Bit Digital Shares Drop 8% Following $135M Convertible Note Increase
Bit Digital (BTBT) shares decreased by 8% to $2.92 after announcing a $135 million convertible note offering.
The offering size increased from $100 million, with underwriters having a 30-day option to buy an additional $15 million.
Notes will mature on Oct. 1, 2030, unless converted, redeemed, or repurchased earlier.
The conversion price is set at $4.16 per share, a 30% premium over the Sept. 29 closing price of $3.20.
Net proceeds are expected to be $128.9 million, potentially rising to $143.3 million if options are fully exercised.
Funds will be used mainly to purchase [ether](https://holder.io/coins/eth/), with Bit Digital currently holding 121,252 ETH at an average cost of $2,635 each.
A similar market reaction was seen with Cipher Mining (CIFR), whose shares fell 19% following a convertible notes issuance.
