- Bit Digital plans to triple its authorized shares from 340M to 1B to fuel Ethereum acquisitions.
- The company now holds over 120,000 ETH worth around $450M, with most staked for yield.
- A shareholder vote on the capital increase is set for September 10, with insiders holding preference shares.
Bit Digital, Inc. (BTBT) had a rough day on July 25, with shares closing at $3.15, down about 2.48%. After hours, the stock managed a small bounce to $3.1899, but the news weighing on investors is big—the company wants to triple its authorized share count. The move is aimed at fueling its aggressive pivot toward Ethereum acquisitions, signaling just how serious Bit Digital is about its ETH strategy.
Massive Share Boost to Fund ETH Push
The company plans to hold a shareholder meeting on September 10 to vote on the proposal. If approved, the number of authorized ordinary shares would jump from 340 million to 1 billion, boosting total capital from $3.5 million to $10.1 million. With 319.96 million shares already in circulation—and more locked up in warrants, options, and RSUs—the current structure isn’t giving Bit Digital the flexibility it needs. Management made it clear that this expansion is necessary for where the company wants to go next.
Ethereum Is Now the Core Focus
Bit Digital isn’t just dipping its toes into Ethereum—it’s diving in headfirst. The company now holds over 120,000 ETH, worth around $450 million, after recently buying nearly 20,000 ETH using $67.3 million from an institutional offering. Bitcoin mining? That’s old news. Ethereum’s staking model, programmability, and growing adoption are where Bit Digital sees the future of finance. Most of their ETH is staked, earning passive rewards while bolstering the security of the Ethereum network. For them, this isn’t just a speculative play—Ethereum is positioned as a key long-term treasury asset.
Shareholder Vote on the Horizon
The vote to increase capital will be held in New York, with both ordinary and preference shareholders weighing in. Preference shares, all owned by company insiders, carry 50 votes each and yield an 8% annual dividend—so insiders hold significant sway over the outcome. While the move will dilute existing shares, management argues it’s crucial for strategic growth, future financing, and potential acquisitions. If approved, the resolution will head to the Cayman Islands Registrar for filing.
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