Bit Digital, a cryptocurrency company listed on Nasdaq, is strengthening its commitment to Ethereum by shifting from its previous focus on Bitcoin.
In a filing on 07/25/2024 with the US Securities and Exchange Commission (SEC), the company proposed a significant increase in authorized capital, from 340 million to 1 billion common shares.
Bit Digital proposes raising 10 million USD to expand Ethereum reserves
According to the filing, the new capital will primarily be used to purchase Ethereum. The company stated that the goal is to raise approximately 10 million USD, with the shareholder vote expected to take place on 09/10/2024.
The company also clarified that the funds raised from the share issuance will support broader corporate initiatives, including mergers and acquisitions, employee compensation, dividend distribution, and general operations.
Bit Digital believes that its current capital structure limits its expansion capabilities, especially in alignment with its long-term growth strategy focused on Ethereum.
This proposal reflects a strong shift in the company's strategic direction. Previously known for Bitcoin mining, Bit Digital now considers Ethereum a core asset in its treasury.
In early July 2024, the company sold 280 Bitcoin from its reserves, reallocating approximately 172 million USD to increase Ethereum holdings.
Following this move, Bit Digital's Ethereum balance increased from 24,434 ETH to over 100,600 ETH. An additional purchase of 19,683 ETH on 07/18/2024 raised the total to around 120,306 ETH.
This places the company in the top 10 companies holding the largest Ethereum reserves, after SharpLink and BitMine. In total, these companies hold over 2.3 million ETH, valued at nearly 9 billion USD.
However, Bit Digital's aggressive accumulation strategy shows the company's increasing confidence in Ethereum's future.
"ETH can provide a rare combination of capital growth and natural yield, making it a giant in the investment field. Its value is reinforced by strong onchain utility and a global developer community. No other asset, including BTC, can match the depth of its ecosystem and integrated earning potential," Bit Digital stated.
Not only accumulating Ethereum, the company is also actively staking and operating Ethereum validators, transforming its treasury into a yield-generating asset base.
