TLDR
- Bit Digital Plans Share Boost to Fund Massive Ethereum Expansion Effort
- BTBT Eyes Ethereum Growth, Seeks Tripling of Share Authorization
- Bit Digital Shifts to ETH, Proposes 1B Shares for Strategic Flexibility
- BTBT Stock Dips as Firm Pushes for Ethereum-Focused Share Increase
- Bit Digital Bets Big on Ethereum, Sets Vote to Triple Share Capital
Bit Digital, Inc. (BTBT) saw its stock close at $3.15 on July 25, down 2.48% by market close. However, it slightly recovered in after-hours trading, rising 1.27% to $3.1899. The decline came amid news of the company’s plan to triple its authorized share capital to fund additional Ethereum acquisitions.
The company confirmed it will hold a shareholder meeting on September 10 to vote on the proposed capital increase. Bit Digital plans to raise its authorized ordinary shares from 340 million to 1 billion, increasing its total authorized capital from $3.5 million to $10.1 million.
Currently, Bit Digital has 319.96 million shares outstanding, with more reserved for issuance through warrants, options, and RSUs. If approved, the capital increase would allow the board to issue more shares. Management stated that the existing share structure no longer supports the company’s strategic direction.
Ethereum Holdings Drive Strategic Shift
Bit Digital continues shifting its focus toward Ethereum, with over 120,000 ETH in its treasury as of July 18. This follows a recent purchase of 19,683 ETH funded by a $67.3 million direct offering to institutions. With ETH now valued around $450 million, the company ranks among the top public holders of the asset.
The firm moved away from Bitcoin mining and adopted Ethereum as its primary digital asset. It views Ethereum’s programmability, staking model, and adoption rate as central to digital finance. Bit Digital not only holds ETH but also runs validators and stakes most of its holdings for network yield.
This staking strategy allows the company to earn passive income while contributing to Ethereum’s security. The company believes Ethereum underpins real economic activity, unlike purely speculative assets. Its strategy positions ETH as a core treasury asset for long-term growth and utility.
Shareholder Vote Set for September
The proposed capital increase will be presented to shareholders for approval at the upcoming general meeting in New York. Both ordinary and preference shareholders must vote in favor for the resolution to pass. The record date for voting eligibility was set as July 18, 2025.
The board unanimously supported the capital increase and is urging shareholders to do the same. If approved, the company will file the resolution with the Cayman Islands Registrar. While the issuance plan isn’t finalized, the company seeks flexibility for future financing, acquisitions, or equity plans.
Bit Digital’s preference shares carry 50 votes per share and are fully held by company insiders. These shares receive 8% annual dividends. Any additional share issuance will dilute existing shareholdings but enable broader strategic moves.
