BIT Digital sold 280 Bitcoin (BTC) of his treasury and used the yield to buy Ethereum (ETH), so that the completion of a transition from three months to a treasury strategy for Ethereum alone is alone.
By one Announcement of July 7The New York-based miner also concluded an underwitte stock sale that has collected around $ 172 million in gross revenue, as stated in the company’s announcement.
The management has used the net cash to acquire extra ETH, so that the balance was raised on 31 March to around 100,603 ETH of 24,434 ETH.
CEO Sam Tabar said that the programmable design of Ethereum, the growing acceptance and the native expansion yield “rewrite the entire financial system” and present a superior proposition of the value compared to inactive bitcoin.
Tabar added that BIT digital plans to “add more aggressively” ETH and position itself as a targeted Ethereum Treasury vehicle on public markets.
Before the supply offer and coin sales, BIT Digital maintained a hybrid treasury that held both Bitcoin and Ethereum during the operation of Hash-rate rental contracts and validator nodes.
The ETH purchases remove the BTC exposure in full, so that the company has an eatery position worth around $ 261 million at the $ 2,600 spott rate from Monday.
Management is planning to use most of the new inventory through its existing Validator infrastructure, so that the interests are converted into an interest rate flow at the chain that can support operational costs and future purchases.
Shift of the business question
Ethereum -Developer and lawyer Eric Conner noticed the pivot On social media, detecting the timeline of the submission of 31 March to the announcement of 7 July and calculated a four -time increase in the company’s ETH pile of the company within a quarter.
He argued that setting up yields from business treasury changes into self -financing engines, which contrast the Movement of Bit Digital with the decision of the strategy to stay exclusively in Bitcoin.
Conner added that the demand from the public company to Ether seems to be exceeding the monthly issue of the network of approximately 112,000 ETH, referring to recent Treasury movements by fund manager Tom Lee and founder of Consensys Joseph Lubin at the Sharplink Board.
The strategy of BIT Digital is in line with a broader shift between former proof-of-work miners who were confronted with margin compression after the most recent block-release of Bitcoin.
By turning to proof-of-stake economy, the company can generate a predictable remuneration percentage of approximately 4% without the energy costs related to the purchasing of hash rate.
