Crypto Miner Bit Digital Upsizes Convertible Note to $135M, Shares Tumble

Bit Digital, a crypto mining company, has increased its convertible note offering from $100 million to $135 million. The decision led to an 8% drop in the company's shares, falling to $2.92 at market open. The company has set the initial conversion price at $4.16 per share, a 30% premium compared to its closing price of $3.20 on September 29. The anticipated net proceeds are expected to be approximately $128.9 million, which could rise to $143.3 million if underwriters fully exercise their option. The funds will mainly be used for purchasing ether, adding to the company's existing holdings of 121,252 ETH, acquired at an average price of $2,635. Similar trends have been observed in the market, as another company reportedly experienced a significant share drop following a convertible note issuance.

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