Bit Digital Partnership with Blockdaemon
Bit Digital, a New York-based digital asset mining company, announced that it has officially begun Ethereum staking operations in partnership with Blockdaemon.
Bit Digital which sustainably powers leading blockchains, announced a partnership with Blockdaemon 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.
Bit Digital’s core bitcoin mining operation has expanded to include transaction validation on the Ethereum blockchain. While the company is still bullish on bitcoin and supports the bitcoin blockchain, it expects to earn money from the Ethereum network through validator rewards.
A new partnership with Blockdaemon, the leading institutional-grade blockchain infrastructure company for node management and staking, strengthens the Company’s staking operations. Bit Digital will participate in liquid staking via Portara. The liquid staking protocol developed by Blockdaemon and StakeWise and the first of its kind tailored to institutions, using a mechanism similar to traditional Ethereum staking.
Participants can use liquid staking
- achieve greater capital efficiency by using their staked ETH as collateral
- withdraw from staked positions earlier than would otherwise be possible by trading their staked ETH tokens on the secondary market.
Portara’s key differentiator from other liquid staking solutions is that it ensures users can only interact with verified counterparties. As a result, several regulated institutions that were previously unable to participate in liquid staking. Now joined Portara and are actively participating in liquid staking.
As of December 20, the Company had 7,904 ETH and 2,004 sETH-h with a combined worth of approximately $12.1 million. 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.
Bryan Bullett, Bit Digital’s CEO, commented: “We are excited to expand from our core bitcoin mining business into validating transactions on the Ethereum blockchain. This diversification into another blue-chip digital asset ecosystem. Carries the goal of creating a new, predictable, and recurring stream of digital rewards. To be clear, we will continue to invest in and opportunistically expand our mining operations. Together, we believe bitcoin mining and ETH staking are complementary business lines that will enhance our overall margin and return profiles. It’s an exciting development for Bit Digital, and one that we ultimately believe will maximize value for all stakeholders.”
Bit Digital’s Chief Strategy Officer, Sam Tabar, added: “We are extremely bullish on the Ethereum network. Following the network’s transition to a Proof-of-Stake consensus mechanism. We expect ETH will exhibit deflationary properties over time as net issuance is substantially reduced and ETH-denominated fees are burned. The notion that the transition will decrease the network’s 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 broadly. We are excited to increase our exposure to the network and support yet another leading blockchain.”
Blockdaemon CEO and Founder Konstantin Richter shared that “Blockdaemon is proud to partner with Bit Digital and provide them with best-in-class institutional-grade infrastructure for their new strategic PoS holdings. This new partnership gives Bit Digital full access to Blockdaemon’s suite of institutional staking solutions. Allowing them to increase their earned rewards from their crypto holdings. 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 mining company headquartered in New York City. Our mining operations are located in North America.
Blockdaemon is the leading independent blockchain node infrastructure to stake, scale, and deploy nodes with institutional-grade security and monitoring. Supporting 60+ cutting-edge blockchain networks in the cloud and on bare metal servers globally. Blockdaemon, used by exchanges, custodians, crypto platforms, financial institutions and developers to connect commercial stakeholders to blockchains. We power the blockchain economy by simplifying the process of deploying nodes and creating scalable enterprise blockchain solutions via APIs, high availability clusters, auto-decentralization and auto-healing of nodes.