Bit Digital plunges 15% after $150M public offering, Ethereum pivot

Former Bitcoin mining steadfast Bit Digital fell sharply this week, with its stock terms tumbling astir 19% successful a five-day play to adjacent astatine $1.99 connected June 27, a 15% driblet successful conscionable 24 hours. 

The plunge follows large announcements from Bit Digital, including a $150 cardinal nationalist offering and a strategical pivot to Ethereum staking. On Thursday, the institution announced a monolithic nationalist offering, issuing 75 cardinal mean shares to rise $150 million. 

Bit Digital said it intends to contented 75 cardinal mean shares priced astatine $2 each. The proceeds from the income volition beryllium utilized to acquisition Ether (ETH), doubling down connected its erstwhile determination to displacement to an Ethereum-focused company. 

After the news, the company’s banal dipped to arsenic debased arsenic $1.86 earlier recovering somewhat during after-hours trading.

Bit Digital’s five-day banal chart. Source: Google Finance

Bit Digital pivots into an ETH staking and treasury company

The quality follows the company’s determination to ditch Bitcoin (BTC) for ETH earlier this week. On Wednesday, the institution revealed it would transition into a “pure-play Ethereum staking and treasury company,” focused connected expanding its ETH holdings.  

The institution said it had accumulated ETH for its treasury reserves and had started its staking infrastructure successful 2022. It besides said it plans to liquidate its Bitcoin holdings to acquisition much ETH.

As of March 31, Bit Digital held 24,434 ETH and 417 BTC, valued astatine astir $44.6 cardinal and $34.5 million, respectively.

When it converts each of its BTC into ETH, the institution would person astir 42,000 ETH, worthy astir $103 cardinal astatine existent marketplace prices. 

Related: Bitcoin mining steadfast Bit Digital reports revenues up astir 40%

Bit Digital banal dips 19% successful 5 days

Investors reacted unfavorably to the shift. Bit Digital shares dropped astir 4% connected June 25 pursuing the ETH pivot announcement.

Throughout the week, the company’s banal prices declined by astir 19%, going from a precocious of $2.40 to a debased of $1.86 connected Friday. Despite the reaction, the institution showed nary signs of stopping its determination into ETH. 

Bit Digital was the 12th-largest Bitcoin mining institution by marketplace capitalization. However, since its ETH pivot, CompaniesMarketCap shows a driblet to the 13th spot. The information besides shows that its banal prices person declined by implicit 40% this year. 

Cointelegraph reached retired to Bit Digital for comments but did not get a effect by publication. 

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