On July 7, the crypto mining firm Bit Digital (stock code: BTBT) made a market-shaking decision — to sell 280 Bitcoins from its holdings and transfer all its cryptocurrency assets to Ethereum. This company, which once thrived on Bitcoin mining, now holds over 100,000 ETH. Upon this news, BTBT's stock price surged by 18.37% on the same day, closing at $3.48.

The company posted on social media, stating it is fully committed to the long-term value of Ethereum, actively increasing its ETH holdings, and strategically positioning itself in this generation's most influential digital asset — ETH.

This move prompts deep reflection: Is the crypto market's direction truly undergoing a fundamental shift? Bitcoin, known as "digital gold," serves as the industry's anchor. However, an increasing amount of capital and narrative are now tilting towards Ethereum. Bit Digital's "pivot" may not only be an asset allocation change but potentially a profound restructuring of the crypto industry.

Why Did Bit Digital Abandon BTC and Go All-In on ETH?

The "Survival Crisis" of BTC Mining

Bit Digital's "full-scale transition" is not due to a lack of love for Bitcoin but rather the harsh reality it faces.

The Bitcoin "halving" in April 2024 will halve the mining rewards to 3.125 BTC, while the network hash rate continues to soar, intensifying the competition. On May 1, 2025, the hash rate reached a record high of 831 EH/s, yet the hash price had plummeted to $0.049/TH — nearly halved from the previous year. Transaction fees have not offset this loss. Furthermore, Bitcoin mining firms consume between 67 and 240 terawatt-hours of electricity annually, with a single transaction consuming about 830 kilowatt-hours. This not only poses environmental issues but also burdens miners with high electricity costs and specialized hardware investments, squeezing their profit margins.

The company's financial reports also confirm this dilemma: in the first quarter of 2025, Bitcoin mining revenue plummeted by 64% year-over-year, Bitcoin production sharply dropped by 80%, yielding only 126.5 Bitcoins. Under the dual pressure of high energy consumption and hardware expenses, despite Bitcoin's price briefly exceeding $100,000, miners are experiencing a structural dislocation of "price rise, profit decline."

Meanwhile, another company that has similarly made the transition—SharpLink Gaming (stock symbol: SBET)—has partially addressed this pattern dilemma through Ethereum staking. Currently, SharpLink has staked all of its 198,167 ETH and has received 222 ETH in on-chain rewards since June 2nd. Compared to the reduced Bitcoin mining rewards, this PoS-driven passive cash flow is not only more predictable but also substantially alleviates the operational pressure and cash flow constraints of the enterprise.

Bit Digital is not the first enterprise to exit Bitcoin mining, but it may be the first publicly traded company to pivot in such a thorough manner. By selling 280 Bitcoins and reallocating all assets to Ethereum, this decision seems like a resolute "self-reboot" move.

Ethereum's "Strategic Value"

If Bit Digital's pivot away from Bitcoin was due to survival pressure, then the choice of Ethereum was a carefully considered strategic bet.

Since 2022, Bit Digital has been laying the groundwork for Ethereum staking business and has now become one of the world's largest institutional ETH staking node operators. At the same time, Bit Digital is further increasing its position through capital operations. The company has signed an underwriting agreement with B. Riley Securities to issue 75 million shares of common stock at $1.90 per share, with total expected funding of up to $162.9 million, including the issuance of additional shares. All of this funding will be used to purchase ETH. According to the latest data, the amount of ETH held by the company has surged from 24,434 coins at the end of March this year to approximately 100,603 coins currently, with a total value close to $189.2 million, ranking high on the global ETH corporate holdings list.

So why did Bit Digital choose ETH as the target of its transformation rather than other altcoins?

Firstly, the PoS (Proof of Stake) mechanism that Ethereum transitioned to after the "merge" demonstrates astonishing energy efficiency. The PoS system involves validators staking tokens to participate in network security and transaction validation, eliminating energy-intensive computational requirements. As a result, Ethereum's energy consumption has been reduced by 99.95%, with the energy consumption of a single transaction being only 50 kWh.

Furthermore, the PoS mechanism provides a more attractive profit model: stakers earn passive income by contributing to network security, similar to bank account interest. The Ethereum staking annual return rate typically ranges from 4% to 7%, providing more stable and predictable cash flow for enterprises. The emergence of Liquidity Staking Derivatives (LSDs) has further improved efficiency, increased capital efficiency, reduced barriers to entry for staking, significantly enhanced the attractiveness of the Ethereum ecosystem to institutional capital.

On a broader ecosystem level, Ethereum has become the main battlefield for key innovations such as stablecoin settlements, DeFi Prime Brokerage, RWA, Restaking, and more. These growing on-chain applications not only bring continuous transaction fees but also directly increase demand for ETH and its value, further strengthening its position as the "digital financial infrastructure." In its prospectus, Bit Digital also specifically pointed out that the U.S.'s gradual clarity on stablecoin regulation — such as the recently passed "GENIUS Act" — is reinforcing long-term confidence in Ethereum. The company stated, "ETH is seen as a digital native value store and a core infrastructure for stablecoins and decentralized applications. We will continue to expand our ETH holdings through staking rewards."

In a public statement, Bit Digital's CEO Sam Tabar explicitly stated, "We believe Ethereum has the ability to rewrite the entire financial system. Ethereum's programmable nature, growing adoption, and staking reward model represent the future of digital assets."

Related Reading: "Surging 30x in Four Days, BitMine Sparks a Wave of Ethereum Reserve Trend in the U.S. Stock Market"

Summary

Bit Digital is not an isolated case. Companies like SharpLink Gaming (ticker: SBET) and BitMine (ticker: BMNR) have also seen a significant stock price rebound after shifting to an Ethereum reserve strategy, breaking free from previous underperformance.

Today, the "ETH Microstrategy" is quietly becoming a new narrative in the U.S. stock crypto sector. The successive surges of individual stocks with an "ETH Microstrategy" suggest that the market is starting to acknowledge the path of treating ETH as a corporate reserve asset, potentially forming a consensus.

Of course, whether this surge trend can continue and whether there are elements of short-term speculative hype remain to be further validated by time and the market. However, it is certain that Ethereum is becoming the "core corporate asset" in the crypto world, reshaping the capital allocation of this era.

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