Bitcoin Miner Bit Digital Dumped All Its BTC For ETH—And Isn't Looking Back

Bit Digital BTBT has made a decisive pivot away from Bitcoin BTC/USD, converting its entire treasury to Ethereum and accumulating roughly 100,000 ETH on its balance sheet.

What Happened: Speaking to CNBC on Monday, CEO Sam Tabar described Ethereum as "alive," "institutional," and "the only blockchain capable of rewriting the financial system."

"We sold a profitable business—we exited Bitcoin mining," Tabar said. "We took the cash on our balance sheet, sold all our Bitcoin, and did this raise. I actually personally participated in that raise myself with my own savings, and we poured that all into Ethereum."

With $172 million in capital raised and over 417 Bitcoin liquidated, the firm has now fully embraced an Ethereum ETH/USD-only treasury strategy.

According to Tabar, this isn't just about asset exposure—it's about investing in a programmable economic engine.

"Ethereum represents that next wave," Tabar said. "We’re not just buying a coin. We’re putting our reserves into a protocol that powers trillions of on-chain activity."

Citing Ethereum's dominance in developer activity, smart contract programmability, and real-world asset tokenization, Tabar argued that Ethereum is becoming a new type of corporate treasury asset, akin to gold or bonds, but dynamic.

"Ethereum is alive. It moves with technological innovation," he said.

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Tabar stressed Ethereum's unique ability to capture real economic value through transaction fees, something he claims Bitcoin cannot replicate.

"Stablecoin volumes, tokenization, all of that flows back to ETH holders. Bitcoin does not participate in that feedback loop."

He also praised Ethereum's position in institutional infrastructure.

"There is no second best," he said, referencing Robinhood's HOOD recent move to tokenize stocks on Ethereum via Arbitrum ARB/USD. "Eventually Ethereum will eat the financial world. It will be the basic infrastructure layer to transfer value between parties without escrow agents."

Why It Matters: Bit Digital's pivot comes amid a broader revival of institutional interest in Ethereum.

Ether ETFs, once feared to be "zombie funds," saw $40 million in inflows in June, including from BlackRock's iShares Ethereum Trust ETHA.

Tabar attributes the shift to regulatory clarity.

"There's a much more friendly SEC outlook with respect to projects on the Ethereum blockchain," he said, pointing to legislation like the Genius Act and the proposed Clarity Act, which classify Ethereum as a commodity. "Gary Gensler is gone. That has unleashed Ethereum for adoption by institutions."

While ETFs offer passive ETH exposure, Bit Digital's model adds yield through staking. "You can't stake your ETH in an ETF," Tabar said. "We can stake our ETH and generate a real return on our holdings—currently around 3%—and that compounds."

He added, "That's a much more efficient way to access Ethereum's economic upside through a public vehicle like BTBT."

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