Bit Digital Buys $150 Million in Ethereum
Bit Digital, a treasury company focused on Ethereum, purchased $150 million worth of ETH. The firm acquired about 31,057 Ethereum tokens through a convertible notes offering. This purchase raised Bit Digital’s total Ethereum holdings to roughly 150,244 tokens.
With this acquisition, Bit Digital has become one of the largest public institutional holders of Ethereum. Major crypto investors like Kraken Financial, Jump Trading, and Jane Street Capital participated in the deal.
Details of the Convertible Notes Offering
The convertible notes were priced at an initial conversion rate of $4.16 per share. This price represents an 8.2% premium over Bit Digital’s estimated mark-to-market net asset value (mNAV) of $3.84 per share. The company calculates mNAV by combining its Ethereum holdings and stake in WhiteFiber, Inc. (WYFI), divided by outstanding shares.
As of September 29, Bit Digital owned 121,252 ETH valued at $512.7 million. It also held over 27 million WYFI shares worth $723.1 million. The $150 million raised was used to buy more Ethereum at a favorable price.
Company Strategy and Market Context
CEO Sam Tabar emphasized the company’s goal to increase shareholder value. He stated, “This purchase demonstrates our commitment to building shareholder value by financing ETH accumulation on terms that are accretive to NAV per share.”
Tabar highlighted Ethereum’s importance in digital finance and expressed confidence in its long-term growth. Bit Digital plans to expand its ETH holdings while leveraging its majority stake in WhiteFiber.
Meanwhile, BitMine Immersion Technologies, led by Fundstrat’s Thomas Lee, increased its Ethereum holdings by 179,251 tokens last week. BitMine now controls over 2.83 million ETH, more than 2% of Ethereum’s total supply.
According to CoinMarketCap, Ethereum was trading at $4,484.34 at the time of writing. The price fell 4.69% in the past 24 hours, with a 24-hour trading volume of $56.38 billion.
