Bitcoin Mining Company Bit Digital Raises $150 Million to Buy Ethereum

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Bit Digital, one of the prominent Bitcoin mining companies in the US, has officially announced a strategic business redirection after successfully raising $150 million through a public stock offering. According to information from The Miner Mag cited by ChainCatcher, this capital will be used by Bit Digital to purchase Ethereum (ETH), marking the largest public financial commitment to ETH by a company to date.

In this issuance, Bit Digital sold 75 million shares at $2 per share, with an additional option for 11.25 million shares for underwriters within the next 30 days. The raised capital will not only be used to buy ETH but also to expand financial activities and Ethereum staking – completely replacing the traditional Bitcoin mining model the company previously pursued.

This large-scale capital raising is simultaneously a strategic move for Bit Digital to officially exit the Bitcoin mining sector – an industry facing significant challenges due to rising costs and tightened profits. Previously, the company relied on third-party operators like Mint to maintain its Mining Rig fleet, but this agreement was terminated at the end of last year, causing Bit Digital's mining operations to fall into a chaotic state.

Additionally, Bit Digital has filed a confidential initial public offering (IPO) for WhiteFiber Inc. – a 100% owned subsidiary. WhiteFiber focuses on developing high-performance computing (HPC), indicating that Bit Digital is reshaping its entire business strategy to align with new trends in blockchain and digital financial technology.

Exiting Bitcoin mining to transition to Ethereum staking and expanding into high-tech fields like HPC shows that Bit Digital is making a significant bet on the future of the Ethereum network and the long-term potential of decentralized financial (DeFi) services and Web3 infrastructure.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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