAPAN

• Bit Digital has shifted its focus from Bitcoin Mining to Ethereum Staking and treasury operations.
• The company plans to sell its Bitcoin mining assets and reinvest the proceeds into Ethereum.
• In addition, we plan to sell shares to raise additional funds for purchasing Ethereum, and our subsidiary White Fiber is preparing for listing.

The company, based in New York, is completely withdrawing from its Bitcoin (BTC) mining business and reallocating its assets and capital to an expanding Ethereum strategy.

The company started holding Ethereum and building Ethereum staking infrastructure in 2022. As of March 31, the company holds 24,434.2 ETH valued at $44.6 million (approximately 6.5 billion yen, based on an exchange rate of 145 yen to 1 dollar) and 417.6 BTC valued at $34.5 million (approximately 5 billion yen). The remaining Bitcoin is expected to be gradually converted into Ethereum.

As funding for this transition, Bit Digital has initiated the process of selling or gradually downsizing its Bitcoin Mining business. The net proceeds from the sale will be reinvested in Ethereum. The specific timing for the sale or conversion of assets is not indicated.

Considering that Bitcoin has shown an astonishing rise, especially compared to Ethereum, this announcement represents a significant turning point for the company, which was once specialized in Bitcoin Mining. The ETH/BTC ratio has fallen by 75% since December 2021.

However, considering that the mining industry has been in a tough situation since last year's halving when miner rewards were cut in half, this move is not particularly surprising. Despite the rise in Bitcoin prices, profit margins are being squeezed.

The company also announced that it would sell shares to raise additional funds for purchasing Ethereum. Furthermore, its high-performance computing (HPC) subsidiary WhiteFiber announced that it has submitted a draft registration statement for an IPO to the U.S. Securities and Exchange Commission (SEC).

Bit Digital's stock price has dropped by 3.41% in after-hours trading.

| Translation & Editing: Rina Hayashi ｜Image: Shutterstock
｜Original: Bit Digital Exits BTC Mining to Focus Solely on ETH Staking Strategy

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