TLDR
- Bit Digital unveils $100M convertible note, stock drops after-hours.
- BTBT surges then sinks on $100M convertible note for Ethereum buys.
- Convertible note sparks dilution fears, BTBT falls after the bell.
- Bit Digital raises $100M to fuel Ethereum push, stock reacts sharply.
- $100M convertible notes send BTBT sliding despite crypto growth plans.
Bit Digital, Inc. (NASDAQ: BTBT) saw its stock rise 8.47% to $3.20 at market close. However, the momentum quickly reversed in after-hours trading with shares sliding 8.44% to $2.93. The sharp move followed the announcement of a significant convertible note offering.
Bit Digital, Inc. (NASDAQ: BTBT)
$100 Million Convertible Note Offering Announced
Bit Digital confirmed plans for a $100 million offering of convertible senior notes due in 2030. The company also granted underwriters a 30-day option to purchase an additional $15 million in notes. This option provides flexibility in case demand exceeds initial expectations.
The notes will be senior and unsecured, and they will mature on October 1, 2030. Holders may convert them into cash, common shares, or a combination of both. Bit Digital will finalize the interest rate and conversion terms at the time of pricing.
The offering proceeds will primarily support Ethereum purchases. Bit Digital may also use funds for acquisitions or other digital asset-related business opportunities. The company disclosed this under a registered shelf offering declared effective on June 20, 2025.
Terms and Market Reactions
Barclays, Cantor Fitzgerald, and B. Riley Securities are leading the underwriting. These firms are managing the offering and coordinating with institutional buyers. All offering documents are publicly available through the SEC website.
Despite positive market sentiment during regular hours, the after-hours drop signals concerns about dilution. Convertible notes can eventually result in the issuance of additional shares, potentially reducing share value. Traders responded quickly, pushing the price below the day’s close.
The timing of the drop aligns with the release of the announcement. Investors often react to convertible offerings by pricing in future equity expansion. Although Bit Digital intends to use the proceeds for crypto expansion, the stock’s decline reflects short-term uncertainty.
Background and Strategic Context
Bit Digital operates as a digital asset mining company focused on Bitcoin and Ethereum. The firm shifted focus toward Ethereum-based opportunities in recent quarters. This funding round reinforces its strategy of acquiring and holding more digital assets.
In 2024, Bit Digital gradually increased its exposure to Ethereum. This move differentiates it from peers that remain Bitcoin-centric. The company sees growth potential in Ethereum’s ecosystem and upcoming upgrades.
The offering positions Bit Digital for scale as the digital asset market evolves. While the stock declined in after-hours trading, the long-term impact depends on execution. Investors will be watching how Bit Digital deploys capital and manages conversion risk.
