Bit Digital plans $100M convertible notes to boost Ethereum and Bitcoin holdings, strengthening corporate treasury and digital asset investment strategy.
Bit Digital announced a proposed public offering of $100 million in convertible senior notes due 2030. The offering depends on market conditions and other customary factors. The company will also give underwriters an option to buy back an additional $15 million for over-allotments for 30 days. The proceeds will be mostly used to purchase Ethereum, in line with the company’s continued digital asset management. Plus, there are some funds that aim to support general corporate purposes such as investments, acquisitions, and other opportunities for digital assets.
Offering Terms Highlight Flexibility and Investor Options
The notes will be senior and unsecured obligations of Bit Digital. They will mature on October 1, 2030, unless converted, redeemed, or repurchased earlier. Holders are entitled to convert the notes before the second trading day before maturity. Upon conversion, however, the company may pay in cash, ordinary shares, or a combination thereof at the discretion of the company. The rate of interest, initial conversion rate, etc., will be decided at the point of pricing.
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Joint lead book running managers for the offering are Barclays, Cantor, and B Riley Securities. The offering will be made under a shelf registration statement on the form of application S-3, declared effective by the SEC on June 20, 2025. This type of structure ensures compliance with the securities institutions of the US and allows for flexibility for both the company and its investors.
Bit Digital is planning to use the net proceeds primarily to acquire Ethereum to boost its digital asset treasury. Furthermore, some proceeds may be used for general corporate purposes, which may include potential acquisitions and investments in digital assets.
The company recently left the Bitcoin mining business. Instead, it now focuses only on Ethereum staking and treasury management. This shift aligns with its strategy to become a pure-play Ethereum company.
Bit Digital Shows Long-Term Commitment to Ethereum Holdings
The convertible notes offering helps to give space to the institutional investors while keeping the freedom in the use of capital. Analysts suggest the move could see Bit Digital significantly increase Ethereum holdings. Moreover, it puts the company in a position to leverage the opportunities that occur in the broader digital asset ecosystem. The offering comes on the heels of a growing interest in Ethereum as a strategic digital asset for corporate treasuries.
By adding more concrete Ethereum to the market, Bit Digital’s goal is for governments can improve liquidity, participation in governance, and predict the value of digital assets, making them more stable in the long run. It may also attract investors seeking to buy Ethereum through a regulated, publicly listed company. Furthermore, experts say this initiative shows confidence in Ethereum’s long-term value. Additionally, it demonstrates the company’s commitment to blockchain-based investments.
This offering represents Bit Digital’s strategic course to the integration of digital assets within corporate treasury management. As a result, the company’s profile in the digital asset segment is reinforced and starting to prepare for the future of acquisitions and investments. The move highlights the growing role of Ethereum in the corporate digital assets strategy and the growth of companies.
With the convertible notes, Bit Digital has shown itself to be committed to responsible asset management, regulatory compliance, and long-term strategic growth. Overall, the offering is a significant move in the company’s journey towards becoming a prominent Ethereum-focused digital assets enterprise.