Bit Digital cut its Bitcoin mining operations, shifted proceeds into Ethereum, and plans to sell shares to build ETH reserves, triggering a 4% stock decline.
On Wednesday, the crypto mining firm Bit Digital announced that it would sell or wind down its Bitcoin mining infrastructure and use the proceeds to purchase additional Ether. Consequently, shares in the company experienced a nearly 4% decline.
The company announced in a statement that it would progressively transition its entire Bitcoin (BTC) stack to Ether (ETH). However, it did not provide a deadline for the transition.
By publication, Cointelegraph had not received a response from Bit Digital.
Bit Digital aims to establish itself as a “pure play Ethereum staking and treasury company.” In 2022, the organization initiated the acquisition of ETH for its treasury reserve and the development of its staking services infrastructure.
The firm maintained 24,434.2 ETH and 417.6 BTC in its reserves as of March 31, the end of the quarter.
BitDigital’s ETH reserve would increase by over 18,000 ETH to over 42,000 ETH if the company converted all of its Bitcoin holdings into ETH today.
In the interim, Bit Digital disclosed that it would be liquidating its stock, with the net proceeds allocated to acquiring additional Ether.
The stock price experiences a decline in response to the Ether move.
During Wednesday’s trading session, Bit Digital’s stock (BTBT) experienced a 3.69% decline to $2.35 as investors became increasingly disenchanted with the company’s decision to pivot away from Bitcoin.
According to Google Finance, the stock experienced an additional 3.83% decline following the conclusion of trading, concluding the after-hours trading session at $2.26.
@@@@@@@@
The stock has declined by almost 25% year-to-date and by 39% from its peak of $3.88 on January 6.
In the March quarter, the company’s net revenue decreased by 18% year-over-year, while its net profit margin experienced a significant decline of 240%.
The organization acquired an industrial building in Madison, North Carolina, for $53 million in April to enhance its high-performance computing and artificial intelligence capabilities.
An increasing number of companies are pursuing ETH.
Certain publicly traded companies have recently increased their exposure to ETH.
SharpLink Gaming, a sports wagering firm, acquired $463 million in Ethereum (ETH) on June 13, becoming the world’s largest publicly traded company to possess the cryptocurrency. SharpLink acquired an additional $30 million in Ether on Tuesday.
Bit Digital is the third-largest publicly traded company to hold ETH in its reserve, according to Strategic ETH Reserve, a data tracker that monitors institutions holding more than 100 ETH. SharpLink and Exchange Coinbase are the two largest, with Coinbase ranking second.
