The proceeds will be used mainly for Ethereum purchases, aligning with the company's goal to become a pure-play Ethereum firm and capitalize on growing institutional interest.

Bit Digital is raising $100 million through a convertible senior note offering, with an option to raise an additional $15 million, primarily to purchase Ethereum and strengthen its digital asset holdings.

This move demonstrates Bit Digital's confidence in Ethereum's long-term value and reflects its strategic shift from Bitcoin mining to focusing solely on Ethereum staking and treasury management.

As of September 30, 2025, Ethereum is trading at around $4,165, with recent volatility including intraday highs of $4,233.58 and lows of $4,088.72, highlighting its active market.

This development signals increasing institutional interest in Ethereum, especially with ongoing upgrades like proof-of-stake and expanding DeFi applications, which could influence broader market trends.

Ethereum is viewed bullishly by industry experts, with BitMine's CEO Thomas Lee describing ETH as a 'discount to the future,' emphasizing its potential in upcoming crypto and AI supercycles.

Lee also sees Ethereum as a macro trade over the next 10-15 years, crucial for integrating Wall Street and AI into blockchain technology.

Bit Digital has shifted its focus from Bitcoin mining to managing Ethereum, emphasizing staking and treasury management to leverage Ethereum's long-term growth prospects.

The company's strategic move reflects the rising institutional interest in Ethereum as a valuable digital asset for corporate treasuries, enhancing liquidity and governance.

The convertible notes will have an initial conversion rate of approximately 240.38 shares per $1,000 principal, with a conversion price of $4.16 per share, representing a 30% premium over recent prices.

The notes will be senior, unsecured obligations maturing on October 1, 2030, with an annual interest rate of 4%, and will include options for holders to convert into cash or shares before maturity.

The offering is conducted under an effective SEC shelf registration, with Barclays, Cantor, and B. Riley Securities serving as joint lead managers.

Following the announcement, BitMine’s stock surged nearly 15%, partly driven by Peter Thiel acquiring a 9.1% stake, signaling strong institutional support.