Bit Digital says goodbye to Bitcoin mining and bets on Ethereum

The company BTBT announced that it will convert all its assets to Ethereum and will completely abandon your mining business of Bitcoin.

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• Digital bit He has more than ETH 24,000 in his treasury and wants to expand even more.
  
• Plans to sell your mining operations BTC To finance this transition.
  
• Your subsidiary Whitefiber seeks to go with the US. UU.

The technology company based in New York, Bit Digital (BTBT)announced this week a radical transformation in its business model: It will stop undermining Bitcoin (BTC) and will focus all its resources on the ecosystem Ethereum (eth), specifically in staking and treasury operations.

The decision represents a significant turn for a firm that was known in the past as one of the many dedicated to mine BTC From now on, your new priority will be to expand your position in Ethereum, Taking advantage of the opportunities offered COINDESK.

Of Bitcoin to Ethereum: reasons behind the change

Digital bit He began his foray into the staking of Ethereum In 2022, when he began to build his infrastructure and accumulate Eth In his balance. According to figures as of March 31 of this year, the company already has 24,434.2 Eth, valued at USD $ 44.6 million.

In addition, it still retains 417.6 BTC, valued at USD $ 34.5 million. Nevertheless, The company has revealed that its objective is to progressively liquidate these bitcoins to turn them into Ethereum.

This strategic change responds to several factors. One of the main ones is The increase in operating costs after the last halving Bitcoin In 2024, which reduced rewards for the miners. Although the price of BTC It has risen, margins have been reduced and market conditions are increasingly demanding.

Even though the relationship ETH/BTC It has fallen 75% since December 2021, Digital bit Bet on the long -term potential of the ecosystem Ethereum, especially after staking consolidation as a way to generate passive yields.

Sales and expansion plans

The company has already begun the process to sell or dismantle its mining operations Bitcoin. Although it did not provide an exact schedule, it made it clear that the net funds that are obtained will be reinvested in the purchase of more Eth.

Besides, Bit DigitaL plans to issue new actions to finance this transition, showing its total commitment to its new strategy.

In parallel, its subsidiary Whitefiber, Specialized in high performance computing (HPC), presented a preliminary registration letter before the Bag and Securities Commission (SEC). This indicates that they are considering an IPO in the near future.

Diversification in crypto reserves

The decision of Digital bit It reflects a broader trend in the cryptocurrency industry: the diversification of business models and the search for traditional mining alternatives.

With increasingly strict regulations, increasing energy costs and fierce competition in the mining sector, companies such as Digital bit They are exploring more sustainable and scalable ways to participate in the Blockchain world.

It will be necessary to observe if other signatures will follow the same path or if Digital bit It advances to a new stage dominated by Staking, Digital Infrastructure and Development on Ethereum.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

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