Bit Digital (Nasdaq: BTBT) has finalized terms for a $135 million offering in 4.00% convertible notes maturing in 2030, aiming to increase its Ethereum (ETH) holdings as part of a broader digital asset strategy. The notes will be senior unsecured obligations, maturing in October 2030, with interest payable semiannually. The deal is expected to close on October 2, pending standard closing conditions.
As per the official announcement, Investors will be able to convert their notes into cash, Bit Digital shares, or a combination of both. The conversion rate is set at 240.3846 shares per $1,000 of principal, implying a premium of 30% above the company’s last closing price of $3.20. Bit Digital estimates it will net around $128.9 million in proceeds, or $143.3 million if underwriters exercise their full option to purchase an additional $15 million.
According to Bit Digital, the majority of funds will go toward acquiring Ethereum, with the remainder allocated to general corporate needs, including potential acquisitions or investments in digital assets. Barclays, Cantor, and B. Riley Securities are acting as joint lead book-runners for the offering.
Debt becomes a crypto treasury weapon
Bit Digital’s move mirrors a broader trend among publicly traded crypto firms turning to convertible debt markets to scale their digital asset exposure. On August 4th, Coinbase announced a plan to raise $2 billion through convertible senior notes due in 2029 and 2032. Coinbase, like Bit Digital, said the money could be used for product expansion and acquisitions.
Together, these raises highlight a growing convergence between capital markets and crypto balance sheets. Rather than liquidating assets or relying solely on operating income, firms are increasingly leveraging structured debt to deepen their digital asset strategies while retaining long-term flexibility.
Also read: Coinbase Plans Raising $2 Billion Through Convertible Notes
