Bit Digital Shares Rise After Raising $162.9 Million for Ethereum Treasury Strategy

The stock price of Bit Digital (BTBT) increased after the company announced raising an additional $21.4 million after underwriters fully exercised their option to purchase an additional 11.25 million common shares.

This addition raised the total funds from the offering to approximately $162.9 million. The company intends to use these funds to accumulate Ethereum (ETH) as part of its new business strategy.

Ethereum Drives Bit Digital Stock Price Higher

BeInCrypto previously reported that Bit Digital, initially a Bitcoin (BTC) mining company, has transformed into an Ethereum Treasury and Staking management company. As of the first quarter of 2025, the company holds 24,434.2 ETH and plans to convert its 417.6 BTC to ETH.

To strengthen its Ethereum position, Bit Digital launched a $150 million public offering on 06/26. According to the press release, the company offered 75 million common shares at $2 per share.

Moreover, as part of this offering, underwriters were granted a Call Option to purchase an additional 11.25 million shares within 30 days. They fully exercised this option, raising an additional $21.4 million. Consequently, the company sold a total of 86.25 million shares.

"The net proceeds for the Company from the underwritten public offering, including the full exercise of the underwriters' option to purchase additional common shares, are approximately $162.9 million, after deducting underwriting discounts and estimated offering expenses that we must pay. The company intends to use the net proceeds from this offering to purchase Ethereum," the company noted.

Notably, this announcement drove the stock price higher. Although initial news about the conversion and offering faced a decline, the successful capital raising triggered a stock value increase.

Data from Google Finance shows BTBT closed at $2.3, marking a 5.48% increase. Furthermore, the price rose an additional 2.6% in pre-market trading.

The stock price increase reflects a pattern observed in companies that have adopted strategies focused on Bitcoin. This suggests that, alongside BTC, Ethereum is also gaining trust from institutions and investors as an asset.

In fact, a previous announcement by BitMine committing $250 million to ETH Treasury led to a 684.8% increase in its stock price, highlighting strong market sentiment and investor appetite for Ethereum-focused strategies.

This increase can be attributed to growing optimism about ETH's price potential. Many predict that increasing stablecoin momentum and validator upgrades could drive prices higher. However, broader market conditions have exerted slight pressure on ETH's recent price surge.

Data from BeInCrypto shows the altcoin price dropped 0.82% in the past day. At the time of writing, Ethereum is trading at $2,444.