Bit Digital (BTBT) Surges 9.3% on $135M Convertible Note Upsizing and Ethereum Expansion

Summary
• Bit Digital (BTBT) surges 9.33% intraday to $3.28, driven by a $135M upsized convertible note offering.
• Company’s Ethereum holdings now valued at $532.5M, with 121,252 ETH staked.
• Turnover hits 26.5M shares, 8.58% of float, amid mixed sector performance.

Bit Digital’s stock erupted in late trading as the company announced a $135M convertible note upsizing to fund Ethereum purchases. The move, coupled with a strategic pivot to Ethereum treasury and staking, triggered a 9.33% rally from $3.03 to $3.36. With the blockchain sector under pressure, BTBT’s surge highlights its aggressive ETH accumulation strategy and market confidence in its institutional-grade staking infrastructure.

Convertible Note Upsizing and Ethereum Accumulation Drive BTBT's Sharp Rally
Bit Digital’s 9.33% intraday surge stems from its $135M upsized convertible note offering, priced at $4.16 per share—a 30% premium to its Sept. 29 close. The proceeds will directly fund Ethereum purchases, expanding its staked ETH holdings to 121,252 tokens (valued at $532.5M). This strategic shift to a pure-play Ethereum treasury model, announced alongside Q2 2025 earnings, has repositioned BTBT as a leveraged ETH proxy. The move aligns with broader market speculation about Ethereum’s post-merge performance and institutional demand for staking yields, despite a 30% discount in its conversion price to current ETH prices.

Blockchain Sector Under Pressure as BTBT Defies Trend
The broader blockchain sector, represented by the NYDIG Blockchain Index, fell 1.2% on the day, with peers like Riot Platforms (RIOT) down 0.74%. BTBT’s outperformance reflects its unique positioning as an Ethereum-focused treasury vehicle. While competitors like Cipher Mining (CIFR) faced sell-offs after similar capital raises, Bit Digital’s strategic clarity—sunsetting Bitcoin mining and doubling down on ETH—has attracted institutional attention. Deutsche Bank and Northland Securities recently upgraded BTBT to 'Buy,' citing its $14.9M Q2 profit and $468M WhiteFiber stake.

Options and ETF Plays for BTBT’s Volatile ETH-Linked Trajectory
• MACD: 0.0596 (bullish crossover), RSI: 51.66 (neutral), 200D MA: $2.77 (below price).
• Bollinger Bands: Price at $3.28, 22% above 200D MA, near upper band ($3.38).
• Support/Resistance: 30D support at $2.94–$2.96, 200D resistance at $2.99–$2.99.

BTBT’s technicals suggest a short-term bullish bias, with RSI hovering near 50 and MACD above its signal line. The stock is trading 16% above its 200-day average, indicating momentum. Key levels to watch: $3.36 (intraday high) and $3.03 (intraday low).

Top Options Picks:
1. BTBT20251010C3.5 (Call, $3.5 strike, Oct 10 expiry):
• IV: 134.40% (high volatility)
• Leverage Ratio: 16.35%
• Delta: 0.425 (moderate sensitivity)
• Theta: -0.0192 (moderate time decay)
• Gamma: 0.5387 (high sensitivity to price swings)
• Turnover: $54,983
• Payoff at 5% Upside ($3.44): $0.94/share. This contract offers a balance of leverage and liquidity, ideal for a short-term bullish bet on BTBT’s ETH-driven momentum.

2. BTBT20251017C3.5 (Call, $3.5 strike, Oct 17 expiry):
• IV: 117.12%
• Leverage Ratio: 13.63%
• Delta: 0.4464
• Theta: -0.0126
• Gamma: 0.4783
• Turnover: $11,032
• Payoff at 5% Upside ($3.44): $0.94/share. This option provides slightly lower volatility but higher liquidity, suiting traders seeking a safer entry into BTBT’s ETH-linked rally.

Action Insight: Aggressive bulls may consider BTBT20251010C3.5 into a breakout above $3.36, while conservative traders can target BTBT20251017C3.5 for a more measured ETH-driven rally.

Backtest Bit Digital Stock Performance
Bit Digital, Inc. (BTBT) has experienced a significant intraday surge of approximately 9% from 2022 to the present date. However, it's important to note that past performance is not indicative of future results, and investors should exercise caution when making investment decisions.1. Recent Surge: BTBT saw a notable increase of about 9% intraday from 2022 to the current date, which is a significant short-term gain.2. Production Highlights: The company has been actively involved in digital asset mining, specifically Bitcoin and Ethereum production. In September 2022, Bit Digital earned 141.3 Bitcoins, a slight decrease from the previous month, but still indicative of operational efficiency.3. Corporate Developments: Bit Digital has been expanding its mining capacity, with a reported increase in the network hash rate affecting Bitcoin production negatively, despite the surge in the number of Bitcoin miners.4. Financial Performance: The company has faced challenges, including quarterly losses and revenue misses. For instance, in Q3 2022, Bit Digital reported a loss of $0.17 per share, missing the consensus estimate.5. Investment Considerations: While the recent surge is positive, investors should consider the broader market conditions, company-specific factors, and the highly volatile nature of the cryptocurrency sector before making investment decisions.

BTBT’s ETH-Driven Momentum: A High-Volatility Play on Institutional Staking
Bit Digital’s 9.33% rally underscores its transformation into a leveraged Ethereum proxy, with $532.5M in staked ETH and a $135M capital raise fueling further accumulation. While the blockchain sector struggles, BTBT’s strategic clarity and institutional backing—Deutsche Bank’s recent upgrade and a 74.3% stake in WhiteFiber—position it as a high-volatility play. Watch for a breakout above $3.36 (52W high) to validate bullish momentum or a breakdown below $2.94 (30D support) to trigger short-term profit-taking. With RIOT down 0.74%, BTBT’s divergence highlights its unique positioning in the Ethereum narrative. Investors should prioritize liquidity-rich options like BTBT20251010C3.5 for a high-leverage, short-term ETH-linked bet.