Bit Digital Seeks $500M to Invest in Cloud Infrastructure and HPC Expansion

Bit Digital filed to raise $500 million through an ATM offering, surpassing its $429M valuation.

With a hash price below $50/PH/s, Bit Digital plans to fund cloud and HPC expansion efforts.

Bit Digital reported a Q4 fleet hash cost of $44/PH/s, excluding corporate-level expenditures.

Bit Digital submitted an at-the-market (ATM) equity offering application with the U.S. Securities and Exchange Commission (SEC) to obtain $500 million from investors. The company plans to distribute funds from the ATM offering to execute its present shift toward technology service delivery, which combines Bitcoin mining operations alongside HPC and cloud solutions.

A $500 million capital raise exceeds Bit Digital's market value of $429 million, thus posing substantial risks for shareholder equity dilution throughout the fundraising period. The company released a total of 203.8 million by April 28, 2025. Professional sales agent H.C. Wainwright & Co. received designation by the company to handle the ATM transaction program. The investment bank secures its payment as a 3% commission based on the share value during sales.

Bit Digital has declared that its offering will start gradually based on market conditions and internal capital needs. The funds will be used for Bit Digital's general corporate purposes, which include acquisitions that support its diversification strategy, investments for new infrastructure and equipment upgrades, and maintenance of working capital.

Mining Economics Prompt Strategic Funding Shift

At this time, Bit Digital decided to conduct a fundraising operation while Bitcoin mining profitability decreased across the sector. Operations within Bitcoin mining became more expensive because the Bitcoin network hash price remained below $50 per petahash per second (PH/s). Bit Digital reported fourth-quarter hash cost at $44/PH/s with no added expenses in its latest financial statement.

Due to shrinking profit margins, mining corporations turn to alternative funding methods and develop multiple income sources. Many sector companies have adapted by implementing capital increases, debt issuance, and convertible note creation. These approaches sustain liquidity and allow the company to allocate funds into nearby technology sectors like AI, data center services, and HPC.

Bit Digital's current approach follows changing industry trends. Strategically deploying funds for cloud infrastructure and computing resources enables the organisation to develop a business structure that is stronger and more diverse than Bitcoin mining volatility.

Industry Trends Reflect Increased Financing Activity

Publicly traded Bitcoin miners generated a dramatic rise in their capital acquisition during the last quarter of 2024. Bitcoin mining companies achieved over $1.6 billion by issuing stocks, exceeding $4.6 billion by taking on debt. These statistics revealed miners' financial challenges and led them to pursue new ways of generating additional income.

The ATM filing from Bit Digital allows the company to adapt to market changes through its monitoring capabilities. The capital-raising procedure enables the company to obtain needed resources. Still, it shows mounting restraint within Bitcoin mining because of persistent economic pressures and diminishing block reward payouts post-halving events. Bit Digital's ability to transform into a broader digital infrastructure company will most likely depend on the results of its fundraising activities.