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Bit Digital, a computing infrastructure firm long associated with Bitcoin mining, is shifting gears and transitioning to Ethereum. The company has begun offloading Bitcoin reserves and significantly increasing its exposure to Ethereum. 

However, according to additional equity financing plans filed with the US Securities and Exchange Commission (SEC), it’s clear that Bit Digital’s pivot to ETH is just beginning. The timing could be more better, as Ethereum is currently gaining momentum in both price and institutional support.

SEC Filing Reveals Ongoing ETH Accumulation Plan

Bit Digital’s transition to Ethereum began in earnest earlier this month. On July 8, Bit Digital sold 280 BTC worth roughly $172 million to acquire over 100,600 ETH. That initial purchase was followed by an additional 19,683 ETH on July 18, bringing the company’s Ethereum holdings to approximately 120,306 ETH. Interestingly, these purchases have now placed Bit Digital among the top ten publicly known corporate holders of Ethereum.

The company didn’t keep quiet about its reasoning. In a statement posted to the social media platform X, Bit Digital explained its strategy shift is based on broader macroeconomic trends: “Why Ethereum? Why now? Society is entering a new monetary era.” The post highlighted volatile interest rates, inflation risks, and diminishing faith in fiat currency as key motivations for the switch to Ethereum. More importantly, it described Ethereum as offering both capital growth and native yield through staking, advantages that outshine traditional treasury strategies and even surpass Bitcoin’s use case as a store of value.

According to a filing submitted to the SEC on July 25, the company is seeking shareholder approval to increase its authorized share capital from 340 million to 1 billion ordinary shares. The proposed increase would raise total share capital from $3.5 million to $10.1 million while leaving preference shares unchanged. 

In its SEC filing, Bit Digital makes it clear that the move is aimed at securing additional equity financing soon, specifically to support its growth plans centered around Ethereum purchases. A shareholder vote to approve the proposal is set for September 10, 2025. 

Ethereum Outperforming Bitcoin

Interestingly, Ethereum’s price action has picked up notably since Bit Digital initiated its ETH strategy. ETH has surged by about 51% since the beginning of the month, and the ETH/BTC trading pair is up about 35%, clear signs that the market may be rotating toward Ethereum. This trend is further reinforced by continued inflows into Spot Ethereum ETFs, which have now seen 16 consecutive days of positive net flows.

According to on-chain analytics platform Sentora (formerly IntoTheBlock), between $7.5 billion and $8 billion has flowed into US-listed ETH ETFs since July 2. This wave of institutional capital has helped push aggregate assets under management (AUM) well beyond initial projections, turning once-skeptical observers into believers.

Image From X: Sentora

Ethereum’s recent performance mirrors this inflow trend, as it is now trading at its highest levels this year. Ethereum began the week with gradual gains, dipped midweek, and rebounded with conviction. As of now, ETH is trading around $3,775, up roughly by 5% in the past seven days. 

Featured image from Pexels, chart from TradingView

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The U.S. Department of Housing and Urban Development (HUD) is reportedly mulling over the use of blockchain technology and stablecoins.

ProPublica, citing a meeting recording, “three officials familiar with the matter” and other reviewed materials, reports that the executive department is considering using blockchain technology to track HUD grants.

Irving Dennis, HUD’s principal deputy chief financial officer, has reportedly been driving the blockchain conversation, according to one unnamed official at the department, though Dennis denied that idea to ProPublica.

Dennis previously worked as a partner at the accounting giant EY, which reportedly sent an executive to discuss the blockchain idea with HUD officials earlier this year. EY confirmed that discussions took place, according to ProPublica.

HUD has also reportedly explored the use of stablecoins. The blockchain and stablecoin discussions have generated some concern at the executive department.

Said one HUD official to ProPublica,

“I don’t see any way this will help anything. I see a lot of ways this could hurt.”

Elon Musk, who heads President Donald Trump’s new Department of Government Efficiency (DOGE), has reportedly looked into leveraging blockchain technology to slash government expenses, monitor federal outlays, shield US data against bad actors, process payments and manage properties.

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New data from the market intelligence firm IntoTheBlock reveals that the long-term growth of an artificial intelligence (AI)-focused altcoin is on track.

In a new thread on the social media platform X, IntoTheBlock says the numbers show that AI project Kaito (KAITO) – which had its highly anticipated token launch earlier this year – is primed for long-term growth despite users pulling profits from its initial airdrop.

“KAITO was among the most anticipated token launches this year, but is the excitement holding up? Currently, about 41,800 addresses hold a balance, many established during the initial airdrop. While over 90,000 addresses were created in a single day, around 55% emptied out immediately, likely capturing airdrop profits.

Even so, momentum remains solid: on average, 1,800 new addresses are added daily, and the adoption rate exceeds 30%. This steady influx of users suggests that KAITO’s long-term growth story is still unfolding.”

Kaito, an information finance (InfoFi) protocol, aims to solve the issue of fragmentation within the crypto space by using AI. Fragmentation happens within the crypto world when markets become increasingly divided by different blockchains, leading to separate sets of standards and a lack of interoperability.

“By indexing thousands of sources – across social media, governance forums, research, news, podcasts, conference transcripts, and more – and combining this with proprietary search algorithms, semantic LLM (large language model) capabilities, and real-time analytics, Kaito Pro streamlines access to high-quality, actionable insights in the crypto space.”

KAITO is trading for $1.64 at time of writing, a 1.7% increase during the last 24 hours.

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The following is a guest post from Steven Pu, Co-founder of Taraxa.

There’s no question about it, President Trump’s inauguration is a watershed moment for American crypto innovators. In just little over a week, we’ve seen a rapid series of crypto-friendly initiatives helmed by unambiguously pro-crypto leadership.

These initiatives are in stark contrast to the irrational persecutory stance taken by regulators of the previous administration. Whilst speculation stirs around geoeconomic outcomes, a transformed landscape will more importantly liberate previously stifled US-based developers. America is back on track to reclaim leadership in crypto. 

Persecutory Regulators Drained US of Crypto Talent 

Crypto is a fast-growing industry in which America can and must reclaim leadership. Since 2015, the crypto market has grown 107.7% annually, from $5 billion to $3.68 trillion –  in spite of unfriendly regulatory environments in every major economy worldwide. Much of this global growth was driven by rapid technical innovation, predominantly emanating from the United States, positioning the American market to capture the economic upside. 

But persecutory regulators have heaved talent out of America with great force. The US had 38% of the world’s crypto engineering talent in 2015, but dropped to just just half that at 19% by 2024. In a market that’s doubling every year, and home to the vast majority of the infrastructural technical innovations, this has been a massive brain drain. Given crypto’s decentralized and digital nature, talent is highly mobile, and US regulators in the past have given them ample reasons to leave. 

Regulatory Failure on a Massive Scale  

Prior to 2025, regulators sought to stifle American crypto innovation and economic opportunity using whatever means necessary. Regulators were not only busy persecuting compliant actors such as Coinbase, Kraken, and Uniswap, they also found plenty of time to fabricate evidence to persecute startups like DEBT Box. In many such cases, regulators even used de-banking as leverage in its irrational crusade to destroy American crypto companies. 

But American consumers gained little from such regulatory zealotry, since the regulators failed to protect consumers from the most catastrophic crypto frauds in history. In 2022, FTX lost over $8 billion of user deposits, while Terra Luna vaporized over $40 billion of market valuation, causing a cascade of failures in companies such as BlockFi, Genesis, Voyager and Celsius -to name just a few. In every single case, regulators utterly failed to note any wrongdoing altogether or noted far too late. 

There were no winners under this hostile and incompetent regulatory regime. Consumers lost, innovators lost, and America lost precious time to capture and foster this new and rapidly growing sector. 

Hope is on the Horizon 

American builders are resilient. Despite having an actively hostile regulatory environment, America is leading the crypto industry on many fronts. Most of the key infrastructure powering the crypto industry, including their precursor technologies in cryptography and distributed computing, were invented right here in America. 

We can see plenty of hope from just the first week of the new administration- an SEC subcommittee is set to reform crypto rulemaking under Hester Pierce; and a Senate subcommittee on digital assets will be formed under Cynthia Lumis. We’re seeing positive changes in both regulatory and  legislative tracks. It’s a great beginning towards the short and long-term sustainability of a healthy American crypto industry. 

Undoubtedly, there’s still a great deal more to do. Much of the financial legislative and regulatory infrastructure still remains fundamentally incompatible with the crypto’s decentralized nature. The Infrastructure Investment and Jobs Act of 2021, for example, expanded the definition of a “broker” to potentially include crypto wallets and even network miners and validators, making it impossible for anyone in crypto to stay in compliance. 

We nevertheless remain very hopeful.  The new administration has strongly and swiftly signaled its intent to improve the regulatory environment, making it more transparent, rational, and pro-growth. Talks of a Bitcoin profit frenzy, or even geoeconomic power shifts, may energize communal discussion, but what’s really at the crux of importance is the potential reversal of blockchain brain drain.

Restored freedom to innovate in America – that’s what’s on the line. There is now every chance that it will materialise in the crypto realm, sending America back on its way to reclaim its position at the helm of transformation.

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The current bearish phase of the crypto market has continued, with Bitcoin, the largest digital asset struggling to reclaim key levels such as the pivotal $100,000 mark. While the community anticipates another rally for BTC, analysts point to areas that are crucial and may spur an upsurge for the asset to new highs.

Key Level Stands Between Bitcoin’s Next Rally

After reaching a new all-time high last month, Bitcoin has been faced with bearish pressure, which has hindered the asset from revisiting the level. However, market expert and investor Mags highlights that a crucial barrier point that traders are keeping a careful eye on will determine whether BTC will reclaim its current peak or rise to fresh all-time highs.

Specifically, the critical resistance level pointed out by the market expert is the $99,500 range. Even with the recent slight bullish momentum, Bitcoin needs to recover and stay above the key level to confirm a breakthrough and sustain an upward movement.

Delving into BTC’s recent price action, Mags stated that its price has been maintaining sideways movements for the past few days. It is also trading below a mid-range as seen in the chart shared by the analyst.

According to Mags, BTC has already been tested with a fast wick at the low range. On the other hand, the expert anticipates a proper retest prior to the next top move for Bitcoin. As a result, he believes that a price flip of $99,500 is vital for BTC upswing to a higher level.

While Mags looks forward to a BTC rally, he noted that sideways movements are likely to last a little longer before the subsequent move up, which should be the last push for the asset. With the current bearish pressure, BTC’s failure to break through and hold this level could lead to an extended consolidation or notable pullbacks in the short term.

Looking at Mags’ chart, the anticipated breakout is capable of triggering a massive bullish wave to as high as nearly the $130,000 mark. A move to the range will confirm its potential to target higher price levels before the ongoing bull market cycle comes to an end.

BTC’s Market Top Could Be Happening Anytime Soon

Mags hints at this ongoing cycle coming to an end soon and BTC achieving its market park in the upcoming months. Bitcoin’s peak has historically occurred about 233 to 330 days after surpassing its previous all-time high.

Considering past cycles, BTC seems capable of experiencing growth despite waning conditions. Furthermore, the expert has pinpointed Bitcoin’s market top between the third and fourth quarters of this year.

His chart shows that BTC’s may peak at around $350,000 in the coming months. The asset recently underwent a price breakout, which may have set the stage for a path to a new all-time high and market top.

Featured image from Unsplash, chart from Tradingview.com