Bit Digital liquidated 280 BTC to buy ETH. It also allocated $172 million raised from a recent public offering toward Ethereum investment. As a result, the company’s ETH holdings rose from 24,434 in Q1 2024 to 100,603. This bold move positively impacted the company’s stock price. 

The stock surged 20%, reaching $3.52, while the weekly increase hit 60%. This spike reflects investor confidence in the Ethereum strategy. 

Ethereum Strategy Based on Three Key Reasons 

Bit Digital CEO Sam Tabar cited three main reasons for the transition. First, Ethereum’s programmable structure. Second, its growing global adoption. Third—and most crucial—is the yield generated through staking. 

Tabar stated, “We believe Ethereum will reshape the entire financial system. We currently hold over 100,000 ETH, but we aim to significantly grow this number,” summarizing the company’s vision. 

Bit Digital began accumulating ETH back in 2022 with steady purchases. With this latest move, the company’s focus on Ethereum has intensified. Moreover, other publicly traded firms are also increasing their ETH holdings. 

Ethereum Treasuries Growing—Is Bitcoin Losing Its Throne? 

The number of companies shifting to Ethereum is rapidly increasing. Firms like SharpLink Gaming and BitMine have also started accumulating ETH. Notably, BitMine raised $250 million in funding. Additionally, crypto researcher Tom Lee has joined BitMine’s board of directors. 

Ethereum co-founder Joseph Lubin argues that this trend will accelerate DeFi adoption on Wall Street. Meanwhile, ETH price has fallen 2% in the last 24 hours, reportedly due to a transfer of ETH to Coinbase by the U.S. government. 

On the other hand, Bitcoin investment remains high. Institutions purchased a total of 8,400 BTC last week. However, Michael Saylor’s company has paused its 12-week buying streak. It seems some major investors are choosing to pivot to Ethereum. 

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The post They Sold All Their Bitcoin and Switched to Ethereum! Here’s Why  appeared first on Coin Engineer.

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The company said in a statement on Tuesday that its restructuring plan had allowed it to reduce its debt by $400 million by converting its equipment loan and convertible noteholder debt into equity.

Core Scientific said its plan could further reduce its debt by converting the remaining convertible debt, providing investors with valid guarantees, and using its existing cash to pay down debt.

The CEO of Core Scientific, Adam Sullivan, said in a statement: “We are ready to execute on our pragmatic growth plan, continue to prepare for the upcoming halving, and create value by converting energy into high-value computing for bitcoin mining and other potential applications.”

Core Scientific, which currently operates mining facilities with a capacity of 724 megawatts in five states in the United States, plans to increase its total mining capacity by more than 50% over the next four years as it plans to bring new Bitcoin miners online.

In December 2022, the company filed for Chapter 11 bankruptcy protection after declines in cryptocurrency prices and a series of market failures. Major creditors included BlackRock and investment bank B. Riley.

Shares of bitcoin miners Marathon Digital and Riot Platforms have fallen this month following bitcoin volatility after the United States approved multiple spot bitcoin exchange-traded funds on January 10. Marathon Digital’s shares have fallen 29.74% since the beginning of the month, and Riot Platforms has fallen 26.77%.

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