Bit Digital Exits BTC Mining to Focus Solely on ETH Staking Strategy

Bit Digital (BTBT) is altering course to change into a devoted ether

staking and treasury operation, the corporate stated Wednesday.

The New York-based agency will exit the bitcoin

mining enterprise completely, repurposing its belongings and capital into its rising ETH technique.

The firm started constructing its ether place and Ethereum staking infrastructure in 2022. As of March 31, Bit Digital held 24,434.2 ETH, valued at $44.6 million, and 417.6 BTC value $34.5 million. It plans to convert the remaining bitcoin into ether over time.

To fund the transition, Bit Digital has began a course of to promote or wind down its bitcoin mining operations. Net proceeds from the divestiture shall be reinvested in ether. No particular timeline was given for the sale or conversion of belongings.

The announcement marks a major pivot for an organization as soon as rooted in bitcoin mining, particularly contemplating the unbelievable run BTC has been on in contrast to ETH. The ETH/BTC ratio is down 75% since December 2021.

However, the transfer is not a giant shock given how robust the mining business has change into since final yr’s halving minimize the BTC rewards for miners to half, squeezing revenue margins, regardless of rally in bitcoin costs.

The agency has additionally introduced that it is going to be promoting shares to fund the acquisition of extra ether, and that its high-performance computing (HPC) subsidiary, WhiteFiber, has submitted a draft registration letter with the Securities and Exchange Commission with regards to going public.

BTBT is down 3.41% in after hours buying and selling.