Nasdaq-listed crypto company Bit Digital is strengthening its commitment to Ethereum, moving away from a Bitcoin-centric operation.
In a filing submitted to the U.S. Securities and Exchange Commission (SEC) on July 25th, the company proposed a significant increase in its approved stock capital from 340 million shares to 1 billion shares.
Bit Digital Proposes Raising $10 Million to Expand Ethereum Reserves
According to the submitted documents, the new capital will primarily be used for Ethereum acquisition. The company aims to raise approximately $10 million, with a shareholder vote scheduled for September 10th.
The company clearly stated that the proceeds from the proposed stock issuance will support a wide range of corporate initiatives, including mergers and acquisitions, employee compensation, dividend distribution, and general operations.
Bit Digital believes its current stock capital structure limits its expansion capabilities and is not aligned with its long-term growth strategy centered on Ethereum.
This proposal reflects a dramatic shift in the company's strategic direction. Once known for its Bitcoin mining business, Bit Digital now views Ethereum as its core asset.
In early July, the company sold its 280 Bitcoin holdings and reallocated approximately $172 million to increase its Ethereum reserves.
Following this action, Bit Digital's Ethereum balance surged from 24,434 ETH to over 100,600 ETH. On July 18th, it additionally purchased 19,683 ETH, reaching a total of 120,306 ETH.
This positions it among the top 10 Ethereum holders, following SharpLink and BitMine. These companies collectively hold over 2.3 million ETH, valued at approximately $9 billion.
Nevertheless, Bit Digital's aggressive accumulation strategy demonstrates the company's growing confidence in Ethereum's future.
"ETH can become an institutional giant by providing a rare combination of capital appreciation and native yield. Its value is reinforced by strong on-chain utility and a global developer community. No other asset, including BTC, can match its deep ecosystem and inherent revenue potential." Bit Digital announced.
In addition to Ethereum accumulation, the company is actively staking its holdings and operating Ethereum validators to convert its asset base into revenue generation.
