Bit Digital targets $500M raise to expand HPC and cloud services

Bitcoin (CRYPTO:BTC) mining company Bit Digital has announced plans to raise up to $500 million through an at-the-market (ATM) equity offering, according to a filing dated April 30.

The proposed raise could exceed Bit Digital’s current market capitalisation of approximately $429 million, potentially resulting in significant share dilution if fully subscribed.

The ATM program will allow Bit Digital to periodically issue and sell shares of its common stock via investment bank H.C. Wainwright Co., which will receive a commission of up to 3% on sales.

As of April 28, Bit Digital reported having 203.8 million outstanding shares.

Funds raised will be allocated for general corporate purposes, including capital expenditures to acquire new equipment.

The company intends to use the proceeds to support its planned expansion into cloud services and high-performance computing (HPC).

This move comes amid challenging Bitcoin mining economics, with the hashprice—a key measure of miner profitability—remaining below $50 per petahash per second (PH/s) in recent months.

Bit Digital’s fourth-quarter 2024 earnings report indicated its fleet hashcost was $44 per PH/s, excluding corporate overhead.

With tightening profit margins, many Bitcoin miners are seeking alternative revenue streams.

Equity offerings, debt financing, and convertible notes have become common strategies to sustain operations.

Some mining firms are diversifying into adjacent sectors such as artificial intelligence and HPC.

In the fourth quarter of 2024, publicly traded mining companies collectively raised over $1.6 billion through equity financing and more than $4.6 billion via debt financing.