Former Bitcoin mining company Bit Digital saw a significant drop this week, with its stock price falling nearly 19% in five days, closing at $1.99 on Friday (June 27), down 15% in just 24 hours.
This plunge followed a major announcement from the company, including a $150 million public offering and a strategic shift towards Ethereum staking. On Thursday (June 26), the company announced plans to issue 75 million common shares, aiming to raise $150 million.
Bit Digital plans to issue 75 million common shares at a price of $2 per share. The proceeds will be used to purchase Ethereum (ETH), doubling down on its previous decision to focus on Ethereum.
After the announcement, the company's stock price dropped to a low of $1.86, before slightly rebounding in after-hours trading.
This news came shortly after the company decided to abandon Bitcoin in favor of Ethereum earlier this week. On Wednesday (June 25), the company revealed it would transition to a "pure Ethereum staking and finance company," focusing on increasing its ETH holdings.
The company stated it has accumulated ETH for its financial reserves and launched its staking infrastructure in 2022. It plans to liquidate its Bitcoin holdings to purchase more ETH.
As of March 31, Bit Digital held 24,434 ETH and 417 BTC, valued at approximately $44.6 million and $34.5 million, respectively.
When it converts all its BTC to ETH, the company will hold about 42,000 ETH, worth approximately $103 million at current market prices.
Investors reacted poorly to this shift. Bit Digital's stock price fell nearly 4% following the announcement of the ETH transition on Wednesday.
Throughout the week, the company's stock price dropped nearly 19%, from a high of $2.40 at the beginning of the week to a low of $1.86 on Friday. Despite the market's reaction, the company shows no signs of halting its transition to ETH.
Bit Digital was previously the 12th largest Bitcoin mining company by market capitalization. However, since its pivot to ETH, CompaniesMarketCap shows its ranking has dropped to 13th. Data indicates that its stock price has fallen over 40% this year.
Cointelegraph has reached out to Bit Digital for comment but has not received a response as of publication time.
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