Digital asset company Bit Digital has pivoted its corporate treasury strategy from Bitcoin to Ether, saying the shift reflects its conviction that Ethereum will “rewrite the entire financial system.”
Bit Digital used $172 million in proceeds from a recent public offering, along with funds from the sale of 280 Bitcoin (BTC), to acquire Ether (ETH), the company disclosed on Monday.
As of the end of the first quarter, Bit Digital held 24,434 ETH — a position that has since grown to 100,603 ETH. The company's stock, which trades under the symbol BTBT, surged more than 29% on the news, bringing its market capitalization back above $1 billion.
The shift makes Bit Digital the second-largest corporate holder of ETH, with only Coinbase Global holding a larger stake in the digital asset, according to CoinGecko data.
Coinpectra reported on Bit Digital’s public offering and Ether pivot on June 27, but the company has been accumulating and staking ETH since 2022.
Bit Digital CEO Sam Tabar said the company is “aligning itself with Ethereum’s long-term potential and positioning itself as a focused Ethereum treasury platform in the public markets,” with plans to become “the most preeminent ETH holding company in the world.”
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Crypto treasury strategies gain traction
Corporate crypto treasury strategies have gained momentum this year, though most activity has centered on accumulating and holding Bitcoin.
In the past month alone, at least 21 entities have added BTC to their balance sheets, according to industry data. The largest corporate holder, Strategy (MSTR), has amassed 597,323 BTC.
However, some analysts have raised concerns that the treasury strategy is becoming overplayed, particularly for companies that lack a strong underlying business or a clear plan for managing their BTC holdings.
Beyond Bitcoin, crypto treasury strategies are far less common. According to Bloomberg, one new company plans to raise $100 million to accumulate Binance’s BNB (BNB), a move that mirrors Strategy’s Bitcoin treasury model.
So far, institutional interest in Ethereum has remained relatively muted, judging by inflows into ETH exchange-traded funds since their approval last year. However, the tide may be starting to turn, with US Ether funds recording inflows for seven consecutive weeks.
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