- The business said in a statement that it will switch from Bitcoin (BTC) to Ethereum (ETH) in stages.
- The company’s reserve value was 24,434.2 ETH and 417.6 BTC as of the end of the quarter on March 31.
Following the announcement that Bit Digital will be selling or winding down its Bitcoin mining infrastructure and using the funds to purchase additional Ether, the crypto mining firm’s stock dropped roughly 4% on Wednesday. The business said in a statement that it will switch from Bitcoin (BTC) to Ethereum (ETH) in stages, although it gave no specific date for when this transition would be complete.
“Pure play Ethereum staking and treasury company” is the stated goal of Bit Digital. Along with launching its staking services infrastructure in 2022, the company began purchasing ETH for its treasury reserve.
Swapping Bitcoin for Ether
The company’s reserve value was 24,434.2 ETH and 417.6 BTC as of the end of the quarter on March 31. Bit Digital would have an additional 18,000 ETH, bringing its total Ethereum reserve to over 42,000 ETH, if the company instantly converted all of its Bitcoin assets into Ethereum.
Bit Digital, meantime, has said that it would be selling shares of its own stock and will use the money to purchase further Ether. On Wednesday, Bit Digital’s stock (BTBT) fell 3.69 percent to $2.35 as investors lost faith in the company’s efforts to diversify its revenue streams outside Bitcoin.
The company’s net revenue for the March quarter was down 18% year-on-year, while the net profit margin was down a whopping 240%.
To strengthen its AI and high-performance computing offerings, the company spent $53 million in April to buy an industrial facility in Madison, North Carolina. The exposure of some publicly listed companies to Ethereum has grown in the last few weeks.
The world’s biggest publicly listed corporation in possession of Ethereum became SharpLink Gaming, a sports betting firm, the holder of $463 million worth of ETH on June 13.
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Source: https://thenewscrypto.com/bit-digital-shifts-to-ethereum-from-bitcoin-amid-strategic-pivot/