Bit Digital, a company previously focused on Bitcoin mining, saw its share price decline after announcing a $150 million stock sale and a shift toward Ethereum staking.
On June 26, Bit Digital stated that it would sell 75 million new shares at $2 each. The goal is to raise funds to expand its Ethereum holdings and grow its staking operations.
This follows Bit Digital’s decision to shift its focus from Bitcoin
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The market reaction has not been positive. After the company shared its new strategy, its stock fell by nearly 4%. The decline continued after the public offering was announced, with shares dropping by 15% in just one day.
Bit Digital’s stock fell nearly 19% over the whole week, which went from $2.40 to $1.86 before ending on June 27 at $1.99.
The company had already started building its ETH reserves and setting up its staking infrastructure back in 2022.
Bit Digital held 24,434 ETH and 417 BTC, worth about $44.6 million and $34.5 million at the end of March. Once it finishes converting all its Bitcoin into Ethereum, the company expects to hold around 42,000 ETH, which is roughly $103 million based on current prices.
Meanwhile, the Smarter Web Company recently secured £41.2 million ($56.6 million) in new funding after purchasing a large amount of Bitcoin. What did the company say? Read the full story.
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