Bit Digital Inc. (BTBT), a digital asset firm with a market capitalization of $488 million, made an announcement revealing plans to transition into an Ethereum staking and treasury company. By moving focus and winding up, the Bitcoin mining company is solely going to focus on Ethereum Staking and Treasury management.
In a statement released Wednesday, the company said it has launched a strategic alternatives process for its Bitcoin mining operations, which will likely result in a sale or full wind-down of those activities. The firm also confirmed that proceeds from any Bitcoin asset sales will be converting toward expanding its Ethereum (ETH) staking initiatives.
The company stated that they ”intend to convert its BTC holdings into ETH over time.”
The firm started accumulating ETH and building the necessary infrastructure for staking services back in 2022, following Ethereum’s transition to proof-of-stake consensus mechanism after the Merge in September of the year. This shift will allow holders to earn rewards, typically yielding between 4% and 6.5% annually—by staking ETH to help secure the network.
Bit Digital disclosed ownership of 417.6 BTC, worth about $34.5 million, and 24,434.2 ETH, worth about $44.6 million, as of March 31. Although no specific timeframe for the changeover has been given, the company said it intends to gradually convert all of its Bitcoin assets into Ether.
Following the news, Bit Digital’s stock dropped by about 4%, indicating investor apprehension about the company’s exit from Bitcoin, the biggest cryptocurrency by market capitalization. However, with a market cap of almost $299 billion, Ethereum is still the second-largest.
Also Read: Fidelity Adds $166M in Bitcoin, Ethereum to Treasury Assets
