Change from Bitcoin to Ethereum
Cryptocurrency company Bit Digital significantly altered its corporate treasury strategy by moving from Bitcoin to Ethereum. This is consistent with the company’s belief in the potential of Ethereum to revolutionize the overall financial system.
$172 Million Gamble on Ether
To execute this strategy, Bit Digital used $172 million of a recent public offering, along with cash obtained from the sale of 280 Bitcoin, to buy 100,603 ETH. It is now the second-largest corporate owner of Ethereum, following Coinbase Global.
Stock Notable Surge
The news drove Bit Digital’s shares 29% higher, restoring its market cap over $1 billion. The action is what makes sense in alignment with the long-term promise of Ethereum, according to CEO Sam Tabar, who views Bit Digital as “the most preeminent ETH holding company in the world.”
Ethereum Becoming the New Corporate Treasury Target
Even as some analysts were cautioning against extremely aggressive treasury strategies, this may be the beginning of more and more companies looking towards Ethereum as an appropriate treasury asset. While Bitcoin has been the reigning strategy in corporate crypto treasuries, the focus on Ethereum by Bit Digital has laid the groundwork for growing diversification of corporate assets away from Bitcoin.
Crypto treasury strategies are gaining popularity among corporations, with several firms buying Bitcoin in the past few months. It is less common, however, for Ethereum-oriented strategies, and Bit Digital’s move suggests a potential shift in the market’s strategy toward corporate crypto investments.
