Bit Digital Raises $150 Million for Ethereum Staking Amid Stock Decline

Bit Digital announced a strategic shift from Bitcoin mining to Ethereum staking and plans to raise $150 million through a public offering.

The company has been accumulating ETH since 2022, holding 24,434.2 ETH and 417.6 BTC, valued at approximately $44.6 million and $34.5 million, respectively.
After converting its Bitcoin holdings into Ether, Bit Digital is projected to hold around 42,000 ETH, valued at approximately $103 million based on current prices.
The public offering will consist of 75 million ordinary shares priced at $2 each, with proceeds dedicated to purchasing Ether.
Demand for ETH staking has increased due to Ethereum's strong ecosystem and fundamentals, attracting both retail and institutional investors.
Investor sentiment declined following the announcement, with Bit Digital's stock dropping nearly 4% on Wednesday and falling 19% over the week.
The company has slipped from the 12th to the 13th largest Bitcoin mining firm by market capitalization, with a year-to-date decline of over 40% in stock price.
Other Bitcoin mining firms are also experiencing selling pressure due to rising operational costs.