Ethereum-focused treasury company Bit Digital bought $150 million worth of Ethereum (ETH) through a convertible notes offering. The firm purchased approximately 31,057 ETH using the raised capital, boosting its total Ethereum holdings to around 150,244 tokens.
With this move, Bit Digital has become one of the biggest institutional holders of Ethereum publicly. Big-name crypto investors like Kraken Financial, Jump Trading, and Jane Street Capital joined the deal.
As per the announcement, the convertible notes were priced at an initial conversion rate of $4.16 per share, representing an 8.2% premium to the company’s estimated mark-to-market net asset value (mNAV) of $3.84 per share. Bit Digital calculates mNAV by combining its ETH holdings and stake in WhiteFiber, Inc. (“WYFI”), divided by outstanding shares.
As of September 29, this year, Bit Digital owned 121,252 ETH worth $512.7 million and over 27 million WYFI shares valued at $723.1 million. They then used the $150 million raised to buy more Ethereum at a smart, cost-effective price.
Strategic ETH expansion
CEO Sam Tabar highlighted the company’s focus on growing value for shareholders. He said, “This purchase demonstrates our commitment to building shareholder value by financing ETH accumulation on terms that are accretive to NAV per share.”
He also pointed out that Ethereum is a key part of digital finance and expressed confidence in its long-term growth. Moreover, Bit Digital plans to grow its ETH holdings while making the most of its majority stake in WhiteFiber.
Additionally, BitMine Immersion Technologies, another Ethereum-focused firm led by Fundstrat’s Thomas Lee, increased its Ethereum holdings by 179,251 tokens last week. The firm now controls more than 2.83 million ETH, accounting for over 2% of the cryptocurrency’s total supply.
According to CoinMarketCap, as of writing, Ethereum was trading at $4,484.34, down 4.69% in the past 24 hours, with a 24-hour volume of $56.38 billion.
Also Read: Grayscale Stakes $150M in ETH Ahead of its Staking ETF Approval
