The fairness choices might embody extraordinary shares, most popular shares (together with convertible most popular shares), warrants and items comprised of any mixture thereof, in accordance with the submitting.
The corporate stated the proceeds can be used for normal company functions, together with capital expenditures, shopping for new mining tools, different potential acquisitions and normal working capital.
H.C. Wainwright will act because the underwriter if Bit Digital sells extraordinary shares and can supply to promote about 181.8 million shares, implying a roughly 241% enhance in excellent shares, if the entire $500 million price of shares are bought.
That being stated, the prospectus is a “shelf” registration, that means there is no such thing as a current intention to right away promote all of the securities being registered.
Bit Digital migrated all of its bitcoin mining rigs in North America from China final 12 months amid China’s sweeping ban of the business. Nearly 40% of its machines have got here on-line in North America as of March 16.
The remainder of the miners which might be awaiting set up within the U.S. are anticipated to be put in at websites operated by Compute North and/or on the new amenities to be operated by Digihost and Blockfusion in upstate New York in 2022, the corporate stated within the submitting.
Bit Digital’s providing comes shortly after one of many largest bitcoin miners, Riot Blockchain (RIOT), filed an identical prospectus to promote as much as $500 million shares in an ATM providing. And one other miner, Mawson Infrastructure, additionally introduced this month it was trying to elevate as much as $500 million in fairness choices.
Bit Digital’s shares have been unchanged after hours, however have fallen about 58% this 12 months, in comparison with bitcoin’s decline of 13%.