As the cryptocurrency landscape evolves, Bit Digital has made a notable investment, purchasing an additional $20 million in Ethereum. This move comes at a time when other investors are reevaluating their positions in the market, with some, like Bankless co-founder David Hoffman, opting to exit their Ethereum holdings. Hoffman recently sold his last remaining ETH, citing that the investment case for the cryptocurrency had largely played out, highlighting the contrasting strategies within the crypto community.
On May 11, Bit Digital acquired 8,568 ETH at an average price of $2,334 per token, increasing its total holdings to approximately 158,462 ETH. The Nasdaq-listed firm has articulated that this acquisition is part of a broader strategy aimed at enhancing its net asset value per share through the accumulation of Ethereum, alongside investments in AI infrastructure and strategic acquisitions.
A Company Building Around Ethereum
CEO Sam Tabar emphasized that this strategic purchase not only bolsters their Ethereum treasury but also helps in reducing the company’s average purchase price. Bit Digital’s operations are multifaceted, focusing on Ethereum treasury management, AI and high-performance computing infrastructure, and strategic acquisitions through its subsidiary, WhiteFiber, which trades on Nasdaq under the ticker WYFI.
This recent acquisition has positioned Bit Digital ahead of Coinbase Global, which has an estimated 151,175 ETH, making Bit Digital the fourth-largest public corporate holder of Ether, according to data from CoinGecko.
Other Firms Are Piling In Too
Bit Digital is not navigating these waters alone. Other firms are also ramping up their Ethereum holdings. Bitmine Immersion Technologies recently made its largest ETH purchase of the year, acquiring 111,942 Ether. Chairman Tom Lee expressed confidence in Ethereum’s potential, suggesting that the asset stands to benefit from a crypto supercycle driven by advancements in tokenization and AI-powered agents.
As per CoinGecko data, Bitmine Immersion currently leads as the largest public Ethereum treasury holder, boasting more than 5 million ETH in its portfolio.
Interestingly, this buying frenzy comes at a time when Ethereum’s price is fluctuating well below its recent highs. At the time of reporting, ETH was trading around $2,013, reflecting a 30% decline year-to-date and nearly 60% down from its August 2025 peak near $4,946.
Price Lags While Network Activity Holds Steady
Despite the price struggles, Standard Chartered has released a report indicating a disconnect between Ethereum’s on-chain metrics and its market value. The bank observed that transaction activity and total value locked on the network remain near record levels, suggesting sustained interest and usage, even as token values dip.
Geoff Kendrick, the bank’s global head of digital assets research, maintained a bullish outlook with a price target of $4,000 for ETH by the end of 2026 and a staggering $40,000 by 2030. He attributed this potential growth to increasing stablecoin usage and tokenization activities on the Ethereum network, which could bridge the gap between network activity and token prices.
While Hoffman acknowledges that Ethereum’s ecosystem may continue to expand through stablecoins and layer-2 solutions, he expresses concern that a limited portion of this growth will directly benefit ETH holders. As the crypto landscape continues to shift, the strategies of companies like Bit Digital reflect a commitment to harnessing the potential of Ethereum amid varying market sentiments.
