Ethereum treasury Bit Digital proposes raising $100 million with convertible note offering

Ethereum digital asset treasury Bit Digital said Monday it has proposed offering convertible notes for $100 million in order to buy more ETH.

"The net proceeds from the offering will primarily be used to purchase Ethereum and may be used by the company for general corporate purposes, including potential investments, acquisitions and other business opportunities relating to digital assets," the company said in a statement .

Bit Digital (ticker BTBT)  filed a preliminary prospectus with the U.S. Securities and Exchange Commission. Barclays, Cantor, and B. Riley Securities are lead book-running managers for the offering.

In June, Bit Digital, founded in 2015, pivoted from a bitcoin mining operator to become "a pure-play" Ethereum staking and treasury company. The Nasdaq-listed company reported a decline in total revenue for the second quarter of this year. 

Bit Digital's move has been part of a trend of firms launching digital asset treasury (DAT) strategies , which offer investors leveraged exposure to assets like BTC, ETH, and SOL. Ahead of Bit Digital, BitMine Immersion, and SharpLink Gaming are the two largest DATs holding Ethereum.

The world's biggest Bitcoin treasury, Strategy, has also used convertible notes to raise money to fuel crypto purchases.

Bit Digital hasn't acquired a meaningful amount of Ethereum since July. The company has been accumulating and staking ETH since 2022.

After closing the day up 8.4%, BTBT shares fell 10% in after-hours trading. The company has a market capitalization of around $950 million.