Shares of Bit Digital (BTBT) experienced a decline of 8% as U.S. markets opened today, reaching a price of $2.92. This drop occurred following the company’s announcement of an expanded convertible note offering totaling $135 million.
The company has increased the offering size of its 4.00% convertible senior notes from the initially planned $100 million. The underwriters involved in the deal have the option to purchase an additional $15 million in notes within a 30-day period. These notes are scheduled to mature on October 1, 2030, unless they are converted, redeemed, or repurchased before that date.
The starting price for converting these notes into shares is set at $4.16 per share. This represents a 30% increase compared to Bit Digital’s closing share price of $3.20 on September 29. The company anticipates net earnings of roughly $128.9 million from this offering, potentially rising to $143.3 million if the underwriters fully exercise their purchase option.
Bit Digital plans to allocate the majority of the incoming capital towards acquiring . Currently, the company’s holdings include 121,252 ETH, acquired at an average cost of $2,635 each.
Notably, a similar market reaction was observed last week with Cipher Mining (CIFR). The company’s stock price decreased significantly, tumbling 19% within two days, following their own announcement of a convertible notes issuance.