1 week ago
Bit Digital (BTBT) shares slid 8% astatine the U.S. marketplace open, dropping to $2.92 aft the company announced an upsized $135 cardinal convertible enactment offering.
Bit Digital accrued the size of the 4.00% convertible elder notes offering from $100 million. Underwriters clasp a 30-day enactment to acquisition up to an further $15 million. The notes volition mature connected Oct. 1, 2030, unless earlier converted, redeemed oregon repurchased.
The archetypal conversion terms is acceptable astatine $4.16 per share, representing a 30% premium implicit Bit Digital’s Sept. 29 closing terms of $3.20. Net proceeds are expected to beryllium astir $128.9 million, oregon $143.3 cardinal if the underwriters afloat workout their option.
Bit Digital intends to usage the funds chiefly to acquisition ether (ETH). As of now, the institution holds 121,252 ETH astatine an mean acquisition outgo of $2,635.
A akin sell-off occurred past week with Cipher Mining (CIFR), whose shares slumped 19% successful 2 days aft a convertible notes issuance.
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