Bit Digital (BTBT), a firm of digital assets listed on the stock market, announced that it would end up its operating operations in Bitcoin (BTC) and the transition to an Ethereum (ETH) and cash management company.
This decision marks the end of an era of the company, which has Bitcoin extraction operations across the United States, Canada and Iceland. Change reflects growing recognition of Ethereum’s economic advantages.
Bitcoin bit digital steps, completely concentrates towards Ethereum
According to the press release, the Bit Digital Strategic Pivot also involves the sale of its BTC participations and redeployed the product in Ethereum. The company has gradually increased its Ethereum operations and has also operated the implementation infrastructure since 2022.
“As of March 31, 2025, the company held 24,434.2 ETH and 417.6 BTC, valued at around 44.6 million dollars and $ 34.5 million, respectively, on this date.
As part of the transition, the company began to assess strategic options for its Bitcoin extraction operations. This can lead to their sale or closure. In addition, Bit Digital will invest all funds from this process in Ethereum.
That’s not all. The company announced a public offer of its ordinary actions in a separate press release. Bit Digital plans to use funds to acquire Ethereum.
However, the final terms and the size of the offer are still uncertain. The decision comes in the middle of the increased bitcoin extraction costs and the record hashrate.
“Bitcoin exploitation is at high energy intensity, dependent on the equipment and increasingly limited to the margin. Ethereum stipulating, on the other hand, offers a cleaner economy – yield without costly energy costs and assets quickly in depreciation.
Recently, Beincrypto said that the cost of operating a single Bitcoin increased to $ 64,000 in the first quarter of 2025, up 23%, compared to $ 52,000 in the fourth quarter of 2024. In addition, production costs should exceed $ 70,000 this quarter.
There is also increased competition, as evidenced by the increase in the difficulties of extraction of Bitcoin. He reached 126.98 Billions, fueled by an average hashrate of 14 days of 913.54 eh / s. Despite this, the transaction costs remained low, constituting only 1.3% of block awards in May and falling at less than 1% in June.
Allen explained that Bitcoin extraction faces diminished yields due to high costs and constant infrastructure investment. Minors often need to sell their bitcoin to cover these expenses, reducing their exposure and adding volatility to their assets.
On the other hand, the Bitcoin vouchers offer an exhibition to the BTC but generate little or no income. According to him, a strategy focused on Ethereum presents a hybrid approach.
It offers an exposure to assets and a recurrent yield without the high costs of mining equipment and damping.
“It is probably only the beginning. While the economic reality of the evidence of staging becomes more widely understood, more native Crypto companies – in particular minors – are starting to rethink their strategies,” added Allen.
Meanwhile, Bit Digital’s decision did not have a positive impact on its share prices. Google Finance Data showed that BTBT was down 3.69% at market fence.
The equity prices fell further by 3.83% in the trade after the opening hours. Nevertheless, the decline is not new. BTBT has been in a prolonged downward trend, down 29.4% in the past year.
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