Bit Digital, a global platform for high -performance computing infrastructure (HPC) and the Digital Asset Mining Company, has announced plans to raise up to $ 500 million by offering shares in the market (ATM).
The process of collecting donations by the company is an attempt to enhance its expansion in HPC and cloud services, as traditional bitcoin mining becomes less profitable due to tightening margins.
The proposed ATM view will allow the Bit Digital version to release and sell shares from its shared shares over time through the Bank HC Wainwright & Co. , Which will work as a sales agent and receive a 3 % commission on any shares sold.
The size of the offer is more than the current market value of Bit Digital, at a value of approximately $ 429 million, and may require current shareholders to reduce their holdings.
according to Digital bitThe supply returns will be used for public companies, including capital expenditures on mining equipment, new cloud service, working capital and potential acquisition.
This donation collection initiative comes amid the difficult economies of miners in Bitcoin with challenges such as the Bitcoin event to half 2024, network issues, and increased operating costs.
The diversity of mining companies in the neighboring sectors
In response, many mining companies have followed stock offers, debt financing, or convertible notes to support operations and axis in neighboring sectors such as AI and HPC. In the fourth quarter of 2024 alone, public mining companies raised more than $ 1.6 billion by financing stocks and more than $ 4.6 billion by financing debt.
The Bit Digital axis includes HPC and Cloud Services. In October 2024, the company gained Enovum Data CentersTier 3 HPC data center, for about 62.8 million Canadian dollars ($ 46 million).
In addition, Bit Digital entered into a major service agreement (MSA) With Boosteroid Inc. One of the largest cloud gaming providers, in August 2024. The agreement began a preliminary deployment of 300 graphics processing units that are expected to generate about $ 4.6 million of revenue over five years.
Cloud and HPC rescue services with mining stumbling
For the 2024 fiscal year report, Bit Digital reported a total revenue of $ 108.1 million, an increase of 141 % over the results of the previous year. Digital bit attributed the increase to the start of its HPC services. The company’s liquidity amounted to about 260.7 million dollars, with shareholders ’rights of 463.5 million dollars.
It also achieved $ 58.6 million of Bitco Mining, which was 32 % increase from 2023. Cloud services represent $ 45.7 million in 2024. Thanks to the acquisition of Enovum Data Corp, it achieved $ 1.4 million of Collection Services. Its revenues in Et Esk increased by 169 % after it achieved $ 1.8 million revenues.
Digital asset mining accounted for 54 % of the Bit Digital revenue source in 2024, which is a large variation in 2023, as he was responsible for 98 % of the company’s revenue.
The Bit Digital Business lines of HPC, along with its cloud services, were born 42 % of its revenues for 2024, with a large part of the coming distances during the fourth quarter of the year.
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