Ethereum treasury firm Bit Digital (BTBT) made its first purchase of ether (ETH) since the cryptocurrency market peak in October, but is already underwater on its acquisition as cryptocurrency prices retreat again.
The company said it purchased approximately 8,568 ether (ETH) for $20 million on May 11, at an average price of $2,334 per token.
With ETH currently trading near $1,980, the latest acquisition already has an unrealized loss of approximately $3 million, having been down more than 15% in recent weeks.
Chief Executive Sam Tabar said “the timing reflects our view that market conditions had been restored to a level consistent with our thesis.” In March, he argued on X that ETH’s weakness reflected a reduction in leverage rather than a deterioration in fundamentals. He pointed to stablecoin liquidation, tokenized assets and AI-related transactions as long-term demand drivers for the network.
Bit Digital’s move stands out because most digital asset treasury companies have reduced or paused their cryptocurrency accumulation plans in recent months. Falling cryptocurrency prices and growing discounts between their share prices and underlying cryptocurrency holdings have pushed several companies to conserve cash, reduce purchases, or even sell assets to pay off debt.
The New York-based company pivoted to an Ethereum-focused treasury strategy from its bitcoin mining roots last year. The company now positions itself as a “Strategic Asset Company” focused on ETH accumulation, AI infrastructure, and acquisitions.
The latest purchase brought the company’s treasury holdings to approximately 158,462 ETH, worth approximately $313 million at current prices, with some of its ETH staked directly and another portion deployed through liquid staking products to maintain flexibility.
The company also owns a majority stake in high-performance computing company WhiteFiber (WYFI), closely linked to the development of AI infrastructure.
