Bit Digital Inc. (NASDAQ: BTBT), a digital asset firm with a market capitalization of $488 million, announced Wednesday a major strategic shift as it plans to exit Bitcoin mining and fully transition into an Ethereum staking and treasury-focused company.

The firm confirmed in a press release that it has initiated a process of strategic alternatives concerning its Bitcoin mining practice a process that may lead to sale or total wind-down of the practice.

The company stated that all profits generated via selling any of its Bitcoin-based assets would be reallocated into supporting the Ethereum (ETH) staking projects.

ETH Staking Strategy Gains Traction Fast

Bit Digital plans to gradually turn its BTC holdings into ETH too, indicating it is deeply invested in the proof-of-stake future of Ethereum. Since 2022, the company has been actively developing staking infrastructure, after Ethereum made the landmark Merge update that transitioned the network to a proof-of-stake chain from proof-of-work.

It enables ETH owners to generate yearly yields usually in the region of 4% and 6.5% by assisting in securing the network. On March 31, Bit Digital held 417.6 BTC (about 34.5 million dollars) and 24,434.2 ETH (about 44.6 million dollars).

Bit Digital Shifts From Bitcoin Mining to Ethereum Staking

Though the company did not specify a timeline, it stated that the conversion system of Bitcoins to Ether will be gradual. The announcement was received with a mixed reaction in the market despite the long term strategic vision.

The news resulted in a subsequent 4% or more decline in Bit Digital shares, according to the concerns of investors in the company leaving Bitcoin, the largest cryptocurrency in the globe in terms of market value. Ethereum, in contrast, is ranked second with an almost 299 billion dollar market capitalization.