Bit Digital to Raise $67.3 Million for Ethereum Investment

Bit Digital, listed on Nasdaq, has announced plans to raise $67.3 million through a direct share offering of 22 million ordinary shares aimed at institutional investors. This funding will be used specifically to purchase Ethereum. According to a statement released on Monday, the shares are priced at $3.06 each, with B. Riley Securities serving as the placement agent. The offering is anticipated to close on or around July 15. "The Company intends to use the net proceeds from the proposed offering to purchase Ethereum," stated Bit Digital. This fundraising follows the company's prior announcement that it converted all of its Bitcoin treasury into Ethereum. As of July 7, Bit Digital held about 100,603 ETH, which is valued at approximately $301 million based on current market prices. Bit Digital operates as a crypto infrastructure company, offering services in validator operations, enterprise-level custody, and yield optimization. The company started accumulating and staking Ether back in 2022. In a separate filing with the Securities and Exchange Commission on Monday, Bit Digital estimated its preliminary revenue for Q2 to be between $24.3 million and $26.9 million. On Monday, Bit Digital's stock closed at $3.29, down 1.2%, although it has seen a 32.1% increase over the past month. As for Ether, it rose by 0.6% to $2,991, reflecting an 18.3% increase in the last week amid a broader crypto market rally. Bitcoin, on the other hand, experienced a slight decline of 0.1%, settling at $118,852. Disclaimer: The Block is an independent media outlet. As of November 2023, Foresight Ventures is the majority investor in The Block. This article is for informational purposes only and should not be considered legal, tax, investment, or financial advice.