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3w ago

Bit Digital Buys $20 Million of Ether and Quickly Logs a $3 Million Unrealized Loss

The trade tests the firm's plan to make Ethereum a core treasury asset while it sustains losses and funds its AI infrastructure efforts.

Bit digital bought $20 million eth for first time since october before 15% plunge
Bit digital grows treasury to 158,462 eth with new $20m purchase

Overview

  • Bit Digital purchased roughly 8,568 ETH for $20 million on May 11, executing the company’s first ether buy since October.
  • The new holding boosted the treasury to about 158,462 ETH but sits roughly $3 million underwater after ETH fell below $2,000 and dropped more than 15 percent.
  • CEO Sam Tabar says the buy reflects a view that the market has 'reset' and that long-term demand for Ethereum will come from stablecoin settlement, tokenization and AI-related transactions.
  • The company remains loss-making despite a Q1 revenue beat of $27.5 million and carries negative EBITDA over the last 12 months, and it recently originated a $100 million delayed-draw loan for its WhiteFiber AI unit.
  • Bit Digital’s accumulation stands in contrast to many public crypto treasuries that have paused buys to conserve cash, and the firm now ranks among the largest public corporate ETH holders, surpassing Coinbase.