Bit Digital, a former Bitcoin mining firm, saw its stock price tumble nearly 19% over the past week, closing at $1.99 on Friday—including a sharp 15% drop in just 24 hours.
The decline follows a series of major announcements from the company, including a $150 million public offering and a strategic pivot toward Ethereum staking. On Thursday, Bit Digital revealed plans to raise $150 million through a public offering of 75 million ordinary shares, priced at $2 each.
The company intends to use the proceeds to purchase Ether, reinforcing its ongoing transition to an Ethereum-centric business model. Following the announcement, Bit Digital’s stock dipped as low as $1.86 before seeing a modest recovery in after-hours trading.
Bit Digital transitions into an Ethereum staking and treasury-focused company
The announcement comes on the heels of Bit Digital’s decision earlier this week to abandon Bitcoin in favor of Ethereum. On Wednesday, the company outlined plans to become a “pure-play Ethereum staking and treasury company,” with a focus on expanding its ETH holdings.
Bit Digital noted that it began accumulating ETH for its treasury and building out its staking infrastructure back in 2022. As part of its new strategy, the company plans to sell off its remaining Bitcoin assets to acquire additional Ether.
As of March 31, Bit Digital held 24,434 ETH and 417 BTC, valued at approximately $44.6 million and $34.5 million, respectively. Once it completes the conversion of its Bitcoin holdings, the company expects to hold around 42,000 ETH—worth roughly $103 million at current market prices.
Bit Digital stock dips 19% in five days
Investors have responded negatively to Bit Digital’s strategic shift, with shares falling nearly 4% on Wednesday following the announcement of its pivot to Ethereum.
Over the course of the week, the company’s stock dropped nearly 19%, sliding from a high of $2.40 to a low of $1.86 by Friday. Despite the sell-off, Bit Digital appears committed to its transition toward ETH.
Previously ranked as the 12th-largest Bitcoin mining company by market capitalization, Bit Digital has since slipped to 13th, according to CompaniesMarketCap. The data also shows that its stock has declined more than 40% year-to-date.
