Ethereum News Today: Bit Digital Aims to Overtake Coinbase in Ethereum Holdings with $135M Raise

Bit Digital, Inc. (Nasdaq: BTBT) has upsized its convertible senior notes offering to $135 million from an initial $100 million proposal, with proceeds intended to purchase Ethereum (ETH) and support general corporate purposesBit Digital Announces Pricing of Upsized $135 Million Convertible Notes Offering^[1]. The 4.00% fixed-rate notes, maturing in 2030, include an over-allotment option allowing underwriters to purchase an additional $15 million, potentially raising total proceeds to $150 million. The conversion terms stipulate an initial price of $4.16 per share, a 30% premium to the September 29 closing price of $3.20, translating to 240.3846 shares per $1,000 principal. This structure provides investors with flexibility to convert debt into equity or receive cash settlements, contingent on the company's discretionBit Digital Announces Pricing of Upsized $135 Million Convertible Notes Offering^[1].

Barclays, Cantor Fitzgerald, and B. Riley Securities are co-leading the underwriting, with the offering executed via an effective shelf registration filed in June 2025. The company emphasized that the notes are unsecured and rank equally with existing senior unsecured debt. Interest will accrue semiannually, with the first payment due April 2026. Holders retain a put option on October 1, 2028, allowing them to require repayment at 100% of principal plus accrued interest. The offering's final terms, including the coupon rate and conversion adjustments for corporate actions, will be detailed in the final prospectus supplementBit Digital Announces Pricing of Upsized $135 Million Convertible Notes Offering^[1].

The capital raise aligns with Bit Digital's strategy to expand its Ethereum treasury. The company, which began staking ETH in 2022, currently holds over 120,000 ETH and ranks as the seventh-largest institutional Ethereum treasury. If the offering completes as proposed, the firm could acquire an additional 23,714 ETH, potentially surpassing Coinbase to secure sixth place in the sectorBit Digital Plan to Raise $100 Million to Expand Ethereum Treasury^[3]. Analysts note that the convertible structure balances immediate liquidity with future equity dilution risks, a common tactic in volatile crypto markets. The stock (BTBT) initially surged 8.4% post-announcement but retreated 10% in after-hours trading, reflecting investor uncertainty around dilution and pricing termsBit Digital proposes $100M convertible notes to buy ETH^[2].

The decision to prioritize ETH purchases reflects broader institutional interest in Ethereum's staking yields and network upgrades. Bit Digital's platform integrates advanced validator operations, institutional-grade custody, and protocol governance, positioning it to capitalize on Ethereum's evolving ecosystem. However, the offering's success hinges on market conditions for both the notes and Ethereum itself. A low coupon rate paired with a high conversion premium could mitigate dilution risks, while a bearish ETH price may reduce the value of purchased assets relative to the debt's costBit Digital proposes $100M convertible notes to buy ETH^[2].

Industry data highlights growing institutional Ethereum accumulation, with over 11.8 million tokens held across treasuries and ETFs in 2025. Bit Digital's move follows similar strategies by firms like MicroStrategy, which has leveraged convertible debt for Bitcoin acquisitions. The company's focus on Ethereum, however, underscores confidence in the network's transition to proof-of-stake and its role in decentralized finance (DeFi) infrastructure. While the offering's terms remain subject to market approval, the expanded size signals Bit Digital's intent to secure a larger stake in Ethereum's long-term value propositionBit Digital Plan to Raise $100 Million to Expand Ethereum Treasury^[3].