Ethereum treasury firm Bit Digital (BTBT) made its first ether purchase since October, acquiring 8,568 ETH for $20 million on May 11 at an average price of $2,334 per token. According to reports from CoinDesk, the New York-based firm's latest acquisition has already turned sour as ETH prices declined below $2,000, creating an unrealized loss of approximately $3 million for the company. The purchase represents the firm's first ETH buy since the October crypto market peak, marking a significant strategic move amid current market conditions. Following the transaction, Bit Digital's total Ethereum holdings increased to 158,461.75 ETH, valued at $313 million at current prices, positioning the company among the larger public corporate holders of Ethereum globally.
CEO Sam Tabar defended the timing of the acquisition, stating that the purchase reflects the company's view that market conditions had reset to a level consistent with their investment thesis. As reported by CoinDesk, Tabar argued in March that ETH's weakness reflected leverage unwinding rather than deteriorating fundamentals. He pointed to stablecoin settlement, tokenized assets, and AI-related transactions as long-term demand drivers for the network. In the latest statement, Tabar emphasized that the company continues to view Ethereum as "foundational infrastructure for the future digital economy" and deploys capital selectively when market conditions align with its long-term investment thesis. The purchase aligns with Bit Digital's pivot toward an Ethereum-focused treasury strategy from its previous bitcoin-centric approach.
The acquisition stands out as most digital asset treasury firms have scaled back or halted their crypto accumulation plans over the past months due to falling crypto prices and widening discounts between stock prices and underlying crypto holdings. According to CoinDesk, several firms have conserved cash, scaled back buying, or even sold assets to pay off debt. The latest purchase brings Bit Digital's total treasury holdings to approximately 158,462 ETH, worth about $313 million at current prices, with part of the ETH staked directly and another portion deployed through liquid staking products to maintain flexibility. The company noted that the latest purchase also helped lower the company's average Ethereum acquisition cost basis while supporting long-term net asset value (NAV) growth for shareholders.
Bit Digital's treasury expansion reflects a broader trend of institutional firms increasing their Ethereum exposure while the asset trades below previous cycle highs. Recently, Bitmine disclosed that it purchased 111,942 ETH worth approximately $237 million during a recent market dip, now holding around 5.39 million ETH alongside other crypto and investment assets. Bitmine revealed that more than 4.7 million ETH from its holdings have been staked through its MAVAN system, generating an estimated annual yield of roughly $276 million. The growing institutional focus on Ethereum reflects rising interest in staking rewards, tokenized finance infrastructure, and blockchain settlement systems beyond traditional Bitcoin treasury strategies. Despite continued institutional accumulation, Ethereum has remained under pressure in recent weeks amid broader crypto market weakness and geopolitical uncertainty.
