Bit Digital Raises $135M To Boost Ethereum Holdings

Bit Digital (Nasdaq: BTBT) has finalized terms for a $135 million offering in 4.00% convertible notes maturing in 2030, aiming to increase its Ethereum (ETH) holdings as part of a broader digital asset strategy. The notes will be senior unsecured obligations, maturing in October 2030, with interest payable semiannually. The deal is expected to close on October 2, pending standard closing conditions.

As per the official announcement, investors will be able to convert their notes into cash, Bit Digital shares, or a combination of both. The conversion rate is set at 240.3846 shares per $1,000 of principal, implying a premium of 30% above the company’s last closing price of $3.20. Bit Digital estimates it will net around $128.9 million in proceeds, or $143.3 million if underwriters exercise their full option to purchase an additional $15 million.

According to Bit Digital, the majority of funds will go toward acquiring Ethereum, with the remainder allocated to general corporate needs, including potential acquisitions or investments in digital assets. Barclays, Cantor, and B. Riley Securities are acting as joint lead book‑runners for the offering.

Debt becomes a crypto treasury weapon

Bit Digital’s move mirrors a broader trend among publicly traded crypto firms turning to convertible debt markets to scale their digital asset exposure. On August 4th, Coinbase announced a plan to raise $2 billion through convertible senior notes due in 2029 and 2032. Like Bit Digital, Coinbase indicated that funds could support acquisitions and product expansion.

Together, these raises highlight a growing convergence between capital markets and crypto balance sheets. Rather than liquidating assets or relying solely on operating income, firms are increasingly leveraging structured debt to deepen their digital asset strategies while retaining long‑term flexibility.