Bit Digital (BTBT) announced yesterday that it sold its Bitcoin (BTC) holdings and moved the entire treasury to Ethereum (ETH). The company also used funds raised from a public offering to buy Ethereum.

The move has positioned Bit Digital as one of the largest publicly listed ETH holders, with 100,603 ETH valued at $254.8 million.

Bit Digital Trades Bitcoin For Ethereum

According to the press release, the company liquidated 280 BTC, worth approximately $28 million. It combined the proceeds with the $172 million raised through a public offering to acquire $192.9 million in ETH. 

This acquisition marks the completion of Bit Digital’s transition from a Bitcoin mining-focused entity to an Ethereum-centric treasury strategy. As of March 31, 2025, the firm held 24,434 ETH, and the recent purchase has more than quadrupled its position. Moreover, the firm plans to actively increase its Ethereum holdings in the future.

“We are returning to our roots: a cryptocurrency company positioned as a focused Ethereum treasury platform directed at one of the most impactful assets of our generation: ETH. There is no second best,” Bit Digital wrote.

Meanwhile, in an interview with CNBC, CEO Sam Tabar emphasized the company’s conviction in Ethereum’s long-term potential. 

“Many investors felt like they missed on the Bitcoin wave. Ethereum represents that next wave,” he said.

He explained that the company is not simply purchasing a cryptocurrency but is instead allocating its reserves into a protocol that facilitates trillions of dollars in on-chain transactions. Tabar views Ethereum emerging as a new class of strategic corporate asset, comparable to how gold and treasury bonds were once regarded, with one major distinction: Ethereum is ‘alive’. 

He added that Ethereum has a larger community of developers than any other blockchain, including Bitcoin or Solana (SOL), and is actively driving real economic activity.

“Ethereum captures real activity, real economic activity. As stablecoin volume grows, as tokenization becomes a thing, the fees generated by that activity flows back to ETH holders, and Bitcoin does not participate in that feedback loop and that value loop. We believe Ethereum is where economic throughput is frankly heading,” Tabar noted.

The announcement has sparked a strong market reaction. According to Google Finance data, Bit Digital’s shares were up by 18.37% at the close of trading on July 7. The company also saw an additional 10.3% gain in after-hours trading, reflecting investor confidence in its new strategy. 

This surge follows a trend seen in other companies shifting to Ethereum-focused strategies. For instance, BitMine experienced a 684.8% increase in stock value after committing to an Ethereum treasury.

Besides Bit Digital and Bitmine, another firm, Sharplink, has also accumulated ETH worth $462.9 million, making it the largest ETH holder among public firms. The rapid accumulation highlights a growing demand for ETH as a reserve asset.

In a post on X, analyst Eric Conner revealed that these firms have purchased a total of 388,000 ETH. In contrast, only 70,000 ETH have been minted. This suggests that demand is outpacing supply, a positive signal for the market.

“The public-company demand wave for ETH > new issuance keeps getting stronger, now fed by miners pivoting from Proof-of-Work to Proof-of-Stake yield. Keep an eye on the next 10-Q filings, ETH on corporate balance sheets might be the stealth metric of this cycle,” he posted.

Thus, the growing trend of firms accumulating ETH as a reserve asset will be one to watch this year. While corporate Bitcoin accumulation has positively impacted its price, whether the same will hold true for ETH in the long run as more firms join remains to be seen.