Bit Digital announced Monday it will offer $100 million in convertible senior notes to acquire additional ETH for its treasury. The Nasdaq‑listed company filed a preliminary prospectus with the Securities and Exchange Commission, with Barclays, Cantor, and B. Riley Securities serving as lead book‑running managers.
The offering includes an optional $15 million in additional notes. Net proceeds will primarily fund Ethereum purchases, though the company may also use capital for general corporate purposes, including potential investments, acquisitions, and other digital asset opportunities.
Bit Digital transformed from a Bitcoin mining operator to a pure‑play Ethereum staking and treasury company in June. The firm, founded in 2015, has been accumulating and staking ETH since 2022. It currently holds more than 120,000 Ethereum tokens, making it the seventh‑largest Ethereum treasury company tracked by StrategicEtherReserve.
If the raise succeeds, Bit Digital could purchase approximately 23,714 additional tokens at current prices. This would elevate the company to sixth place among Ethereum treasury holders, surpassing crypto exchange Coinbase in total holdings.
The company reported declining total revenue during the second quarter of this year. Bit Digital shares closed up 8.4 % on Monday but dropped 10 % in after‑hours trading following the announcement. The company maintains a market capitalization of around $950 million.
BitMine Immersion and SharpLink Gaming currently hold larger Ethereum positions than Bit Digital. The digital asset treasury strategy offers investors leveraged exposure to assets including BTC, ETH, and SOL without directly purchasing and storing the cryptocurrencies themselves.
Bit Digital's convertible note approach mirrors that of Strategy’s, the world's largest Bitcoin treasury company. Bit Digital has not acquired meaningful amounts of Ethereum since July, though it continues to stake its existing holdings to generate returns.