BIT Digital, a world platform for high-performance computing (HPC) infrastructure and digital asset mining corporations, has introduced plans to lift as much as $500 million by means of market (ATM) fairness gives.
The corporate’s fundraising marketing campaign is an try to encourage its growth into HPC and cloud providers as conventional Bitcoin mining reduces profitability attributable to tightening margins.
With the proposed ATM providing, BIT Digital will act as a gross sales agent and obtain a fee of as much as 3% on the inventory bought. By the Firm, shares of frequent inventory could also be issued and bought over time.
The scale of the providing is greater than $429 million of digital’s present market capitalization, and current shareholders could have to dilute their holdings.
Based on BIT Digital, income from the providing shall be used for common company functions, corresponding to new mining and cloud service tools, working capital and capital expenditures on potential acquisitions.
The funding initiative lies in difficult economics for Bitcoin miners with challenges such because the 2024 Bitcoin Harving Occasion, community points and elevated working prices.
Mining corporations diversify into adjoining sectors
In response, many mining corporations pursue fairness choices, debt financing, or convertible notes, supporting operations, and pivot into adjoining sectors corresponding to AI and HPC. Within the fourth quarter of 2024 alone, public mining corporations raised greater than $1.6 billion by means of fairness financing and greater than $4.6 billion by means of debt financing.
BIT Digital’s pivot consists of investments in HPC and cloud providers. In October 2024, the corporate acquired Enovum Information Facilities, a Tier 3 HPC information middle operator, for roughly $62.8 million ($46 million).
Moreover, BIT Digital signed a Grasp Companies Settlement (MSA) with Boosteroid Inc., one of many largest cloud gaming suppliers, in August 2024. The deal launched an preliminary deployment of 300 GPUs, which is predicted to generate round $4.6 million in income over 5 years.
Cloud and HPC providers for rescue as mining declines
In its 2024 report, BIT Digital reported whole income of $108.1 million, up 141% from the earlier 12 months’s outcomes. BIT Digital is believed to be attributed to the launch of the HPC Companies enterprise. The corporate had a liquidity of roughly $260.7 million, with shareholders’ shares of $463.5 million.
It additionally gained $58.6 million from Bitcoin Mining. This has elevated by 32% since 2023. Cloud providers accounted for $45.7 million in 2024. The acquisition of EnovumDataCorp earned $1.4 million from Colocation Companies. Its ETH staking revenues rose 169% after producing income of $1.8 million.
Digital asset mining accounted for 54% of BIT Digital’s income stream in 2024. This contrasts with 2023, the place it was accountable for 98% of the corporate’s income.
Bit Digital’s HPC enterprise line and cloud providers generated 42% of income in 2024, most of which came about within the fourth quarter of the 12 months.
