Bit Digital Quits BTC Mining to Focus Exclusively on ETH Staking Strategy

Bit Digital (BTBT) Changes Direction to Focus on Ethereum

The company said on Wednesday that the staking and treasury volume will be $2,432.91 ETH .

New York-based company to exit bitcoin industry entirely

and will completely refocus its business on BTC mining worth $107,634.59 , redirecting its resources and capital to the developing ETH strategy.

The organization began building its Ethereum position and staking infrastructure in 2022. As of March 31, Bit Digital held 24,434.2 ETH worth $44.6 million and 417.6 BTC worth $34.5 million. It plans to convert its remaining bitcoin into Ethereum going forward.

To finance this transition, Bit Digital has initiated the process of selling or winding down its bitcoin mining operations. The net proceeds from the sale will be reinvested into ether. No specific timeline for the sale or conversion of assets has been provided.

The announcement marks a significant turnaround for the company, which previously mined Bitcoin, especially given the enormous rise of BTC compared to ETH. The ETH/BTC ratio has fallen by 75% since December 2021.

However, the move doesn't come as much of a surprise given how tough the mining industry has become following the halving of BTC mining rewards last year, which has led to lower profitability despite rising Bitcoin prices.

The company also announced a stock sale to fund the acquisition of more ether, and its high-performance computing (HPC) subsidiary WhiteFiber filed a draft registration letter with the Securities and Exchange Commission to go public.

BTBT fell 3.41% in after-hours trading.

Source: cryptonews.net