Bit Digital Shares Slide 8% on $135M Upsized Convertible Note

Core Points - Bit Digital (BTBT) shares fell 8% to $2.92 following the announcement of a $135 million convertible note offering [1] - The size of the convertible senior notes offering was increased from $100 million, with underwriters having a 30-day option to purchase an additional $15 million [1] - The notes will mature on October 1, 2030, unless converted, redeemed, or repurchased earlier [1] Financial Details - The initial conversion price is set at $4.16 per share, which is a 30% premium over Bit Digital's closing price of $3.20 on September 29 [2] - Expected net proceeds from the offering are approximately $128.9 million, or $143.3 million if the underwriters fully exercise their option [2] - The company plans to use the funds primarily for purchasing ether (ETH), currently holding 121,252 ETH at an average acquisition cost of $2,635 [2] Market Context - A similar situation occurred with Cipher Mining (CIFR), where shares dropped 19% over two days following a convertible notes issuance [3]