Bitcoin mining company Bit Digital raises $150 million to purchase ETH and exit the mining industry

ChainCatcher news, according to The Miner Mag, Bit Digital has raised $150 million through a public offering to accelerate its transition from Bitcoin mining to Ethereum staking and financial operations. The company priced 75 million shares at $2 per share and additionally offered 11.25 million shares to underwriters through a 30-day option. The proceeds from this offering will be used to purchase Ethereum, making it one of the largest public ETH financial commitments to date.

This fundraising formalizes Bit Digital's strategy to exit the Bitcoin mining business, as the company now plans to sell or gradually phase out its mining operations. With the tightening of the mining economy in the industry, Bit Digital has relied on third-party hosting partners like Coinmint to operate its mining fleet, but the termination of that agreement late last year has left its mining operations in disarray.

Additionally, Bit Digital has submitted a confidential initial public offering (IPO) application for its wholly-owned subsidiary WhiteFiber Inc., which focuses on high-performance computing (HPC) business.