On July 7th, crypto mining company Bit Digital (stock code: BTBT) made a market-shaking decision - selling 280 BTC and transferring all cryptocurrency assets to Ethereum. This company, which originally made its fortune through Bitcoin mining, now holds over 100,000 ETH. Upon the news, BTBT's stock price surged 18.37% that day, closing at $3.48.
The company stated on social media that they are fully betting on Ethereum's long-term value, actively increasing their Ethereum holdings, and focusing on the most influential digital asset of this generation - ETH.
This move inevitably raises a question: Is the crypto market truly experiencing a fundamental shift? Bitcoin, as "digital gold", has been the industry's anchor. However, more funds and narratives are now tilting towards Ethereum. Bit Digital's "turn" might not just be an asset allocation change, but potentially a deep structural adjustment in the crypto industry.
Why Did Bit Digital Abandon BTC and Go Cross Margin on ETH?
BTC Mining's "Survival Crisis"
Bit Digital's "comprehensive shift" is not due to a lack of love for Bitcoin, but because reality is too brutal.
The Bitcoin "halving" in April 2024 will cut miner rewards to 3.125 BTC, while network hash rate continues to soar, making competition increasingly fierce. On May 1st, 2025, hash rate hit a historical high of 831 EH/s, while hash price dropped to $0.049/TH - nearly halved compared to the same period last year. Transaction fees have not compensated for this loss. Additionally, Bitcoin mining companies consume 67 to 240 terawatt-hours annually, with each transaction consuming about 830 kilowatt-hours. This not only creates environmental issues but also forces miners to bear high electricity costs and specialized hardware investments, continuously squeezing miners' profit margins.
The company's financial report confirms this predicament: In the first quarter of 2025, Bitcoin mining revenue plummeted 64% year-on-year, with Bitcoin output sharply decreasing by 80%, producing only 126.5 Bitcoins. Under the dual pressure of high energy consumption and hardware expenditure, even when Bitcoin prices briefly exceeded $100,000, miners are experiencing a structural misalignment of "price increase, profit decline".
Another company that completed a similar transition - SharpLink Gaming (stock code: SBET) - partially resolved this model's dilemma through Ethereum Staking. Currently, SharpLink has staked all 198,167 of its ETH, earning 222 ETH in on-chain rewards since June 2nd. Compared to the sharp decline in Bitcoin mining revenue, this PoS-driven passive cash flow is not only more predictable but substantially alleviates corporate operational pressures and cash flow constraints.
Bit Digital is not the first company to exit Bitcoin mining, but it might be the first listed company to turn around in such a thorough manner. Selling 280 Bitcoins and reallocating all assets to Ethereum seems like a "self-restart" with no turning back.
ETH's "Strategic Value"
If Bit Digital's departure from Bitcoin is driven by survival pressure, choosing Ethereum is a carefully considered strategic bet.
Since 2022, Bit Digital has been laying out Ethereum Staking, now becoming one of the world's largest institutional ETH validator node operators. Simultaneously, Bit Digital is further increasing its ETH position through capital operations. The company has signed an underwriting agreement with B. Riley Securities, planning to issue 75 million common shares at $1.90 per share, with potential total fundraising reaching $162.9 million - all to be used for purchasing ETH. According to the latest data, the company's ETH holdings have jumped from 24,434 in March to approximately 100,603, with a total value close to $189.2 million, ranking among the top global corporate ETH holders.
Why did Bit Digital choose ETH over other Altcoins?
First, Ethereum's PoS (Proof of Stake) mechanism after "merging" demonstrates remarkable energy efficiency. The PoS system eliminates energy-intensive computational needs by having validators stake tokens to participate in network security and transaction verification. Ethereum's energy consumption has thus decreased by 99.95%, with each transaction consuming only 50 kilowatt-hours.
Moreover, the PoS mechanism offers a more attractive profit model: stakers earn passive income by contributing to network security, similar to bank deposit interest. Ethereum staking typically yields 4% to 7% annually, providing enterprises with more stable and predictable cash flow. The emergence of Liquid Staking Derivatives (LSDs) has further improved efficiency, enhanced capital efficiency, lowered entry barriers for staking, and significantly increased Ethereum's attractiveness to institutional capital.
At a broader ecological level, Ethereum has become the main battlefield for key innovations like stablecoin settlement, DePIN, RWA, and reStaking. These continuously growing on-chain applications not only bring ongoing transaction fees but directly enhance ETH's demand and value, further solidifying its position as "digital financial infrastructure". In its prospectus, Bit Digital specifically noted that gradually clarifying U.S. stablecoin regulations - such as the recently passed GENIUS Act - are strengthening its long-term confidence in Ethereum. The company stated, "ETH is viewed as a digital native value storage method and core infrastructure for stablecoins and decentralized applications, and we will continue to gradually expand our ETH holdings through staking returns".
Bit Digital's CEO Sam Tabar clearly stated in the company's public announcement: "We believe Ethereum has the ability to rewrite the entire financial system. Ethereum's programmable nature, increasing adoption rate, and staking yield model represent the future of digital assets".
Related Reading: 《BitMine Sparks US Stock ETH Reserve Trend with 30-Fold Surge in Four Days》
Summary
Bit Digital is not an isolated case. Companies like SharpLink Gaming (stock code: SBET) and BitMine (stock code: BMNR) have also seen stock prices significantly rebound after shifting to Ethereum reserve strategies, escaping previous performance slumps.
Now, the "ETH Microstrategy" is quietly becoming a new narrative in the US crypto stock sector. The consecutive surges of "ETH Microstrategy" stocks indicate that the market is initially acknowledging this path: using ETH as an enterprise-level reserve asset might be gradually forming a consensus.
Of course, whether this upward trend can sustain and whether it contains short-term emotional speculation remains to be verified by time and market. But one thing is certain: Ethereum is becoming the "core enterprise asset" in the crypto world and is rewriting the capital allocation methods of this era.
