The cryptocurrency mining sector witnessed dramatic moves this week as Bit Digital (NASDAQ: BTBT) saw its shares tumble 15% in a single trading session following dual announcements of a major capital raise and strategic pivot away from Bitcoin.

Market Reacts to Dilutive Offering

On Thursday June 26, the New York-based firm revealed plans to issue 75 million new shares at $2 apiece, aiming to raise $150 million. This represents approximately 30% of the company's current market capitalization prior to the announcement. The offering price marked a 15% discount to Wednesday's closing price, triggering immediate selling pressure that drove shares down to $1.86 intraday before settling at $1.99.

【Key Data】The stock has now declined 19% over five trading days and 40% year-to-date, underperforming both cryptocurrency benchmarks and mining sector peers.

Strategic Shift to Ethereum Ecosystem

The capital raise follows Bit Digital's Wednesday announcement of transitioning from Bitcoin mining to focus exclusively on Ethereum staking and treasury management. Company filings show holdings of 24,434 ETH ($44.6M) and 417 BTC ($34.5M) as of March 31, with plans to convert all Bitcoin reserves into Ethereum.

——This marks one of the most significant pivots by a publicly-traded crypto miner—— said industry analyst Mark Johnson. "The move reflects both the pressures of Bitcoin's halving cycle and Ethereum's growing institutional appeal."

Staking Infrastructure Already in Place

Bit Digital began building Ethereum staking capabilities in 2022, positioning itself ahead of many competitors. When fully executed, the conversion would give the company about 42,000 ETH ($103M at current prices) - making it one of the largest corporate holders.

Interestingly, the transition comes despite Ethereum's underperformance relative to Bitcoin in 2025, with ETH/BTC ratio down 12% year-to-date. Some market observers question the timing, noting that Bitcoin mining profitability has improved following recent network difficulty adjustments.

Investor Concerns Mount

The stock's reaction suggests shareholder skepticism about both the dilutive offering and strategic shift. Bit Digital has dropped from 12th to 13th place among mining firms by market cap since the announcements.

【Market Impact】Public mining companies have increasingly diversified into staking and AI compute services, but Bit Digital's complete exit from Bitcoin mining represents an industry first at this scale.

As of publication, Bit Digital had not responded to requests for comment regarding investor concerns or whether any portion of the $150M raise might be allocated to maintaining Bitcoin operations.