What happened to Bit Digital's recent Ether purchase?

Bit Digital bought 8,568 ETH for approximately $20 million on May 11 at an average price of $2,334 per token. With Ether trading near $1,980, the position is showing an unrealised loss of roughly $3 million.

Why is Bit Digital's ETH purchase attracting attention?

The purchase was Bit Digital's first Ether acquisition since October and came during a period when many crypto treasury companies were reducing or pausing digital asset purchases. The investment also occurred shortly before a significant decline in ETH prices.

How much Ethereum does Bit Digital own now?

Following the purchase, Bit Digital's treasury holdings increased to approximately 158,462 ETH. At current market prices, those holdings are worth around $313 million.

Why did Bit Digital buy Ether despite market weakness?

Chief executive Sam Tabar said the company believed market conditions had reset to levels that supported its long-term investment thesis. Management continues to view Ethereum's fundamentals positively despite recent price declines.

How risky is Bit Digital's Ethereum-focused strategy?

The strategy increases the company's exposure to Ethereum price volatility. While a recovery in ETH could boost the value of its treasury, further declines could lead to larger unrealised losses and pressure investor sentiment.

Why have other crypto treasury companies slowed their purchases?

Many firms have become more cautious because of falling crypto prices and widening discounts between their stock prices and the value of their crypto holdings. Some companies have focused on preserving cash or reducing debt instead of accumulating assets.

How does Bit Digital differ from other crypto treasury companies?

Unlike firms that primarily focus on Bitcoin accumulation, Bit Digital has shifted its strategy toward Ethereum. The company repositioned itself from a Bitcoin mining business to an Ethereum-focused treasury and infrastructure company.

Cryptocurrency

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Bit Digital's $20M Ether buy turns red

Written by Mahathir BayenaPublished May 29, 2026, 5:58 AM

Bit Digital's first Ether purchase since October has fallen into the red after the company bought $20 million worth of ETH shortly before a sharp market decline.

The company acquired approximately 8,568 ETH on May 11 at an average price of $2,334 per token, a position that is now showing an unrealised loss of roughly $3 million with Ether trading near $1,980.

“The timing reflects our view that market conditions had reset to a level consistent with our thesis,”

Said Bit Digital chief executive, Sam Tabar.

Tabar previously argued that Ethereum's weakness was driven by leverage unwinding rather than deteriorating fundamentals, highlighting stablecoin settlements, tokenised assets and artificial intelligence-related transactions as long-term growth drivers.

The purchase stands out as many digital asset treasury firms have reduced or paused crypto accumulation amid falling asset prices and widening discounts between share prices and underlying crypto holdings.

The acquisition increased Bit Digital's Ethereum treasury to approximately 158,462 ETH, valued at about $313 million at current market prices, with portions of the holdings deployed through staking strategies.

The New York-based company transitioned from its Bitcoin mining roots to an Ethereum-focused treasury model last year and also holds a controlling stake in AI infrastructure company WhiteFiber, linking its growth strategy to both digital assets and artificial intelligence.

At the time of reporting, Ethereum price was $2,011.18.