Bit Digital shifts treasury strategy with 100K ETH buy; stock surges 29%

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Digital plus institution Bit Digital has pivoted its firm treasury strategy from Bitcoin to Ether, saying the displacement reflects its condemnation that Ethereum volition “rewrite the full fiscal system.”

Bit Digital utilized $172 cardinal successful proceeds from a caller nationalist offering, on with funds from the merchantability of 280 Bitcoin (BTC), to get Ether (ETH), the institution disclosed connected Monday.

As of the extremity of the archetypal quarter, Bit Digital held 24,434 ETH — a presumption that has since grown to 100,603 ETH. The company's stock, which trades nether the awesome BTBT, surged much than 29% connected the news, bringing its marketplace capitalization backmost supra $1 billion.

The displacement makes Bit Digital the second-largest firm holder of ETH, with lone Coinbase Global holding a larger involvement successful the integer asset, according to CoinGecko data.

Cointelegraph reported connected Bit Digital’s nationalist offering and Ether pivot connected June 27, but the institution has been accumulating and staking ETH since 2022.

Bit Digital CEO Sam Tabar said the institution is “aligning itself with Ethereum’s semipermanent imaginable and positioning itself arsenic a focused Ethereum treasury level successful the nationalist markets,” with plans to go “the astir preeminent ETH holding institution successful the world.”

Crypto treasury strategies summation traction

Corporate crypto treasury strategies person gained momentum this year, though astir enactment has centered connected accumulating and holding Bitcoin.

In the past period alone, astatine slightest 21 entities person added BTC to their equilibrium sheets, according to manufacture data. The largest firm holder, Strategy (MSTR), has amassed 597,323 BTC.

However, immoderate analysts person raised concerns that the treasury strategy is becoming overplayed, peculiarly for companies that deficiency a beardown underlying concern oregon a wide program for managing their BTC holdings.

Beyond Bitcoin, crypto treasury strategies are acold little common. According to Bloomberg, 1 caller institution plans to rise $100 million to accumulate Binance’s BNB (BNB), a determination that mirrors Strategy’s Bitcoin treasury model.

So far, organization involvement successful Ethereum has remained comparatively muted, judging by inflows into ETH exchange-traded funds since their support past year. However, the tide whitethorn beryllium starting to turn, with US Ether funds signaling inflows for seven consecutive weeks.

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