Bit Digital's stock fell nearly 4% in Wednesday's trading after the cryptocurrency mining company announced it would gradually shut down or sell its Bitcoin mining infrastructure and use the proceeds to purchase more Ethereum (ETH).
In a statement, the company indicated it would gradually convert its entire Bitcoin (BTC) reserve into Ethereum (ETH), but did not specify a deadline for completing this transition.
Cointelegraph reached out to Bit Digital, but had not received a response by the time of publication.
Bit Digital stated that its goal is to become a "pure Ethereum staking and reserve company." The company began purchasing ETH for its reserves in 2022 and launched staking service infrastructure.
As of the end of the quarter on March 31, the company held 24,434.2 ETH and 417.6 BTC as reserves.
If the company were to convert all its Bitcoin holdings into ETH today, Bit Digital's ETH reserves would increase by over 18,000 ETH, bringing the total to over 42,000 ETH.
Meanwhile, Bit Digital also announced it would sell its own stock, with the net proceeds being used to purchase more Ethereum.
Investors reacted lukewarmly to Bit Digital's pivot away from Bitcoin, leading to a 3.69% drop in Bit Digital's stock (BTBT) during Wednesday's trading session, closing at $2.35.
According to Google Finance data, the stock price further declined by 3.83% after trading closed, ending the after-hours trading session at $2.26.
The stock has fallen nearly 25% year-to-date, down 39% from its peak of $3.88 on January 6.
In the March quarter, the company reported an 18% year-over-year decline in net income, with a significant drop of 240% in net profit margin.
In April, the company acquired an industrial building in Madison, North Carolina, for $53 million to enhance its artificial intelligence and high-performance computing services.
In recent weeks, several publicly listed companies have increased their ETH holdings.
Sports betting company SharpLink Gaming purchased $463 million worth of ETH on June 13, becoming the publicly listed company with the largest ETH holdings globally. On Tuesday, SharpLink made an additional purchase of $30 million worth of Ethereum.
According to the data tracker Strategic ETH Reserve, which tracks institutions holding over 100 ETH, Bit Digital is the third-largest publicly listed company holding ETH reserves, with SharpLink at the top and the exchange Coinbase in second place.
Related: SharpLink Gaming's stock rises 7% after purchasing $30 million in Ethereum (ETH)
Original article: “Bit Digital's stock falls 4% as it abandons Bitcoin (BTC) mining in favor of supporting Ethereum (ETH)”
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