Bit Digital (BTBT) changes courses to become a dedicated ether
New York-based company ends Bitcoin
The company began building an ether position and Ethereum staking infrastructure in 2022. As of March 31, BIT Digital holds a worthy 24,434.2 ETH at $44.6 million and 417.6 BTC worth $34.5 million. The remaining bitcoin will be converted to ether over time.
To fund the transition, BIT Digital has launched a process of selling or discontinuing its Bitcoin mining business. Net income from the sale is reinvested in the ether. No specific timeline was given regarding the sale or conversion of assets.
This announcement is a key pivot for companies rooted in Bitcoin mining, especially considering the incredible execution compared to ETH. The ETH/BTC ratio has declined by 75% since December 2021.
But this move is no big surprise given how tough the mining half of last year has become since narrowing down the BTC payouts for miners in half and narrowing down profit margins, despite the Bitcoin price rally.
The company also announced that it would sell shares to fund the purchase of more ether and that Whitefiber, a subsidiary of its High Performance Computing (HPC), has submitted a draft registration with the Securities and Exchange Commission regarding its publication.
BTBT has fallen 3.41% after trading.