Bit Digital, a Bitcoin mining company, plans to raise up to $500 million through an at-the-market offering. This amount is higher than its current market value of $429 million.
The firm plans to leverage the funds to transcend Bitcoin mining. It intends to move into high-performance computing as well as cloud services. The funds will go towards equipment and day-to-day operations, as well as potential acquisitions.
Bit digital files flexible share offering
The offering was filed on Wednesday. It stated that as of April 28, 203.8 million shares existed. Investment bank H.C. Wainwright & Co. will facilitate the sale of the shares. The bank will receive a maximum of 3% in commission for sold shares.
Bit Digital did not specify when the sale of its shares will take place. It said the process will be driven by market conditions and its internal requirements. The firm desires flexibility with how and when it will utilize the offering.
The move arrives amidst difficult times for Bitcoin miners. The price is below $50 per PH/s. Bit Digital in its last earnings update posted a fleet hash cost of $44 per PH/s. Corporate-level expenses are not included in that.
Bitcoin miners seek new strategies
Cryptocurrency mining businesses are under mounting fiscal pressure. Several of them have resorted to equity or borrowing to stay in business. Others also venture into other domains such as artificial intelligence and high-end computing.
Last quarter of 2024, public mining companies raised more than $6 billion. $1.6 of that amount came from equity. The balance came from debt. These figures represent an overall trend within the industry as firms move with the changing market.
Bit Digital’s new strategy indicates its willingness to change. It plans to lessen its dependency on Bitcoin mining. It plans instead to move into developing technological sectors. The offering provides the company with additional financial resources in order for it to make the change.
