Bit Digital raises additional $21.4 million through share option exercise

NEW YORK - Cryptocurrency company Bit Digital, Inc. (NASDAQ:BTBT), currently trading at $2.31 with a market capitalization of $648 million, announced Tuesday that underwriters of its recent public offering have fully exercised their option to purchase an additional 11.25 million ordinary shares, generating approximately $21.4 million in additional net proceeds. According to InvestingPro data, the company has shown impressive revenue growth of 52% over the last twelve months.

The exercise of the option closed on Tuesday, bringing the total number of shares sold in the underwritten public offering to 86.25 million. The company has now raised approximately $162.9 million in net proceeds from the offering, after deducting underwriting discounts and estimated expenses. The timing of this capital raise is notable, as InvestingPro analysis shows the stock has experienced a 10.25% decline over the past week, though the company maintains a strong current ratio of 3.9, indicating solid short-term liquidity.

According to the press release, Bit Digital intends to use the proceeds to purchase Ethereum.

B. Riley Securities served as the sole bookrunning manager for the offering, while Clear Street, Craig-Hallum, and Northland Capital Markets acted as co-managers.

The securities were offered through 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. The company began accumulating and staking ETH in 2022 and now operates what it claims is one of the largest institutional Ethereum staking infrastructures globally. For deeper insights into Bit Digital’s financial health and growth prospects, investors can access comprehensive analysis and 8 additional ProTips through InvestingPro’s detailed research reports, part of its coverage of over 1,400 US equities.

The company’s platform includes validator operations, custody services, protocol governance, and yield optimization capabilities through partnerships across the Ethereum ecosystem.

In other recent news, Bit Digital Inc. has announced several strategic changes and financial moves. The company plans to transition into a pure-play Ethereum treasury and staking company, moving away from its bitcoin mining operations, which generated $7.8 million in the first quarter of 2025. Bit Digital will spin off its WhiteFiber high-performance compute business through a public offering, which produced $16.5 million in revenue during the same period. To support its new focus, the company priced a $150 million public offering of 75 million ordinary shares at $2.00 per share. B. Riley Securities is the sole bookrunning manager for this offering. The proceeds will be used to purchase Ethereum, aligning with Bit Digital’s strategic pivot. H.C. Wainwright has reiterated its Buy rating for Bit Digital, maintaining a $7.00 price target and naming the company a top pick for 2025. The firm projects WhiteFiber could reach approximately $150 million in quarterly revenue by the end of 2026. Bit Digital’s shift to Ethereum staking reflects the growing importance of Ethereum’s proof-of-stake mechanism in the cryptocurrency ecosystem.

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