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Bit Digital Investors Flee as Firm Raises $150 M, Dumps BTC for 42K-ETH Treasury Plan
In a shocking turn of events, Bit Digital has announced plans to raise $150 million through a public offering and simultaneously dump its Bitcoin (BTC) holdings in favor of Ethereum (ETH). The drastic shift in strategy has sent shockwaves throughout the market, with investors fleeing from the company’s stock.
As reported, the firm will be selling all of its BTC holdings, valued at approximately $34.5 million as of March 31st, and instead dedicate the funds raised to purchasing a staggering 42,000 ETH tokens. The move marks a dramatic departure from Bit Digital’s previous focus on mining Bitcoin, and has sparked widespread concern among investors.
The stock price of Bit Digital plummeted this week, dropping by nearly 19% in just five trading days. At its lowest point during the session, it touched $1.86 before recovering slightly to close at $1.99.
The decision to abandon BTC and pivot towards ETH is a significant one, particularly given Bit Digital’s earlier stance as one of the largest Bitcoin miners. However, the company has now elected to focus solely on Ethereum staking and treasury, with a view to increasing its exposure to the asset class.
It remains to be seen how this drastic shift in strategy will impact the company’s performance moving forward. For the time being, however, investors appear to be voting with their feet, abandoning ship as the company’s fortunes appear to be taking a hit.
Source: www.crypto-news-flash.com
