Ethereum News Today: Bit Digital's $100M Ethereum Bet Tests Market's Appetite for Crypto Risk

Bit Digital, Inc. (Nasdaq: BTBT) has announced a proposed $100 million registered public offering of convertible senior notes due 2030, with an additional $15 million over-allotment optionBit Digital Announces Proposed Offering of $100 Million Convertible Notes^[1]. The notes, to be issued as senior unsecured obligations, will mature on October 1, 2030, unless converted, redeemed, or repurchased earlier. Holders may convert the notes into cash, ordinary shares, or a combination of both, with terms to be finalized at pricing. The net proceeds will primarily fund Ethereum purchases and may be allocated to general corporate purposes, including digital asset investments and acquisitionsBit Digital Announces Proposed Offering of $100 Million Convertible Notes^[2].

Barclays, Cantor Fitzgerald, and B. Riley Securities are serving as joint lead book-running managers for the offeringBit Digital Announces Proposed Offering of $100 Million Convertible Notes^[3]. The transaction will utilize an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC), declared effective on June 20, 2025. Prospective investors can access the preliminary prospectus supplement and accompanying documents via the SEC’s website or directly from the underwritersBit Digital Announces Proposed Offering of $100 Million Convertible Notes^[4]. The company emphasized that the offering remains subject to market conditions and regulatory approvals, with no assurance of completionEthereum Treasury Bit Digital Proposes Raising $100 Million with Convertible Notes^[5].

Bit Digital, a publicly traded digital asset platform focused on Ethereum-native treasury and staking strategies, has operated one of the largest institutional Ethereum staking infrastructures since 2022Bit Digital Announces Proposed Offering of $100 Million Convertible Notes^[6]. The firm’s operations include validator management, institutional-grade custody, and protocol governance, aiming to provide scalable access to on-chain yield. This move aligns with broader industry trends of firms adopting digital asset treasury (DAT) strategies to offer leveraged exposure to cryptocurrencies like ETHEthereum Treasury Bit Digital Proposes Raising $100 Million with Convertible Notes^[7].

The offering reflects Bit Digital’s strategic pivot from Bitcoin mining to Ethereum-centric operations, a shift announced in June 2025Bit Digital Announces Proposed Offering of $100 Million Convertible Notes^[8]. The company reported a decline in Q2 2025 revenue, prompting a focus on Ethereum accumulation and staking. The $100 million raise positions Bit Digital to expand its ETH holdings, leveraging its existing infrastructure to capitalize on Ethereum’s post-merge market dynamics. Analysts note that such strategies are gaining traction as firms seek to optimize returns in a competitive digital asset landscapeEthereum Treasury Bit Digital Proposes Raising $100 Million with Convertible Notes^[9].

Market reactions to the announcement were mixed. While BTBT shares rose 8.4% intraday, they fell 10% in after-hours trading following the news, reflecting investor caution ahead of the offering’s finalization. With a market capitalization of approximately $950 million, Bit Digital’s move underscores the sector’s volatility and reliance on capital-raising efforts to sustain growthEthereum Treasury Bit Digital Proposes Raising $100 Million with Convertible Notes^[10].

The offering highlights the evolving role of convertible debt in the crypto sector, enabling firms to secure liquidity while aligning with long-term asset accumulation goals. By targeting Ethereum, Bit Digital aims to strengthen its position in a market where institutional participation is growing. However, risks remain, including regulatory scrutiny, market volatility, and execution uncertainties inherent to such offeringsBit Digital Announces Proposed Offering of $100 Million Convertible Notes^[11].