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Bit Digital bets $100 million on Ethereum: is the price headed for the moon?

The Nasdaq-listed mining company Bit Digital has announced a new financing round.

By Luc Vesters
• 2 min read
Bit Digital bets $100 million on Ethereum: is the price headed for the moon?

The Nasdaq-listed mining company Bit Digital has announced a new financing round. The company plans to raise up to $100 million via a bond issue.

With the funds, Bit Digital mainly aims to expand its Ethereum reserve. In the statement it said: "Bit Digital plans to use the net proceeds from the issue to buy Ethereum for treasury purposes and for general corporate purposes." These include, according to the company, working capital, investments in infrastructure, or the repayment of existing debt.

Bit Digital has so far been best known for its Bitcoin mining, but this move intentionally expands its ETH treasury strategy. The company currently owns about 120,000 Ether.

The largest Ethereum treasury holder remains BitMine for now, owning about 2.4 million Ether and thus more than two percent of the total circulating supply. Since mid-September the company bought an additional 264,000 ETH worth $1.1 billion. The goal is to grow the supply long-term to five percent of the total, currently around six million Ether. CEO Tom Lee called Ethereum in this context "one of the biggest macro trades for the next ten to fifteen years".

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