Bit Digital, Inc. announces the start of Ethereum Staking operations, a partnership with Blockdaemon | Daily News Byte

Bit Digital, Inc.  announces the start of Ethereum Staking operations, a partnership with Blockdaemon

 | Daily News Byte

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NEW YORK, December 22, 2022 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT ) (“Bit Digital” or the “Company”), a digital asset mining company headquartered in New York, is pleased to announce that it has officially launched Ethereum braking operations. Bit Digital intends to delegate, or invest its ETH property on an Ethereum a validator node that helps secure and strengthen the blockchain network. Participants are compensated for this commitment in the form of a native network token reward.

(PRNewsfoto/Bit Digital, Inc.)

This marks an extension of Bit Digital’s core bitcoin mining operations to also validate transactions on Ethereum blockchain. While the company remains bullish bitcoinand supportive bitcoin blockchain, expects to generate revenue of Ethereum network via validator rewards.

The investment firm’s operations have been enhanced by a new partnership with Blockdaemon, a leading institutional-grade blockchain infrastructure company for node management and investment. Following a similar mechanism as the traditional one Ethereum staking, Bit Digital will also participate in liquid staking via Portara, a liquid staking protocol developed by Blockdaemon and StakeVise and the first of its kind tailored for institutions. Liquid investment allows participants to 1) achieve greater capital efficiency by using their stake ETH as collateral and 2) withdraw from invested positions earlier than originally possible by trading your stakes ETH tokens on the secondary market.

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

On December 20, the Company had 7,904 ETH and 2,004 sETH-h with a total value of approximately $12.1 million. 2,164 ETH have been actively invested since that date, using either native or liquid investment protocols. The company intends to continue with the accumulation Ethereum and invest essentially everything ETH position over time.

Brian Bullett, CEO of Bit Digital, commented: “We are excited to expand from our core bitcoin mining job in validating transactions on Ethereum blockchain. This diversification into another ecosystem of blue-chip digital assets aims to create a new, predictable and recurring stream of digital rewards. To be clear, we will continue to invest and opportunistically expand our mining operations. Together, we believe bitcoin mining and ETH investment are complementary business lines that will improve our overall margin and return profiles. It’s an exciting development for Bit Digital and one that we believe will ultimately maximize value for all stakeholders.”

Bit Digital’s chief strategy officer, Sam Tabar, added: “We are extremely bullish on the issue Ethereum networks. We expect that after the transition of the network to the Proof-of-Stake consensus mechanism ETH will exhibit deflationary properties over time as net emissions are significantly 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 more broadly, and we’re excited to increase our exposure to the network and support another leading blockchain.

Blockdaemon CEO and Founder Konstantin Richter said, “Blockdaemon is proud to partner with Bit Digital and provide them with the best institutional-grade infrastructure for their new strategic PoS holdings. This new partnership gives Bit Digital full access to Blockdaemon’s suite of institutional investment solutions allowing them to grow their earned rewards from their crypto properties. Blockdaemon was built from the ground up to provide institutions with products and services to enable them to scale and build blockchain-based businesses.”

About Bit Digital

Bit Digital, Inc. is a bitcoin a mining company based in New York. Our mining operations are located in North America. For additional 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 investing, scaling and deploying nodes with institutional-grade security and oversight. Supporting 60+ state-of-the-art cloud and bare-bones blockchain networks worldwide, Blockdaemon is used by exchanges, custodians, crypto platforms, financial institutions and developers to connect commercial stakeholders with blockchains. We power the blockchain economy by simplifying the node deployment process and creating scalable enterprise blockchain solutions through APIs, high-availability clusters, automatic decentralization, and automatic node healing. For more information, visit https://blockdaemon.com/. Press inquiries can be directed to [email protected].

Notice for 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 fiscal year ended December 31 2021. If any material risk were to occur, our business, financial condition or results of operations would likely be adversely affected. In that event, the value of our securities could decline and you could lose some or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks that we are not currently aware of or that we currently consider immaterial may also threaten our business. In addition, 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 network-wide mining difficulty changes or bitcoin The hash rate can also significantly affect the future performance of Bit Digital’s production bitcoin. Actual operating results will vary depending on many factors, including network difficulty rate, overall network hash rate, operation 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 Bit Digital, Inc.’s business. 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, which involve 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 these 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 as a result of a number of factors, including those discussed in the Company’s periodic reports filed with the Securities and Exchange Commission and available on its website at http: / /vvv.sec.gov. Any 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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SOURCE Bit Digital, Inc.

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