Bitcoin Miner Bit Digital Files to Raise Up to $500M in Equity

The proceeds will be used for capital expenditures, buying new mining equipment and other potential acquisitions.

Bitcoin miner Bit Digital (BTBT) filed a prospectus with the U.S. Securities and Exchange Commission (SEC) for the sale of up to $500 million in equity from time to time, also known as an “at-the-market” (ATM) offering.

  • The equity offerings may include ordinary shares, preferred shares (including convertible preferred shares), warrants and units comprised of any combination thereof, according to the filing.
  • The company said the proceeds would be used for general corporate purposes, including capital expenditures, buying new mining equipment, other potential acquisitions and general working capital.
  • H.C. Wainwright will act as the underwriter if Bit Digital sells ordinary shares and will offer to sell about 181.8 million shares, implying a roughly 241% increase in outstanding shares, if all of the $500 million worth of shares are sold.
  • That being said, the prospectus is a “shelf” registration, meaning there is no present intention to immediately sell all the securities being registered.
  • Bit Digital migrated all of its bitcoin mining rigs in North America from China last year amid China’s sweeping ban of the industry. Almost 40% of its machines have came online in North America as of March 16.
  • The rest of the miners that are awaiting installation in the U.S. are expected to be installed at sites operated by Compute North and/or at the new facilities to be operated by Digihost and Blockfusion in upstate New York in 2022, the company said in the filing.
  • Bit Digital’s offering comes shortly after one of the largest bitcoin miners, Riot Blockchain (RIOT), filed a similar prospectus to sell up to $500 million shares in an ATM offering. And another miner, Mawson Infrastructure, also announced this month it was looking to raise up to $500 million in equity offerings.
  • Bit Digital’s shares were unchanged after hours, but have fallen about 58% this year, compared to bitcoin’s decline of 13%.
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