Bitcoin Miner Bit Digital Files to Raise Up to $500M in Equity

Bitcoin miner Bit Digital (BTBT) filed a prospectus with the U.S. Securities and Exchange Commission (SEC) for the sale of up to $500 million in equity from time to time, also known as an “at-the-market” (ATM) offering.

The equity offerings may include ordinary shares, preferred shares (including convertible preferred shares), warrants and units comprised of any combination thereof, according to the filing.
The company said the proceeds would be used for general corporate purposes, including capital expenditures, buying new mining equipment, other potential acquisitions and general working capital.
H.C. Wainwright will act as the underwriter if Bit Digital sells ordinary shares and will offer to sell about 181.8 million shares, implying a roughly 241% increase in outstanding shares, if all of the $500 million worth of shares are sold.
That being said, the prospectus is a “shelf” registration, meaning there is no present intention to immediately sell all the securities being registered.
Bit Digital migrated all of its bitcoin (BTC) mining rigs in North America from China last year amid China’s sweeping ban of the industry. Almost 40% of its machines have came online in North America as of March 16.
The rest of the miners that are awaiting installation in the U.S. are expected to be installed at sites operated by Compute North and/or at the new facilities to be operated by Digihost and Blockfusion in upstate New York this year, the company said in the filing.
Bit Digital’s offering comes shortly after one of the largest bitcoin miners, Riot Blockchain (RIOT), filed a similar prospectus to sell up to $500 million shares in an ATM offering. And another miner, Mawson Infrastructure (MIGI), also announced this month it was looking to raise up to $500 million in equity offerings.
Bit Digital’s shares were unchanged after-hours, but have fallen about 58% this year, compared with bitcoin’s decline of 13%.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Follow @Aoyon_A on Twitter

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

10 Years of Decentralizing the Future