Bit Digital sold 280 Bitcoin (BTC) from the Ministry of Finance, used revenue to purchase Ethereum (ETH), marking the completion of the three-month transition into an Ethereum-only Treasury strategy.
According to Announcement on July 7ththe New York-based miner also closed down its downselling shares, which raised gross revenues of around $172 million, as noted in the company’s announcement.
Management has rolled out net cash to acquire additional ETH and lifted its balance sheet from 24,434 ETH on March 31 to around 100,603 ETH today.
CEO Sam Tabar said Ethereum’s programmable design, increased adoption and native staking yields will “rewrite the entire financial system” to present a paper that is superior and valuable compared to Idol Bitcoin.
Tabar added that Bit Digital is planning to “actively add” ETH and position itself as a focused Ethereum financial vehicle in the open market.
Before equity offerings and coin sales, BIT Digital maintained a hybrid Treasury that holds both Bitcoin and Ethereum, operating hashrate leases and validator nodes.
The ETH purchase completely removes BTC exposure and has an ether position worth around $261 million at a spot rate of Monday at $2,600.
Management will bet most of the new inventory through existing validator infrastructure and convert its holdings into a chain yield stream that can support operating expenses and future purchases.
Changes in corporate demand
Eric Conner, developer and advocate for Ethereum I’ve noticed the pivot Social media tracked the timeline from March 31st to July 7th announcement, calculating a four-fold increase in the company’s ETH stack within a quarter.
He argued that earning yields would turn the corporate Treasury into an engine of self-funding, contrasting with BitDigital’s move and the strategy’s decision to maintain only Bitcoin.
Connor added that public companies’ demand for ether appears to outweigh the recent Treasury moves by fund manager Tomley and Consensey founder Josephulvin, which is the network’s monthly issuance of about 112,000 ETH.
BIT Digital’s strategy is consistent with wider changes among miners who have previously worked to face margin compression following half of Bitcoin’s latest block rewards.
By pivoting into the economics of proof, companies can generate predictable reward rates of around 4% without the energy costs associated with hashrate procurement.