The capital funds will be allocated to capital expenditures, to buy new mining equipments and other potential acquisitions
Prominent bitcoin miner Bit Digital (BTBT) filed a description with the US Security and Exchange Commission (SEC) for selling up to $500 million in its equity from time to time offering which is also known as an ‘at the market’ (ATM) offering. The offerings of equity would include shares both ordinary and preferred shares which includes convertible preferred shares, warrants and other units of any such combination as per the filing detailed.
The company said that the proceedings would be used for several general corporate purposes that would include capital expenditures, buying of new mining equipment and other potential acquisitions and general capital for working. If Bit Digital sells ordinary shares and if it offers to sell about 181.8 million shares in total then H.C. Wainwright would be acting as the underwriter.
This being followed the prospectus is registration include shelf which means that there is no intention present to sell all the securities immediately that the securities are being registered. Bit Digital reduced its bitcoin mining rigs in North America from the Chinese subcontinent last year when China put a ban and swept out the whole crypto industry from the region. About 40% machines of the company have come online again in North America by 16th March.
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Rest of the miners which are awaiting for installation in the US are expected to get installed at the sites that are operated by company named Compute North and at some new facilities to be operated by Digihost and Blockfusion in New York upstate in 2022 according to the company filings.
Offering of the bitcoin miner Bit Digital comes shortly after when one of the largest publicly traded bitcoin miners firm, Riot Blockchain (RIOT) has filed a similar announcement of selling more than $500 million worth share in an ATM offering. Another crypto miner, Mawson Infrastructure, also announced the same month that it was looking to raise about $500 million in its equity offerings. Shares of Bit Digital were unchanged after hours but later have fallen about 58% this year when compared to the decline of bitcoin of 13%.
Source: https://www.thecoinrepublic.com/2022/04/22/how-much-bitcoin-miner-bit-digital-files-to-raise-in-equity/