Bit Digital Eyes $500M ATM as Bitcoin Mining Economics Tighten
Bit Digital has filed to raise up to $500 million through an at-the-market (ATM) equity offering to fund its further diversification beyond Bitcoin mining into high-performance computing and cloud servicing.
The proposed raise would exceed the company’s current market capitalization of approximately $429 million, highlighting the scale of dilution if the offering is fully executed. Bit Digital had 203.8 million shares outstanding as of April 28, according to the filing on Wednesday.
Under the program, Bit Digital may issue and sell shares of its common stock from time to time through investment bank H.C. Wainwright & Co., which will act as the sales agent and receive a commission of up to 3% on any shares sold.
Proceeds from the offering are earmarked for general corporate purposes, including capital expenditures on new mining and cloud servicing equipment, working capital, and potential acquisitions. The company did not specify when or how quickly it plans to tap the facility, stating that sales will depend on market conditions and internal capital needs.
The move comes amid tightening economics for Bitcoin miners in recent months as hashprice remains below $50/PH/s. Bit Digital’s fourth quarter earnings report shows that its fleet hashcost alone amounted to $44/PH/s before corporate hashcost is included.
In response, mining companies have pursued equity offerings, debt financing, or convertible notes to support operations and pivot into adjacent sectors like AI and HPC.
In the fourth quarter of 2024 alone, public mining companies raised over $1.6 billion via equity financing and more than $4.6 billion via debt financing.
