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NEW YORK - Cryptocurrency platform Bit Digital, Inc. (NASDAQ:BTBT), a $488.7 million market cap company currently trading at $2.35, announced today it has commenced an underwritten public offering of its ordinary shares, with all shares being offered by the company. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value metrics.
According to the press release statement, Bit Digital intends to use the net proceeds from the proposed offering to purchase Ethereum. While the company maintains a strong liquidity position with a current ratio of 3.9 and more cash than debt on its balance sheet, InvestingPro data indicates the company has been quickly burning through cash. The company did not disclose the size or terms of the offering, and noted there is no assurance regarding whether or when the offering may be completed.
B. Riley Securities is serving as the sole bookrunning manager for the offering, while Clear Street, Craig-Hallum and Northland Capital Markets are acting as co-managers.
The securities are being offered pursuant to a shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission on April 30, 2025, and declared effective on June 20, 2025.
Bit Digital describes itself as a digital asset platform focused on Ethereum-native treasury and staking strategies. Despite showing strong revenue growth of 52.44% in the last twelve months, the company’s stock has demonstrated high volatility with a beta of 5.37. The company began accumulating and staking ETH in 2022 and now operates an Ethereum staking infrastructure that includes validator operations, custody, protocol governance, and yield optimization. For deeper insights into Bit Digital’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
The announcement comes as part of the company’s ongoing focus on its Ethereum-based business strategy. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.
In other recent news, Bit Digital reported a significant earnings miss for Q1 2025, with an EPS of -$0.32 against a forecasted -$0.03. The company’s revenue fell 17% year-over-year to $25.1 million, primarily due to a 64% decline in Bitcoin mining revenue. However, the cloud services segment saw an 84% surge, indicating a strategic shift towards high-performance computing. Additionally, Bit Digital’s subsidiary, WhiteFiber Inc., secured a $43.9 million financing facility from the Royal Bank of Canada to support its Canadian data center expansion. The financing includes a $5.8 million revolving term facility and aims to refinance the buildout of the MTL-2 data center in Quebec. In another development, WhiteFiber acquired a 96-acre property in North Carolina for a new AI data center campus, with plans to expand capacity up to 200 MW. Furthermore, Bit Digital’s shareholders approved critical proposals, including the election of directors and adoption of the 2025 Omnibus Equity Incentive Plan. The company also experienced a stock decline following Moody’s downgrade of the U.S. credit rating, aligning with broader market trends.
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