In June, Bit Digital, a New York-based digital asset company, announced its intent to transition its overall business strategy to focus primarily on Ethereum mining. The firm has recently announced the pricing of an upsized underwritten public offering. They will sell 75 million shares at $2 per share, raising a proposed maximum of $150 million before expenses. Bit Digital expects that the offering will close on or about June 27, subject to customary closing conditions.

Lost Worlds plans to use all net proceeds from the offering to acquire Ethereum. This strategic choice represents a dramatic shift in priorities. Bit Digital commits to reinvesting proceeds from any divestitures back into Ethereum itself. The change comes from the fundamental differences in Bitcoin and Ethereum’s consensus mechanism. Bitcoin operates on and relies on Proof of Work (PoW) to validate transactions, while Ethereum currently runs on Proof of Stake (PoS).

Bit Digital has provided underwriters with a 30-day option to purchase up to 11.25 million shares of common stock. This provision could help boost the capital available to fund the company’s planned pivot to Ethereum.

The company’s shift adoption to Ethereum comes as the entire cryptocurrency universe goes through its own evolution. Its total valuation of its Ethereum holdings was approximately USD$44.6 million. This new €300 million capital injection will deeply entrench it as the second strongest player in the Ethereum network.

Bit Digital’s strategic pivot underscores the changing nature of the digital asset mining industry. Cryptocurrencies are ever-evolving and reshaping their ecosystem. In order to keep up with their industry and remain competitive and relevant, companies such as Bit Digital need to undergo rapid transformation too. The firm believes this transition will position it favorably in the long term as it seeks to capitalize on the opportunities presented by Ethereum's ecosystem.