Bit Digital Inc. Seeks Shareholder Approval for Ethereum-Focused Strategy

Bit Digital's Strategic Shift

Bit Digital Inc. (BTBT) is gearing up to present a proposal to its shareholders for a significant expansion of its authorized shares to 1 billion, a 285-fold increase. This move, scheduled to be voted on at a shareholder meeting on September 10, 2025, in New York, aims to facilitate the company's transition towards accumulating Ethereum (ETH). The proposal also includes a direct offering of 22 million ordinary shares priced at $3.06 each, with the goal of raising $67.3 million. This capital injection will support Bit Digital's shift from bitcoin mining to Ethereum staking and high-performance computing (HPC) services, aligning with the broader trend of institutions showing increased interest in the second-largest cryptocurrency [6].

The Role of WhiteFiber

A key player in Bit Digital's Ethereum-focused strategy is its subsidiary, WhiteFiber, which specializes in Ethereum staking and cloud infrastructure. WhiteFiber is transitioning to a pure-play ETH staking and treasury model by reallocating capital from bitcoin mining to Ethereum assets. With over 24,000 ETH staked at a yield of 3.2%, the company generates recurring revenue while leveraging substantial cash reserves and liquidity. Analysts believe that this capital increase could bolster Bit Digital's market position, enabling smoother equity financing and capitalizing on Ethereum's growing appeal to institutional investors [11].

Financial Performance and Market Dynamics

Bit Digital's financial performance has been robust, with total revenue increasing by 141% year-over-year to $108.1 million in 2024. HPC/cloud services accounted for 42% of revenue at $45.7 million, while bitcoin mining and Ethereum staking contributed $58.6 million and $1.8 million, respectively. The company's strategic shift from energy-intensive bitcoin mining to Ethereum staking and cloud infrastructure aims to tap into Ethereum's role in decentralized finance (DeFi) and smart contracts. Market data indicates a significant demand-supply gap for Ethereum, driven by its utility in financial services and tech infrastructure [11]. Despite the promising outlook, Bit Digital faces execution risks, including regulatory uncertainties, competition from major cloud providers, and operational challenges. However, analysts maintain a positive outlook on the company, with a "Strong Buy" rating and an average price target indicating a substantial upside potential. The pivot towards Ethereum adoption underscores a broader trend in the corporate world, where companies are increasingly recognizing the value of integrating Ethereum into their balance sheets and operational strategies. As Bit Digital navigates these challenges and opportunities, upcoming milestones such as earnings reports and regulatory developments will likely shape its trajectory in the evolving crypto and cloud infrastructure markets [10].