Nasdaq-listed Bit Digital is the latest company to adopt the Ethereum standard, offloading all its Bitcoin holdings for the largest altcoin. The move has sent Bit Digital’s stock rallying by nearly 20% in a day as the company eyes becoming the largest Ethereum Treasury player
Bit Digital Abandons Bitcoin For Ethereum Treasury
According to a press release, Bit Digital has confirmed its transition to adopt an Ethereum treasury strategy, selling all its Bitcoin holdings. The Nasdaq-listed company offloaded 280 BTC, bringing an end to its streak of Bitcoin sales, and used the proceeds to purchase ETH.
Furthermore, Bit Digital has raised $172 million from an underwritten public offering, with the report confirming a complete allocation toward Ethereum. The aggressive accumulation strategy has seen Bit Digital’s ETH holdings climb from a mere 24,434 ETH to 100,603 ETH in one giant leap.
Bit Digital disclosed that ditching Bitcoin for Ethereum was a fairly easy choice, pointing to a raft of capabilities. Right off the bat, Bit Digital says Ethereum’s programmability and staking yield model will see it “rewrite the entire financial system.”
“Bit Digital is aligning itself with Ethereum’s long-term potential and positioning itself as a focused Ethereum treasury platform in the public markets,” read the press release.
With over 100,000 ETH on its balance sheets, Bit Digital has plans to continue stacking Ethereum to become the largest corporate holder of the asset. The company faces stiff competition from SharpLink Gaming in the race to become the largest publicly traded Ethereum holder. Bit Digital’s stock price has soared by 19.56% following the announcement to trade at $3.52, gaining over 60% in a week.
Ethereum Treasuries Match The Pace Of Bitcoin Treasuries
While Bitcoin treasury companies are hogging the spotlight, corporate adoption of Ethereum has spiked in recent weeks. Led by SharpLink Gaming, dozens of companies are throwing their weight behind Ethereum, citing an advanced role in global financial markets.
Bitcoin miner BitMine is joining Bit Digital to turn its gaze to Ethereum, raising $250 million to buy ETH and tapping Tom Lee to become board chairman. Furthermore, Ethereum co-founder Joseph Lubin says the new trend of ETH companies will accelerate DeFi adoption on Wall Street.
Despite the streak of adoption, ETH price is down by nearly 2% over the last day, driven by sell-off speculation around the US government moving ETH to Coinbase.
On the flip side, Bitcoin treasury operations are at an all-time high with entities scooping up 8,400 BTC last week. However, Michael Saylor’s Strategy paused its 12-week Bitcoin buying streak as corporations explore altcoin treasury operations.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
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