Bit Digital Acquires Ethereum Using Convertible Note Proceeds

Bit Digital, a digital asset treasury company listed on the Nasdaq, recently bought 31,057 Ethereum (ETH). According to the announcement, the company purchased the ETH using funds from its completed $150 million convertible note offering. 

Public Offering Brings Total Holdings to 150,244 ETH

Interestingly, this purchase increases Bit Digital’s total Ethereum holdings to 150,244 ETH, solidifying its role as a prominent player in the crypto market. 

Notably, the convertible notes were sold at a premium, indicating strong investor confidence in Bit Digital’s long-term plans. The company stated that this acquisition fits into its strategy to diversify and strengthen its digital asset portfolio.

Several well-known investors participated in the offering, including Kraken Financial, Jane Street Capital, and Jump Trading Credit. Their involvement supports Bit Digital’s business model. It also highlights the growing interest in Ethereum and digital assets among institutional investors.

Recall that at the end of the first quarter of 2025, the company held 24,434.2 ETH. At that time, one ETH was worth $2,444, meaning the firm’s ETH holdings were valued at approximately $59.8 million. This is small compared to what the company has at the time of writing.

Bit Digital Bets Big on Ethereum

In July, Bit Digital announced it raised $21.4 million to support its new focus on Ethereum. As reported, this money came from underwriters who decided to purchase additional shares following a public offering. With this additional funding, the company expanded its Ethereum treasury and shifted its focus away from Bitcoin (BTC) mining.

Last month, the company announced the pricing of its increased public offering of $135 million in convertible senior notes. These convertible notes carry a 4.0% interest rate, payable in 2030. There is no doubt that this move reflects Bit Digital’s commitment to expanding its operations and enhancing its role in the digital asset space.

Unlike most public crypto firms, such as MARA, which mainly hold Bitcoin in their treasuries, Bit Digital is taking a different path. As part of this transition, the firm plans to convert its Bitcoin holdings into Ethereum over time.

A Trend Among Crypto Miners

Notably, Bit Digital is not alone. Other Bitcoin mining firms are starting to follow a similar path. BitMine Immersion Technologies, another mining company, recently shared plans to raise $250 million to build its own Ethereum treasury.

A few days ago, the company announced a sharp increase in its Ethereum holdings to approximately 2.83 million worth of the cryptocurrency. This increase raised the total value of its crypto and cash assets to around $13.4 billion. Furthermore, this has made BitMine the largest corporate holder of Ethereum and one of the biggest digital asset treasuries in the world.

BitMine has also stated that it aims to own up to 5% of the total Ethereum supply. This goal, supported by Chairman Tom Lee, has been repeatedly emphasized in public statements and official filings.