Bit Digital Plans to Raise $1 Billion to Buy More ETH

Bit Digital who are they?

Bit Digital (NASDAQ: BTBT), a publicly traded company with a market capitalization of approximately $1 billion, has shifted its focus from Bitcoin mining to infrastructure and Ethereum (ETH). Currently, New York-based Bit Digital holds more than 120,000 ETH—approximately $450 million—among public companies.

Bit Digital aims to expand its ETH portfolio by increasing its equity capital from 340 million to 1 billion shares. This is a strategic move in the trend of public companies accumulating digital assets.

First, the event started with Bit Digital's announcement on July 26, 2025 that the company had filed with the U.S. Securities and Exchange Commission (SEC) to request approval for a larger shareholding, which is expected to be voted on at the shareholders' meeting on July 18, 2025. The goal of this action is to increase the total authorized shares from $3.5 million to $10.1 million. The number of common shares increases from 340 million to 1 billion, while the number of preferred shares remains at 10 million.

The main goal is to use the raised funds to purchase more ETH. This was done by following up on previous purchases, such as the purchase of 19,683 ETH for $71 million on July 18, 2025, bringing the total ETH I own to 120,306 ETH. Bit Digital raised $67.3 million in July 2025 and $172 million in June 2025 to buy ETH, indicating that it has completely shifted from Bitcoin mining to an ETH treasury strategy since 2022. The

company is currently staking and operating validators on the Ethereum network, earning profits from the ETH it holds. According to sources, CEO Sam Tabar aims to become the world's leading ETH holder and believes in Ethereum's long-term potential as a digital financial platform.

Start when Ethereum is near old ATH?

Bit Digital could buy an additional 250,000–300,000 ETH—depending on the current market price, around $3,740/ETH—by raising $1 billion. This would bring its total ETH holdings to 370,000–420,000 ETH, or $1.4–1.6 billion. This would solidify Bit Digital’s position as one of the largest publicly disclosed ETH holders, surpassing rivals like Bitmine Immersion Technologies and SharpLink Gaming. For Ethereum specifically, this move could increase demand, supporting ETH prices above $3,500 and encouraging other companies to join in accumulation.

However, this plan faces many risks. Issuing more shares could lead to dilution of the value of the shares, putting pressure on BTBT's stock price, which has been volatile (up 32% over the past month but down 1.2% recently). If the price of ETH declines (as it did in 2022), the large investment could be a loss, especially as the costs of operating validators and staking increase due to energy and hardware costs.

Conclude

To demonstrate its commitment to building its ETH treasury and shaping the institutional investment trend in crypto, Bit Digital plans to raise $1 billion to buy more ETH. Bit Digital is improving its financial position by using a strategy focused on staking and validators. It also helps boost the Ethereum ecosystem. But success depends on its ability to manage regulatory risks, price volatility, and compete with other blockchains. This move could take Bit Digital to new heights in a buoyant market, but be careful to avoid shocks.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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