Bit Digital, a Nasdaq-listed company formerly focused on Bitcoin mining, is making headlines after announcing plans to raise $67.3 million to expand its Ethereum treasury strategy. As Ethereum hovers just below the $3,000 mark, this bold institutional move is fueling speculation: are we on the verge of a new ETH rally?
Bit Digital’s Strategic Shift Toward Ethereum
Bit Digital has transitioned away from Bitcoin mining and is now doubling down on Ethereum. In a recent CNBC segment, CEO Sam Tabar explained the pivot:
This comes as the firm prepares a $67.3 million capital raise, filing an S-3 registration statement with the SEC. According to the document, the funds will be used to buy Ethereum and expand its ETH reserves. This is not an isolated move, it mirrors a broader trend of institutions adding Ether to their treasuries in anticipation of Ethereum-based financial infrastructure taking off.
Ethereum Price: Strong Momentum Builds
As Bit Digital shifts gears, Ethereum is showing clear signs of strength. The ETH/USD daily chart reveals a sharp uptrend since early July, with ETH currently testing the $3,000 resistance level. The support zone at $2,800 has held firm, while bullish volume continues to increase.
Source: Trading View
This momentum aligns with recent on-chain data, which shows heightened accumulation among wallets holding over 10,000 ETH, commonly associated with institutional players.
New ETH Rally Incoming?
The idea of a new ETH rally isn’t just market optimism. Here’s what’s fueling it:
- Institutional adoption: Bit Digital isn’t alone. BlackRock’s ETH ETF filing and Fidelity’s increasing ETH exposure point to growing institutional demand.
- Macro tailwinds: With inflation cooling and interest rate cuts expected by Q4 2025, risk assets like ETH could benefit.
- ETH’s deflationary model: With EIP-1559 in full effect, Ethereum continues to burn more ETH than it issues, especially during high network usage.
Ethereum vs. Bitcoin Narrative Flip?
While Bitcoin remains dominant, Ethereum’s evolving role as the infrastructure layer for DeFi, RWAs, and tokenized treasuries makes it an increasingly attractive alternative for investors. Bit Digital’s decision to abandon BTC mining entirely in favor of Ethereum sends a strong message: Ethereum’s future utility may outweigh Bitcoin’s digital gold narrative.
What’s Next for ETH Price?
If ETH breaks decisively above $3,000, analysts are eyeing $3,400 and $3,600 as the next resistance zones. However, should macro uncertainty persist or SEC delays impact the ETH ETF approvals, we could see short-term consolidation between $2,750–$3,000.
Final Thoughts: Could Bit Digital Spark a New ETH Rally?
With Ethereum showing solid fundamentals, rising institutional interest, and a deflationary mechanism in place, Bit Digital’s $67M move could be a catalyst. As one of the first publicly traded firms to fully embrace ETH for treasury allocation, Bit Digital might just be leading the charge into Ethereum’s next major bull cycle.
