Bit Digital (BTBT) shares declined 8% at U.S. market opening, falling to $2.92 following the company's announcement of an upsized $135 million convertible note offering. The cryptocurrency mining firm increased its 4.00% convertible senior notes from the original $100 million amount. Underwriters maintain a 30-day option to buy up to an additional $15 million in notes, which mature October 1, 2030, unless converted, redeemed or repurchased earlier.
The initial conversion price establishes at $4.16 per share, representing a significant 30% premium over Bit Digital's September 29 closing price of $3.20. Net proceeds project approximately $128.9 million, potentially reaching $143.3 million if underwriters fully exercise their option.
Bit Digital plans to allocate funds primarily toward ether (ETH) purchases. Currently, the company maintains holdings of 121,252 ETH with an average acquisition cost of $2,635 per token.
This market reaction mirrors recent events with Cipher Mining (CIFR), whose shares dropped 19% over two days following a similar convertible notes issuance.