Bit Digital begins Ethereum staking operations, partners with Blockdaemon

Bit Digital has formally commenced Ethereum staking operations. Bit Digital intends to delegate, or stake, its ETH holdings to an Ethereum validator node to help secure and strengthen the blockchain network. Stakers are compensated for this commitment in the form of a reward of the native network token. This marks an expansion from Bit Digital’s core bitcoin mining operation to also validating transactions on the Ethereum blockchain. While the company remains bullish on bitcoin, and supporting the bitcoin blockchain, it expects to derive revenue from the Ethereum network via validator rewards. The company’s staking operations are enhanced by a new partnership with Blockdaemon, an institutional-grade blockchain infrastructure company for node management and staking. Bit Digital will also participate in liquid staking via Portara, the liquid staking protocol developed by Blockdaemon and StakeWise. Portara’s key differentiator is that it ensures that users can only interact with verified counterparties. As of December 20, the company had 7,904 ETH and 2,004 sETH-h with a combined worth of approximately $12.1M. 2,164 ETH were actively staked as of that date, using either native staking or liquid staking protocols. The company intends to continue accumulating Ethereum and stake substantially all of its ETH position over time.