Bit Digital will make a $100 million convertible bond sale.

Bit Digital, which focuses on Ethereum (ETH) staking and treasury investments, announced that they aim to acquire new Ethereum through a $100 million convertible note sale. The U.S.-based company announced that a significant portion of the net proceeds from this note sale would be used for Ethereum purchases, with the remainder to be utilized for the company's general operations and potential crypto investments.

Bit Digital has submitted a preliminary prospectus to the U.S. Securities and Exchange Commission (SEC) for this note offering. Renowned financial institutions such as Barclays, Cantor, and B. Riley Securities are managing the process. The company, founded in 2015, garnered attention last June by fully transitioning from Bitcoin (BTC) mining to Ethereum staking and treasury management. However, it reported a decrease in revenue in its second-quarter financial report.

Bit Digital's move stands out as part of the digital asset treasury (Digital Treasury Strategy - DAT) trend. Previously, BitMine Immersion and SharpLink Gaming had become the two largest DAT companies holding substantial amounts of Ethereum. Furthermore, MicroStrategy, the world's largest Bitcoin treasury, had similarly raised funds through convertible notes to make crypto acquisitions.

Bit Digital has been accumulating Ethereum and utilizing it for staking operations since 2022. The company had not made any significant Ethereum purchases since July. Following the announcement, BTBT shares closed the day with an 8.4% increase, but lost 10% in after-hours trading, demonstrating the effects of market volatility. The company's current market capitalization is approximately $950 million.