Despite the decline in BTC mining output, Bit Digital increased its BTC and ETH holdings through diversification in both assets.
Strategic Diversification Key to Bit Digital Crypto Holdings
Bit Digital, a bitcoin mining firm produced 32.4 BTC in Dec. 2024, a 27.8% drop from the previous month. This is according to the company’s production update published on Wednesday, Jan. 8.
The company’s custodial portfolio modifications, ongoing mining asset redeployments to new sites, and the retirement of older mining equipment were the primary causes of the decline. The active hash rate for Bit Digital was approximately 1.8 EH/s.
As of Dec. 31, the company held 742.1 BTC and 27,623.9 ETH with fair values of approximately $69.3 million and $92.1 million, respectively for a combined value of $161.4 million in digital assets.
The update showed that the company paid $3.2 million for 941 S21 mining machines and sold 4,506 S19 mining machines for about $836,600. Out of the 27,623.9 ETH it owns, the company has 21,568 ETH actively staked in native staking protocols with a blended annual percentage yield (APY) of almost 3.3%. This brought the company’s total staking rewards to about 60.6 ETH in Dec. 2024.
Despite the drop in its BTC mining numbers, it seems the company’s strategic diversification approach to bitcoin mining and ethereum staking seems to be yielding results. The company exchanges a portion of its bitcoin mining rewards for ethereum, stakes ETH to earn yield, and uses the yield to reinvest into bitcoin miners, resulting in a perpetual revenue flywheel.
