#BitDigital转型 Bit Digital Transformation: A New Direction for Cryptocurrency Mining?

Recently, Bit Digital's transformation operations have attracted attention in the cryptocurrency market. As a former Bitcoin mining company, why does it need to transform? What challenges and opportunities will it face after the transformation? Today, let's talk about this matter.

First, let's see why Bit Digital needs to transform. From the perspective of the overall environment of the cryptocurrency market in 2024 - 2025, the Bitcoin mining industry has encountered many troubles. In April 2024, Bitcoin's 'halving' will directly cut the miner block reward in half, from 6.25 BTC to 3.125 BTC. Moreover, mining difficulty continues to rise, with the hash rate reaching 831 EH/s by May 1, 2025. Transaction fee revenue has significantly declined, with the hash price plummeting from $0.12 in April 2024 to about $0.049 in April 2025. Coupled with high energy costs and the need for constant equipment upgrades, many mining companies have seen their profit margins squeezed tightly. Bit Digital's Bitcoin mining revenue in the first quarter of 2025 decreased by 64% year-on-year, and the amount of Bitcoin mined has sharply reduced by 80%, reflecting the industry's predicament.

In contrast, Ethereum, after completing the 'Merge' in 2022, transitioned from Proof of Work (PoW) to Proof of Stake (PoS), reducing energy consumption by 99.95%, significantly increasing its attractiveness to institutional investors. Ethereum's staking annualized yield typically ranges from 4% to 7%, providing relatively stable returns. Furthermore, in 2024, the U.S. SEC stated that protocol-level staking does not qualify as a security, alleviating regulatory concerns, and Ethereum ETFs with staking features may also be approved in the U.S. These policy-level news are all favorable for Ethereum staking businesses. Against this backdrop, Bit Digital decided to transform from a Bitcoin mining company to Ethereum staking and asset allocation, becoming a 'pure Ethereum staking and treasury company.'

This transformation mainly involves several aspects. In terms of asset allocation, they plan to convert their BTC into ETH, optimize asset structure, and focus on developing Ethereum-related businesses. They also intend to sell stocks and spin off the high-performance computing subsidiary WhiteFiber to raise funds to buy more ETH while suspending Bitcoin mining operations.