Bit Digital Seeks Shareholder Approval to Expand Share Capital for Ethereum Accumulation
Ethereum staker and former Bitcoin miner Bit Digital (NASDAQ: BTBT) is seeking shareholder approval to significantly increase its authorized share capital, a move aimed at enabling the company to raise substantial equity to support further accumulation of ETH.
In a proxy statement filed on July 25, the company said its board had approved a proposal to expand its authorized share capital from $3.5 million—representing 340 million ordinary shares and 10 million preference shares—to $10.1 million, allowing for up to 1 billion ordinary shares while keeping the preference share count unchanged.
The proposal comes as Bit Digital pivots further away from its legacy Bitcoin mining business. The company has rebranded itself as a digital asset treasury firm with a strategic focus on Ethereum, following setbacks in its asset-light mining model due to issues with its hosting partner Coinmint.
In recent months, Bit Digital has sold off its Bitcoin holdings and reduced mining exposure, publicly committing to expanding its ETH reserves. The proposed equity raise would provide fresh capital to support this shift.
In its filing, Bit Digital noted that the current cap on authorized shares limits its flexibility to raise funds for corporate growth. While no specific issuance plans have been finalized, the company stated that any future offerings would support its Ethereum strategy and potentially fund broader initiatives such as acquisitions, employee compensation, and other general corporate purposes.
The proposal follows Bit Digital’s recent $175 million public offering to acquire more ETH, pushing its holdings to over 120,000 ETH. ETH has been trending higher against BTC in recent weeks amid a wave of corporate treasury strategies centered on Ethereum.
