Ethereum treasury company Bit Digital (BTBT) has made its first purchase of ether (ETH) since the crypto market peaked in October, but it is already underwater on its acquisition as crypto 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 represents an unrealized loss of around $3 million, having fallen more than 15% in recent weeks.
CEO Sam Tabar said “the timing reflects our view that market conditions have recovered to a level consistent with our thesis.” In March, he argued on X that ETH’s weakness reflected the unwinding of leverage rather than deteriorating fundamentals. He highlighted stablecoin settlement, tokenized assets, and AI-driven transactions as long-term demand drivers for the network.
Bit Digital’s move stands out as most digital asset treasury companies have scaled back or stopped their cryptocurrency accumulation plans in recent months. Falling cryptocurrency prices and increasing discounts between their stock prices and underlying crypto holdings have caused several companies to conserve cash, reduce purchases, or even sell assets to pay off debts.
The New York-based company has pivoted to an Ethereum-focused treasury strategy from its bitcoin. minor roots last year. The company is now positioning 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 a portion of its ETH staked directly and another portion deployed via liquid staking products to maintain flexibility.
The company also owns a majority stake in high-performance computing company WhiteFiber (WYFI), closely tied to the hot development of AI infrastructure.
