Bit Digital, Inc. Announces Commencement of Ethereum Staking Operations, Partnership with Blockdaemon

NEW YORK, December 22, 2022 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Company”), a digital asset mining company headquartered in New Yorkis pleased to announce that it has officially started Ethereum staking operations. Bit Digital intends to delegate, or stake, its ETH assets to a Ethereum validator node to help secure and strengthen the blockchain network. Stakeholders are compensated for this engagement in the form of a native network token reward.

This marks an expansion of the core of Bit Digital bitcoins mining to also validate transactions on the Ethereum blockchain. While the Company remains optimistic about bitcoinsand supporting the bitcoins blockchain, he expects to derive revenue from the Ethereum network via validator rewards.

The company’s staking operations are bolstered by a new partnership with Blockdaemon, the leading institutional-grade blockchain infrastructure company for node management and staking. Following a mechanism similar to the traditional Ethereum staking, Bit Digital will also participate in liquid staking via Portara, the liquid staking protocol developed by Blockdaemon and StakeWise and the first of its kind suitable for institutions. Liquid staking enables participants to 1) achieve greater capital efficiency using their staking ETH as collateral and 2) get out of staked positions as soon as possible by trading their stakes ETH tokens on the secondary market.

Unlike other liquid staking solutions, Portara’s main differentiator is that it ensures that users can only interact with verified counterparties. As a result, several regulated institutions that were previously unable to participate in liquid staking have now joined Portara and are actively participating in liquid staking.

From December 20the Company had 7,904 ETH and 2,004 sETH-h with a combined value of approximately $12.1 million. 2,164 ETH have been actively staked from that date, using either native staking protocols or liquid staking protocols. The Company intends to continue to accumulate Ethereum and bring into play almost all of its ETH positioning over time.

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Brian BalletCEO of Bit Digital, commented, “We are excited to grow from our core bitcoins the mining company to validate the transactions on the Ethereum blockchain. This diversification into another premier digital asset ecosystem is intended to create a new, predictable and recurring stream of digital rewards. To be clear, we will continue to invest in our mining operations and grow them opportunistically. Together we believe bitcoins mining and ETH staking are complementary lines of business that will enhance our overall margin and return profiles. This is an exciting development for Bit Digital, and we believe it will maximize value for all stakeholders.”

Chief Strategy Officer of Bit Digital, sam taberadded: “We are extremely optimistic about the Ethereum network. Following the network’s transition to a Proof-of-Stake consensus mechanism, we anticipate ETH will exhibit deflationary properties over time as net emissions are greatly reduced and ETH– denominated fees are burned. The idea that the transition will reduce grid energy consumption by 99% is also extremely compelling to us given our focus on sustainability. Ethereum serves as the foundation for the smart contract economy and DeFi in general, and we are excited to increase our exposure to the network and support another leading blockchain.”

CEO and Founder of Blockdaemon Constantin Richter shared that “Blockdaemon is proud to partner with Bit Digital and provide them with the best institutional-grade infrastructure for their new strategic point-of-sale holdings. This new partnership gives Bit Digital full access to the suite of institutional staking from Blockdaemon allowing them to increase their earned rewards from their crypto assets. Blockdaemon was designed from the ground up to provide institutions with products and services to help them scale and build blockchain-based businesses.”

About Bit Digital

Bit Digital, Inc. is a bitcoins mining company headquartered in New York City. Our mining operations are located at North America. For more information, please contact [email protected] or visit our website at www.bit-digital.com.

About Blockdaemon

Blockdaemon is the leading independent blockchain node infrastructure for staking, scaling, and deploying nodes with institutional-grade security and oversight. Supporting over 60 leading blockchain networks in the cloud and on bare metal servers worldwide, Blockdaemon is used by exchanges, custodians, crypto platforms, financial institutions and developers to connect business actors to blockchains. We power the blockchain economy by simplifying the node deployment process and building scalable enterprise blockchain solutions through APIs, high-availability clusters, automatic decentralization, and automatic node repair. For more information, please visit https://blockdaemon.com/. Press inquiries can be directed to [email protected]

Notice to Investors

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 3.D of our most recent Annual Report on Form 20-F for the financial year ended. December 31, 2021. If a material risk were to arise, our business, financial condition or results of operations would likely be adversely affected. In this case, the value of our securities could fall and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks not currently known to us or that we currently deem to be immaterial may also adversely affect our business operations. Additionally, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to predict future results. Future changes to the network-wide mining difficulty rate or bitcoins the hash rate can also significantly affect the future performance of Bit Digital’s production of bitcoins. Actual operating results will vary based on many factors, including network difficulty rate, total network hash rate, operations of our facilities, status of our miners and other factors. See “Safe Harbor Statement” below.

Safe Harbor Statement

This press release may contain certain “forward-looking statements” relating to the business of Bit Digital, Inc. and its subsidiaries. All statements, other than statements of historical fact included herein, are “forward-looking statements”. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes”, “expects” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and such expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at the address http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Except as required by securities laws, the Company undertakes no obligation to update these forward-looking statements.

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SOURCEBit Digital, Inc.