Bit Digital to Boost Staked ETH from 10% to 20%, Reinvest Mining and WhiteFiber Cash
Bit Digital plans to reinvest cash flows from its profitable Bitcoin mining operations, its majority stake in WhiteFiber and strategic M&A opportunities into Ethereum holdings to grow ETH per share non-dilutively. The company is targeting crypto-adjacent, cash-generating acquisitions to boost its staked ETH ratio from 10% to 20%.
1. Strategic Reinvestment Plan
Bit Digital intends to channel cash generated from its Bitcoin mining operations, its majority stake in WhiteFiber and future acquisitions into Ethereum holdings. This non-dilutive approach aims to increase ETH per share by converting diverse revenue streams into long-term crypto assets.
2. M&A Focus and Criteria
Management is actively evaluating acquisition targets that generate or will soon generate cash, explicitly avoiding other DATCOs. The company seeks crypto-adjacent businesses aligned with Ethereum infrastructure or AI applications, leveraging past success with WhiteFiber to guide selection.
3. Ethereum Staking and Yield Strategy
Bit Digital currently stakes approximately 10% of its ETH natively through Figment and engages external managers for enhanced yield. The target is to raise the staked portion to 20% while managing associated risks, reinforcing its role in Ethereum’s foundational infrastructure.