Former Bitcoin mining company BIT Digital fell sharply this week, with its shares down nearly 19% over a five-day period and closing at $1.99 on Friday, down 15% in just 24 hours.
The company follows major company announcements, which include a $150 million public offering and a strategic hub for Ether Staking. Thursday, the company Announce 75 million common shares were issued publicly, 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 ether (eth), double the decision to transfer its previous decision to Ethereum-centric companies.
After the news, the company’s stock fell to $1.86 before recovering slightly in after-hours trading.
Bit digit pivot into ETH Staking and Tereasury Company
The news comes after the company’s decision to abandon Bitcoin earlier this week (BTC). Wednesday, the company Revealing it will transition “Pure Gaming Ethereum Accumulation and Finance Companies” focused on increasing their ETH holdings.
The company said it has accumulated fiscal reserves for ETH and started its storage infrastructure in 2022. It plans to liquidate its Bitcoin holdings to buy more ETH.
As of March 31, BIT Digital held 24,434 ETH and 417 BTC, worth approximately $44.6 million and $34.5 million.
When it converts all its BTC to ETH, the company will have about 42,000 ETH, worth about $103 million at the current market price.
Related: Bitcoin Mining Company Digit Reports Nearly 40% Revenue
Digit stocks fell 19% in five days
Investors reacted adversely to the shift. BIT Digital shares fell nearly 4% on Wednesday following the announcement of ETH Pivot.
The company’s shares fell nearly 19% throughout the week, from a high of $2.40 to $1.86 on Friday. Despite the reaction, the company showed no signs of blocking its entry into ETH.
According to market capitalization, BIT Digital is the 12th largest Bitcoin mining company. However, CompanyMarketCap thanks to its ETH Pivot show Falling to 13th place. The data also shows that its share price has fallen by more than 40% this year.
Cointelegraph commented with BIT Digital but received no response through the publication.
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