Bit Digital Buys $20 Million in Ethereum, Raising Holdings to 158,461.75 ETH
According to the new disclosure, Bit Digital bought 8,568 ETH at an average $2,334 on May 11, and the position later showed an unrealized loss after ETH fell below $2,000.
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Fact Check
The official Bit Digital press release (PR Newswire) confirms the purchase of approximately 8,568 ETH for $20 million on May 11, matching the claim's average price of $2,334. CoinDesk and CoinLaw independently confirm the 158,461 ETH total holdings and the unrealized loss as ETH fell below $2,000.
Summary
Bit Digital said it bought 8,568 ETH on May 11 at an average price of $2,334, for about $20 million. The purchase raised the company’s Ethereum treasury to about 158,462 ETH, valued at roughly $313 million at current prices. The new disclosure also states that ETH later fell below $2,000, leaving the newly purchased position with an unrealized loss of about $3 million.
Terms & Concepts
- Ethereum treasury: A company-held reserve of Ethereum used as part of its balance sheet or capital management strategy.
- ETH: The native cryptocurrency of Ethereum, a blockchain used for smart contracts and decentralized applications.
- unrealized loss: A paper loss on an asset that has declined in value but has not been sold, so the loss has not been formally realized.