Bit Digital (BTBT) changes course to become a dedicated ether
Stacking and the Treasury Operation, the company said Wednesday.
The New York-based company will leave Bitcoin
Mining business completely, reused its assets and capital in its growing ETH strategy.
The company began to build its ether position and Ethereum -Stacking Infrastructure in 2022. March 31, Bit Digital 24,434.2 ETH, valued at $ 44.6 million and 417.6 BTC worth $ 34.5 million. It plans to convert the remaining bitcoin to ether over time.
To finance the transition, Bit Digital has started a process to sell or run its Bitcoin mining. The net proceeds from the disposal are reinvested in ether. No specific timeline was given for the sale or conversion of assets.
The message marks a significant turn for a company that was once rooted in Bitcoin mining, especially given the incredible run BTC has been compared to ETH. ETH/BTC ratio has fallen 75% since December 2021.
However, the move is not a big surprise considering how hard the mining sector has been since last year’s halving, which cuts the BTC rewards for miners to half and pressed merge margins despite rally in Bitcoin prices.
The company has also announced that it will sell shares for financing the purchase of more ether and that its high -performance computing (HPC) The subsidiary, Whitefiber, has submitted a draft registration letter at Securities and Exchange Commission in terms of becoming public.
BTBT has fallen 3.41% in after hours of trade.
