Bit Digital Inc. (Nasdaq: BTBT) has purchased 31,057 Ether (ETH) using proceeds from its recently completed $150 million convertible notes sale, the company announced on October 8, strengthening its position among the largest institutional Ethereum holders in the public markets.
The financing included underwriters fully exercising their overall allotment option. The notes carry an initial conversion price of $4.16 per share — an 8.2% premium to the company’s estimated mark-to-market net asset value (mNAV) at the time of pricing.
Ethereum Treasury Expands
Following the acquisition, Bit Digital’s Ethereum holdings rose to approximately 150,244 ETH. The company, which positions itself as a digital asset treasury firm, said several institutional investors participated in the offering, including Kraken Financial, Jump Trading Credit and Jane Street Capital. The move comes as digital asset companies increasingly build large on-balance-sheet treasuries, aiming to capitalize on price cycles while maintaining exposure to key blockchain infrastructure assets.
Chief Executive Officer Sam Tabar said the company’s strategy centres on increasing its per-share asset value while deploying capital efficiently. “We view ETH as foundational to digital financial infrastructure,” Tabar said in a statement. “We are focused on cost-effectively expanding our Ethereum treasury.”
mNAV and Asset Valuation
Bit Digital’s estimated mNAV is based on its Ethereum treasury and its majority ownership stake in WhiteFiber Inc. (WYFI). As of Sept. 29, the company held 121,252 ETH valued at $4,229 per token, totalling about $512.7 million. Its 27,043,749 WYFI shares were valued at $26.74 each, amounting to approximately $723.1 million.
Combined, the assets were valued at roughly $1.236 billion, with 321.4 million BTBT shares outstanding. That calculation placed the company’s estimated mNAV at $3.84 per share at the time the notes were priced. The conversion price of $4.16 represented an 8.2% premium. The company emphasized that mNAV figures are based on market data as of Sept. 29 and remain subject to volatility.
Strategic Capital Allocation
Convertible notes have become a preferred funding instrument in the digital asset sector, offering companies access to capital while aligning investor incentives with share price performance. By issuing the notes at a premium, Bit Digital secured additional funds without immediately diluting existing shareholders. The company said the transaction reflects its broader strategy of expanding its ETH reserves and leveraging market opportunities to increase asset value per share.
