Bit Digital (BTBT) Surges 3.25% on Ethereum Expansion, $150M Convertible Notes Offering

Bit Digital (BTBT) surged 3.25% in intraday trading on October 14, 2025, marking its highest level since October 2025. The stock has rallied 9.84% over two days, driven by a strategic $150 million convertible notes offering and Ethereum (ETH) treasury expansion. The company allocated $143.3 million of the proceeds to purchase 31,057 ETH, boosting its holdings to 150,244 tokens, valued at over $675 million as of September 2025. This move reinforced Bit Digital’s position as a major institutional ETH holder and expanded staking operations, aligning with Ethereum’s proof-of-stake model to generate yield.

Recent volatility in the stock has been tied to Ethereum price swings and concerns over over-concentration in a single asset. For instance, a 6.2% drop in ETH prices in late September 2025 triggered a corresponding decline in Bit Digital’s shares. Conversely, early October saw a rebound as Ethereum sentiment improved. The company’s strategic staking infrastructure and validator network expansion are seen as long-term growth drivers, though analysts caution that a sharp ETH price correction could erode shareholder value.

Bit Digital’s capital structure adjustments also influenced investor sentiment. A pending shareholder vote to increase authorized share capital aims to facilitate further Ethereum purchases but has raised dilution risks. While the convertible notes offering was priced at an 8.2% premium to the company’s estimated net asset value, additional equity issuances could pressure existing shareholders. Institutional investors, including Deutsche Bank AG and Charles Schwab Investment Management, have increased stakes, signaling confidence in the firm’s dual strategy of digital asset accumulation and AI infrastructure diversification.

WhiteFiber, Bit Digital’s majority-owned AI and high-performance computing subsidiary, remains a key growth catalyst. Its August 2025 IPO added $723.1 million to the parent company’s net asset value, creating synergies by leveraging Ethereum holdings as collateral. Analysts highlight WhiteFiber’s potential to benefit from AI trends, though regulatory uncertainties and macroeconomic shifts—such as evolving U.S. crypto policies or Federal Reserve rate decisions—pose indirect risks to the stock’s trajectory.