Ethereum treasurer Bit Digital (BTBT) made its first ether (ETH) purchase since the peak of the crypto market in October, but it is already underwater on the purchase as crypto prices pull back again.
The company said it bought about 8,568 ether (ETH) worth $20 million on May 11 at an average price of $2,334 per share. token.
With ETH currently trading near $1,980, the latest acquisition already stands at an unrealized loss of around $3 million after falling more than 15% over the past few weeks.
CEO Sam Tabar said “the timing reflects our view that market conditions had reset to a level consistent with our thesis.” In March, he argued on X that ETH’s weakness reflected deleveraging rather than worsening fundamentals. He pointed to stablecoin settlement, tokenized assets and AI-related transactions as long-term demand drivers for the network.
Bit Digital’s move stands out as most digital asset treasury companies have scaled back or stopped their crypto accumulation plans over the past few months. Falling crypto prices and increasing discounts between their stock prices and underlying crypto holdings have pushed numerous companies to save money, scale back purchases or even sell assets to pay off debt.
The New York-based company pivoted to an Ethereum-focused financial strategy from its bitcoin miner roots last year. The company is now positioning itself as a “Strategic Asset Company” focusing on ETH accumulation, AI infrastructure and acquisitions.
The latest purchase raised the firm’s treasury holdings to about 158,462 ETH, worth about $313 million at current prices, with part of its ETH directly deposited and another part deployed through liquid stake products to maintain flexibility.
The company also owns a controlling stake in high-performance computing firm WhiteFiber (WYFI), closely tied to the red-hot AI infrastructure.
