Bit Digital's $20M ETH Purchase Goes Underwater as Ether Drops 15%
Bit Digital purchased 8,568 ETH for $20 million on May 11 at an average price of $2,334, its first ether acquisition since October 2025. Since then, ether fell below $2,000, marking a roughly 15% decline and leaving the firm with an unrealized loss of about $3 million. CEO Sam Tabar defended the timing, stating that market conditions had aligned with the company's thesis, and cited stablecoin settlement, tokenized assets, and AI-related transactions as long-term demand drivers. This move contrasts with most digital asset treasury firms, which have scaled back or halted crypto accumulation amid falling prices and widening stock-to-NAV discounts. Bit Digital, originally a bitcoin miner, pivoted to an Ethereum-focused treasury strategy last year and now holds approximately 158,462 ETH, worth about $313 million. The firm also owns a controlling stake in AI infrastructure company WhiteFiber.
Key facts
- Bit Digital bought 8,568 ETH for $20M on May 11 at avg $2,334.
- ETH dropped 15% since purchase, resulting in ~$3M unrealized loss.
- CEO Tabar cited reset market conditions and long-term demand drivers.
- Most crypto treasury firms have scaled back buying amid market weakness.
- Bit Digital now holds 158,462 ETH and controls AI firm WhiteFiber.