Bitcoin Miner Bit Digital Files to Raise Up to $500M in Equity

The equity offerings may include ordinary shares, preferred shares (including convertible preferred shares), warrants and units comprised of any combination thereof, according to the filing.

The company said the proceeds would be used for general corporate purposes, including capital expenditures, buying new mining equipment, other potential acquisitions and general working capital.

H.C. Wainwright will act as the underwriter if Bit Digital sells ordinary shares and will offer to sell about 181.8 million shares, implying a roughly 241% increase in outstanding shares, if all of the $500 million worth of shares are sold.

That being said, the prospectus is a “shelf” registration, meaning there is no present intention to immediately sell all the securities being registered.

Bit Digital migrated all of its bitcoin mining rigs in North America from China last year amid China’s sweeping ban of the industry. Almost 40% of its machines have came online in North America as of March 16.

The rest of the miners that are awaiting installation in the U.S. are expected to be installed at sites operated by Compute North and/or at the new facilities to be operated by Digihost and Blockfusion in upstate New York in 2022, the company said in the filing.

Bit Digital’s offering comes shortly after one of the largest bitcoin miners, Riot Blockchain (RIOT), filed a similar prospectus to sell up to $500 million shares in an ATM offering. And another miner, Mawson Infrastructure, also announced this month it was looking to raise up to $500 million in equity offerings.

Bit Digital’s shares were unchanged after hours, but have fallen about 58% this year, compared to bitcoin’s decline of 13%.