Bit Digital bought $20 million ETH for first time since October before 15% plunge
The firm said it purchased 8,568 ether on May 11 at an average price of $2,334. Since then, ETH broke below $2,000, leaving the firm sitting at a $3 million unrealized loss.
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.
As ETH is currently trading near $1,980, the latest acquisition is already sitting on an unrealized loss of roughly $3 million, having gone down more than 15% over the past few weeks.
CEO Sam Tabar said the “timing reflects our view that market conditions had reset to a level consistent with our thesis.” In March, he argued on X that ETH’s weakness reflected leverage unwinding rather than deteriorating fundamentals. He pointed to stablecoin settlement, tokenized assets and AI-related transactions as long-term demand drivers for the network.
Bit Digital’s move stands out as most digital asset treasury firms have scaled back or stopped with their crypto accumulation plans over the past months. Falling crypto prices and widening discounts between their stock prices and underlying crypto holdings have pushed several firms to conserve cash, scale back buying or even sell assets to pay off debt.
