BIT Digital (BTBT), a publicly available digital asset company, has announced it will move to Bitcoin (BTC) mining operations and Ethereum (ETH) staking and financial management companies.
The decision marks the end of the era of companies with Bitcoin mining operations throughout the US, Canada and Iceland. This change reflects a growing perception of Ethereum’s economic benefits.
Bit-digital steps away from Bitcoin shift the overall focus to Ethereum
Bit Digital’s strategic pivots include selling BTC holdings and relocating revenues to Ethereum, according to a press release. The company has been gradually increasing its Ethereum holdings since 2022 and operating its staking infrastructure.
“As of March 31, 2025, the company has 24,434.2 ETH and 417.6 BTC, worth approximately $44.6 million and $34.5 million, respectively.
As part of the transition, the company has begun evaluating strategic options for its Bitcoin mining operations. This could lead to sales or shutdowns. Additionally, BIT Digital will invest the funds for this process in Ethereum.
That’s not all. In another press release, the company announced a public offering of common stock. BitDigital plans to use the funds to acquire Ethereum.
Nevertheless, the ultimate conditions and scale of the offering are still uncertain. This decision comes amid rising Bitcoin mining costs and record-breaking hashrate rise.
“Bitcoin mining is limited by energy intensive, hardware dependency, and increasingly margins. In contrast, Ethereum staking offers a cleaner economy: harvest without expensive energy costs and depreciate assets rapidly.
Recently, Beincrypto reported that mining costs for one Bitcoin rose to $64,000 in the first quarter of 2025, up 23% from $52,000 in the fourth quarter of 2024. Additionally, production costs are projected to exceed $70,000 this quarter.
There is also an intensifying competition, as evidenced by the increasing difficulty of Bitcoin mining. It reached 126.98 trillion, and the average hash rate over the course of 14 days was fueled to 913.54 EH/s. Nonetheless, trading fees remained low, accounting for just 1.3% of block rewards in May, falling below 1% in June.
Allen explained that Bitcoin mining faces lower returns due to high costs and constant infrastructure investments. Miners often need to sell Bitcoin to cover these costs, reducing exposure and adding volatility to their holdings.
Meanwhile, Bitcoin’s Treasury offers exposure to BTC, but with little revenue. According to him, Ethereum-centric strategies present a hybrid approach.
Provides asset exposure and repeat yields without the high costs of mining equipment and depreciation.
“This could be just the beginning. As the economic realities of the demonstration become more widely understood, companies from more crypto-borne origins, especially miners, will begin to rethink their strategies,” Allen added.
Meanwhile, BIT Digital’s movements did not have a positive impact on the stock price. Google Finance data showed that BTBT fell 3.69% due to market closures.
The share price fell another 3.83% in after-hours trading. Nevertheless, the decline is not new. BTBT has fallen 29.4% over the past year, falling into a long-term downward trend.
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