Through its pending acquisition of blockchain technology developer DigiPhoenix, Bit Digital is taking an audacious step deeper into the cryptocurrency world. The company is now shifting its focus away from Bitcoin mining and toward Ethereum staking. This new direction is a major turn in its long-existing digital asset strategy.

As of the end of QM1 2025, Bit Digital possessed around 24,434 ETH and 417.6 BTC. The company intends to use its new funding to increase its known Ethereum holdings. With this move, Ethereum is taking a decisive step to strengthen its status as the primary layer of the Ethereum ecosystem.

Ethereum Focus and Investment

Bit Digital is presently realigning its strategic focus to support the Ethereum network. They’re putting staking and verification at the forefront in this strategic pivot. This gives the company a cash balance of $44 million following the close of the recent direct offering. They intend to spend this money to directly buy Ethereum only. This is Bit Digital’s second major investment in Ethereum, following the first of its kind in 2022.

The company’s commitment to Ethereum is further illustrated by its expanding treasury. Bit Digital has 106,550 Ethereum coins in its vaults at present, worth more than $301 million. This major holding places Bit Digital among corporations with one of the largest corporate Ethereum treasuries in the world.

In doing so, Bit Digital became one of the early advocates of the Ethereum network as a platform for decentralized applications and its future potential. Currently, the company intends to continue to divest its remaining Bitcoin holdings in order to increase its Ethereum holdings even more.

Strategic Portfolio Reshuffle

Bit Digital completed a major portfolio reshuffle at the end of June and beginning of July. This reshuffle is telling, as it reflects the company’s big-picture decision to focus on Ethereum, not Bitcoin at this point. As part of this transition, Bit Digital plans to exit the Bitcoin mining business.

With the close of these recent capital raises, Bit Digital has unprecedented Ethereum purchasing power. The company recently raised $67.3 million, adding to the $163 million raised in a comparable campaign aimed at bolstering its Ethereum treasury.

Future Outlook

Bit Digital is making the shift to Ethereum for a better long-term growth trajectory. This move is intended to increase staking returns and diversify its cryptocurrency asset mix. Bit Digital’s strategy now largely centers around Ethereum staking and verification. They want to leverage the increasing opportunities that exist on and around the Ethereum network.

The company's decision to redirect funds from Bitcoin mining to Ethereum staking reflects a broader trend in the cryptocurrency industry, where Ethereum is gaining increasing attention for its potential in decentralized applications and finance. With a proactive approach, Bit Digital is well positioned to benefit from the rapidly evolving landscape of digital assets.