Bit Digital (NASDAQ: BTBT) shares fell sharply on Wednesday after the crypto mining firm announced a major strategic shift—phasing out its Bitcoin mining operations in favor of expanding its Ethereum holdings and staking activities.
The company said it will sell or wind down its Bitcoin mining infrastructure and gradually convert all of its Bitcoin (BTC) reserves into Ether (ETH). While Bit Digital did not set a timeline for the transition, it confirmed its intent to fully reposition itself as an “Ethereum staking and treasury company.”
The announcement triggered a negative reaction from investors, sending BTBT shares down 3.69% to $2.35 during regular trading. The decline continued in after-hours trading, falling another 3.83% to $2.26. The stock is now down nearly 25% in 2025 and has dropped 39% since peaking at $3.88 on January 6.
As of March 31, Bit Digital held 417.6 BTC and 24,434.2 ETH in its reserves. If the company were to liquidate its Bitcoin holdings today, it could potentially add more than 18,000 ETH to its balance sheet, increasing total ETH reserves to over 42,000.
In addition to the infrastructure shift, Bit Digital plans to sell new shares and use the proceeds to purchase more Ether, reinforcing its new focus on Ethereum.
Bit Digital began building its ETH treasury and staking infrastructure in 2022. The company’s latest move places it among the top institutional holders of ETH, behind only Coinbase and SharpLink Gaming. SharpLink recently became the largest public holder of ETH after acquiring $463 million worth of Ether earlier this month and adding another $30 million just days ago.
Meanwhile, Bit Digital continues to face financial challenges. The company reported an 18% drop in revenue and a 240% plunge in net profit margin for the first quarter of 2025.
Despite the pivot to Ethereum, Bit Digital is also investing in new technologies, having purchased a $53 million facility in Madison, North Carolina, in April to support its artificial intelligence and high-performance computing ventures.
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