Particle.news
Download on the App Store
3 ARTICLES
·
3w ago

Bit Digital’s $20M Ethereum Buy Sits $3M Underwater

The purchase signals continued faith in Ethereum demand driven by staking, tokenized assets and AI despite the company’s loss-making finances.

Bit digital bought $20 million eth for first time since october before 15% plunge

Overview

  • Bit Digital purchased 8,568 ETH on May 11, bringing its total holdings to about 158,462 ETH and leaving the new tranche roughly $3 million underwater after Ether fell below $2,000.
  • The company reported Q1 revenue of $27.5 million, beating expectations, while carrying a negative trailing-12-month EBITDA of about $144 million.
  • Bit Digital originated a $100 million delayed-draw term loan for its WhiteFiber AI infrastructure unit that can expand to $150 million, and B. Riley bought a portion of the loans.
  • CEO Sam Tabar framed the buy as a tactical move based on a market ‘reset’ and cited stablecoin settlement, tokenized assets and AI-related activity as long-term demand drivers for Ethereum.
  • The trade highlights a split in the industry because many peers have paused accumulation, and the company’s mix of direct staking and liquid staking keeps some ETH available for operations or sale if needed.