Is Bit Digital More Bullish on Ethereum Compared to Bitcoin?

In a dramatic pivot, Bit Digital, a company once synonymous with Bitcoin mining, has undertaken a strategic shift that positions Ethereum at the forefront of its digital asset holdings. 

This bold move comes as the cryptocurrency market continues to mature, with institutional players seeking yield-generating assets amid global financial uncertainty.

The question now being asked by investors and analysts alike: Is Bit Digital signaling a more bullish outlook on Ethereum compared to Bitcoin?

Bit Digital's $172M Ethereum Bet

Earlier this month, Bit Digital sold 280 BTC, worth approximately $172 million, redirecting the capital to acquire over 100,000 ETH. 

This was followed by another purchase of nearly 20,000 ETH, bringing the company’s Ethereum holdings to over 120,000. This makes Bit Digital one of the largest publicly known holders of ETH among listed companies.

This major asset reallocation wasn’t done in silence. Bit Digital released an official statement via X, citing inflation concerns, distrust in fiat currencies, and financial system instability as core motivations. 

More importantly, the company highlighted Ethereum’s built-in staking yield as a key factor, an advantage Bitcoin lacks.

Read Also: Why Institutions Still Bet on Ethereum in 2025

Ethereum’s Institutional Momentum

Bit Digital’s move aligns with growing institutional interest in Ethereum. Ethereum ETFs have seen a remarkable 16 consecutive days of net positive flows, attracting $7.5 to $8 billion during that time. ETH’s recent surge, up 51% in July alone, further validates Bit Digital’s new strategy.

Meanwhile, the ETH/BTC ratio has improved by 35%, signaling Ethereum’s relative strength. With ETH trading at $3,775, near its 2025 yearly high, the timing of Bit Digital’s shift could hardly be better.

Ethereum’s staking yield also plays a crucial role. Investors can earn passive income by staking ETH, which contrasts with Bitcoin’s more static, store-of-value model. 

For publicly traded firms like Bit Digital, this yield provides a tangible return that can appeal to shareholders.

Capital Expansion to Fuel Ethereum Strategy

To fund additional ETH acquisitions, Bit Digital has proposed increasing its authorized share capital. 

According to an SEC filing dated July 25, the company plans to grow its available shares from 340 million to 1 billion. If approved in the upcoming shareholder vote on September 10, this would raise capital from $3.5 million to $10.1 million.

The expanded war chest could enable further Ethereum purchases, staking infrastructure investment, or even exploration into Ethereum-based DeFi opportunities. This aggressive capital strategy highlights Bit Digital’s long-term confidence in Ethereum’s ecosystem.

Read Also: Are Institutions Buying ETH? Analyzing the Potential

Strategic Contrast: Ethereum vs. Bitcoin

Unlike Bitcoin, which is often viewed as "digital gold," Ethereum offers a more dynamic use case.

Its smart contract functionality enables decentralized applications, NFTs, and staking. This versatility, coupled with recent scalability upgrades, gives ETH more upside potential, particularly in evolving digital economies.

Bit Digital appears to be embracing this vision. By pivoting away from Bitcoin mining and focusing on ETH accumulation, the company is making a clear statement about its belief in Ethereum's long-term growth.

Bitcoin, on the other hand, has seen slower adoption in the institutional staking and DeFi sectors. While it remains the largest cryptocurrency by market cap, it lacks the yield-generating opportunities and utility that Ethereum currently offers.

Conclusion: A Bold Strategic Shift

Bit Digital's pivot from Bitcoin to Ethereum represents more than just a portfolio adjustment, it’s a vote of confidence in ETH’s future. 

With staking rewards, increased institutional attention, and strong price performance, Ethereum seems well-positioned to outperform Bitcoin in the near term.

The upcoming shareholder vote and the firm’s execution of its expanded capital plan will be critical indicators of how deep Bit Digital is willing to go with its Ethereum-first strategy. For now, all signs suggest that Bit Digital is indeed more bullish on Ethereum than ever before.

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FAQ

Why did Bit Digital sell its Bitcoin holdings?

Bit Digital sold its Bitcoin to invest in Ethereum, citing inflation concerns, financial instability, and ETH’s staking yield as core reasons.

How much Ethereum does Bit Digital currently hold?

As of July 2025, Bit Digital holds over 120,000 ETH, acquired through two major purchases in the same month.

What is the significance of Ethereum’s staking yield?

Ethereum’s staking yield offers a passive income stream, making it more attractive to institutional investors compared to Bitcoin, which doesn’t offer yield.

How much capital is Bit Digital planning to raise?

Bit Digital is seeking shareholder approval to increase its authorized capital from $3.5 million to $10.1 million to support its Ethereum strategy.

When is the shareholder vote scheduled?

The vote on increasing Bit Digital’s authorized share capital is scheduled for September 10, 2025.

Is Ethereum outperforming Bitcoin in 2025?

Yes. In July 2025 alone, ETH surged 51% and the ETH/BTC ratio improved by 35%, signaling stronger performance than Bitcoin.