Bit Digital $100M Convertible Notes Fuel ETH Shift, Stock Dips

Bit Digital $100M Notes and Revenue Update Impact

Bit Digital has announced a proposed $100 million offering of convertible senior notes due 2030. The company says the funding will support its ETH reserve strategy, a move that fits a growing trend of firms building Ethereum treasuries.

Bit Digital $100M Convertible Notes Shake Markets

Ethereum treasury Bit Digital proposes raising $100 million with convertible  senior notes due 2030. The Company plans to grant underwriters a 30-day option to purchase up to $15,000,000 in additional Notes to cover over-allotments. The Notes are senior, unsecured obligations and will mature on October 1, 2030. 

Source : X

Holders can convert their Note before the close of business on the second scheduled trading day. The Company will pay or deliver cash, ordinary shares, or a combination of cash and ordinary shares to the converting holders at its election. The interest rate, initial conversion rate, and other terms of the Note will be determined at the time of pricing.

Preliminary Financial Results 

Alongside the offering, the firm gave preliminary results for the two months ended Aug. 31, 2025: revenue likely between $20.1 million and $22.2 million, cost of revenue (ex-depreciation) about $8.2–$9.0 million, and cash & cash equivalents estimated at roughly $163.7–$173.9 million.

Why Bit Digital Is Building an Ethereum Treasury (DAT Strategy)

The company has been accumulating ETH since June 2021. The company's $100M offering is described as intended to support its digital-asset strategy including ETH purchases, which matches a broader shift where corporates convert cash into crypto as a strategic reserve.

This move sits inside that trend; other public firms like BitMine Immersion and SharpLink Gaming have built big Ethereum treasuries in recent months. Firms say this gives shareholders exposure to blockchain growth, potential upside from ETH price appreciation, and staking/DeFi income streams. 

Share Price Drop — Market Response

Despite news of Bit Digital's massive offering plans, the company's shares saw a decline. The announcement pushed its shares lower in after-hours trading. The BTBT share is trading at 3.4 with a dip of 4%. Several market reports showed a drop after the convertible-note news, a common investor reaction when a company raises debt or dilution risk rises. 

Source : Yahoo Finance

How this move could impact Ethereum and other corporate treasuries:

Demand signal: $100M aimed at Ether buying would add direct demand, which can be bullish for ETH price in the short term but relative to global Ether liquidity and exchange flows. The coin is trading at $4206 with a slight increase in the past 24hrs. 

Market psychology: More companies raising funds to buy Ether reinforces the “Ethereum treasury” narrative and may encourage other firms to follow, increasing institutional demand. 

Risk transmission: If Ether falls sharply, companies that funded purchases with debt (like convertible notes) could see their equity valuations compressed and their balance-sheet risk rise. That risk makes investors nervous and can depress stocks of ETH-treasury firms when markets turn.

Bit Digital is raising $100M through convertible notes as part of a wider industry move toward Ethereum treasuries. If the firm uses the money to buy and stake Ethereum, it joins other big public DATs — but that path brings both upside and real risk.