Nasdaq-listed crypto infrastructure firm Bit Digital announced plans to raise $67.3 million through a direct offering of 22 million ordinary shares aimed at institutional investors to expand Ethereum Treasury.
Key Takeaways:
- Bit Digital plans to raise $67.3 million through a direct share offering to buy more Ethereum.
- The company recently converted its entire Bitcoin holdings to Ether.
- Bit Digital’s move aligns with growing institutional interest in Ethereum amid a rising crypto market.
The proceeds will be used exclusively to purchase Ethereum, further expanding the company’s growing ETH treasury, the firm said in a Monday announcement.
Priced at $3.06 per share, the offering is managed by B. Riley Securities and is expected to close around July 15.
Bit Digital Converts Entire Bitcoin Holdings to Ethereum
The move follows Bit Digital’s recent decision to convert its entire Bitcoin holdings into Ether, reflecting a strategic pivot toward Ethereum.
As of early July, the firm held roughly 100,603 ETH, valued at approximately $301 million.
Bit Digital offers a range of services including validator operations, enterprise custody, and yield optimization.
It began building its Ethereum stake and engaging in staking activities in 2022, signaling a long-term commitment to the Ethereum ecosystem.
In a recent filing with the Securities and Exchange Commission, Bit Digital disclosed its preliminary estimated revenue for the second quarter to be between $24.3 million and $26.9 million.
Despite a slight dip in its stock price by 1.2% to close at $3.29 on Monday, shares have risen more than 32% over the last month.
Ethereum’s price has also gained momentum, rising 0.6% to $2,991 and climbing over 18% in the past week amid a broad crypto market rally.
Meanwhile, Bitcoin remained relatively flat, dipping slightly to $118,852.
Bit Digital’s latest capital raise and strategic shift toward Ethereum comes amid growing institutional interest in the world’s second-largest cryptocurrency.
On Monday, SharpLink Gaming increased its Ethereum holdings with a fresh acquisition valued at nearly $49 million.
As reported, the company received 16,374 ETH on Sunday afternoon, sourced from a wallet that had recently purchased the tokens from Galaxy Digital’s over-the-counter market.
Last week, Ethereum co-founder Joe Lubin said the company has been purchasing tens of millions of dollars worth of ETH every day.
“We are accumulating more and more consistently — we’re able to acquire tens of millions of dollars in Ether a day,” Lubin told CNBC.
More Public Companies Diversify into Crypto
Following the model pioneered by Michael Saylor’s Strategy, more public companies are diversifying into crypto holdings that include BTC, ETH, SOL, and XRP.
Just recently, BIT Mining announced plans to raise between $200 million and $300 million to build a Solana (SOL) treasury as part of a broader expansion into the fast-growing blockchain ecosystem.
Last week, DeFi Development Corp. revealed that it has acquired $2.7 million worth of Solana as part of its aggressive crypto treasury strategy.
Likewise, Canadian digital asset firm Sol Strategies, already trading on the Canadian Securities Exchange, holds over 420,000 SOL tokens, positioning itself as a significant institutional player in Solana’s ecosystem.
Last month, the firm also filed to list its common shares on the Nasdaq Capital Market under the ticker “STKE” as it ramps up its U.S. expansion.
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