Bit Digital has announced plans to take its wholly-owned subsidiary WhiteFiber public, while winding down its Bitcoin mining operations in favor of Ethereum staking and treasury services.

Bit Digital is a publicly listed company that previously focused on a wide range of cryptocurrency and high-performance computing (HPC) services. Until now, the company has mined and accumulated 417.6 Bitcoin - valued at $34.5 million.

It has Bitcoin mining operations located in the US, Canada, and Iceland.

Now, however, the company plans to sell off its Bitcoin holdings and convert them to Ethereum (ETH) as it looks forward to becoming a pure-play Ethereum staking and treasury firm.

Staking is the process by which crypto holders lock up their coins on their respective blockchains (ETH on Ethereum, for example) and earn passive income in return.

In the cryptosphere, staking is a low-electricity alternative to typical mining operations. On Proof-of-Work (PoW) blockchains like Bitcoin, mining is the process by which new coins are produced, but it is also the way in which the blockchain is secured from potential hackers. The more mining power that is directed towards the blockchain, the more power would be required for a hacker to gain control of the chain.

On Proof-of-Stake (PoS) blockchains like Ethereum, no mining takes place. Instead, coin holders stake their coins on the blockchain to both secure the blockchain and produce new coins. The more coins that are staked, the greater the rewards and the security. For a hacker to gain control of the chain, they would need to have more coins than are already staked.

As of March 31, 2025, Bit Digital held 24,434.2 ETH, valued at $44.6 million. The company began accumulating ETH and operating Ethereum staking infrastructure in 2022.

Meanwhile, Bit Digital is set to take its wholly-owned HPC subsidiary, WhiteFiber, public, having submitted a draft S1-form registration statement to the Securities and Exchange Commission (SEC). The number of shares and their prospective price have not yet been determined. The decision will be subject to market conditions and the completion of the review process by the SEC.

It rebranded its HPC business as WhiteFiber in February.