Bit Digital announced Wednesday that it added 31,057 Ethereum to its treasury, bringing total holdings to 150,244 Ethereum valued at approximately $675 million. The company ranks sixth among Ethereum digital asset treasuries when measured by total holdings.
The acquisition was funded through net proceeds from a recently completed $150 million convertible note offering. Kraken Financial, Jump Trading Credit, and Jane Street Capital participated in the offering, which included full exercise of underwriters' options.
CEO Sam Tabar stated the structure of convertible notes allowed the company to raise capital at a premium to mark-to-market net asset value. The firm deployed proceeds directly into Ethereum with a guiding principle to grow NAV per share and create long-term shareholder value.
The initial conversion price for the notes was $4.16 per share, representing an 8.2% premium to the company's estimated mNAV at the time of deal pricing. Net asset value measures how leveraged a digital asset treasury is by taking total crypto assets held, minus liabilities, divided by shares outstanding.
Bit Digital now ranks behind PulseChain Sac with 160,900 Ethereum, the Ethereum Foundation with 222,720 Ethereum, The Ether Machine with 496,710 Ethereum, SharpLink Gaming with 838,730 Ethereum, and Bitmine Immersion Technologies with 2.83 million Ethereum, according to StrategicETHReserve.xyz data.
The company's estimated mNAV as of late September stood at $3.84 per share. This valuation is backed by $512.7 million in Ethereum and $723.1 million in shares of its majority-owned subsidiary, WhiteFiber Inc.
Tabar told the media last week that many companies building Ethereum treasuries are using extremely risky debt to acquire Ethereum. He suggested digital asset treasuries should consider unsecured debt financing over secured debt financing as a better hedge against bearish market conditions.
Founded in 2015, Bit Digital pivoted from a Bitcoin mining operator to becoming a pure-play Ethereum staking and treasury company in July. The Nasdaq-listed company, under ticker symbol BTBT, sold 280 Bitcoin and used $173 million from an equity raise to fund its initial Ethereum acquisition.
Tabar confirmed the firm plans to continue expanding its Ethereum holdings in a cost-effective manner while maintaining focus on long-term net asset value growth for shareholders.