What to know:
- Ethereum treasury firm Bit Digital purchased 8,568 ETH for $20 million on May 11, its first ETH buy since October.
- Ether slid below $2,000 Thursday, declining roughly 15% since the purchase and putting the acquisition roughly $3 million underwater.
- Most digital asset treasuries scaled back or halted crypto accumulation over the past months amid turbulent crypto markets.
Bit Digital, a company that holds Ethereum (ETH), recently bought more of the cryptocurrency for the first time since prices peaked in October. However, the value of that purchase has already decreased as crypto prices are now falling.
On May 11th, the company purchased approximately 8,568 ether (ETH) for $20 million, with an average cost of $2,334 per token.
With Ethereum currently valued around $1,980, a recent purchase is now showing an unrealized loss of approximately $3 million, as its value has decreased by over 15% in the last few weeks.
According to CEO Sam Tabar, the current market situation aligns with the company’s original expectations. Earlier in March, he explained on X that the recent dip in ETH’s value was likely due to investors closing leveraged positions, not because of any fundamental problems with the network itself. He believes long-term growth will be fueled by things like stablecoin transactions, tokenized assets, and increasing activity related to artificial intelligence.
Bit Digital is unusual because most companies holding digital assets have recently reduced or stopped their crypto purchases. Declining crypto values and the growing difference between their stock prices and the value of their crypto holdings have led many to prioritize saving money, decreasing purchases, or even selling assets to manage debt.
Last year, the New York company shifted its focus from mining Bitcoin to managing a treasury primarily invested in Ethereum. They now describe themselves as a ‘Strategic Asset Company’ concentrating on building up Ethereum holdings, developing AI infrastructure, and making strategic acquisitions.
The company recently bought more Ethereum, bringing its total holdings to around 158,462 ETH, which is currently worth approximately $313 million. They’ve staked some of this Ethereum directly and used liquid staking options for the rest, allowing them to maintain control over their assets.
The company is a major owner of WhiteFiber (WYFI), a company specializing in high-performance computing, which is currently in high demand due to the rapid growth of AI technology and infrastructure.
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2026-05-28 16:47