Bit Digital Aims to Raise $500 Million to Expand into High-Performance Computing and Cloud Services
Amid an increasingly harsh Bitcoin mining environment, Bit Digital – one of the largest Bitcoin mining companies in the US – has just announced plans to raise up to $500 million through an at-the-market (ATM) offering. The massive funding is expected to pave the way for a strategic shift into high-performance computing (HPC) and cloud services.
According to the filing dated April 30, 2025, Bit Digital will partner with investment bank H.C. Wainwright & Co., which will act as a sales agent and receive a maximum commission of 3% on the total number of shares sold. The offering will be conducted periodically and flexibly depending on market conditions, allowing the company to proactively raise capital without issuing all of its shares immediately.
Notably, the proposed capital raising – $500 million – exceeds Bit Digital’s current market capitalization, which hovers around $429 million. If the ATM program is fully implemented, this could dilute existing shares, raising some concerns among investors.
Bit Digital said the raised capital will be used for a variety of purposes, including capital expenditures for purchasing new equipment and deploying infrastructure for HPC operations. This is a strategic move in the context of Bitcoin mining profits being heavily pressured by high costs and low hash prices.
In fact, according to the company’s Q4/2024 financial report, Bit Digital’s fleet hashing costs have reached $44 per petahash/second – a level that is close to breaking even compared to current hash rates of less than $50/PH/s. This has forced the company to step up its business model diversification strategy to find new revenue streams.
High-performance computing and cloud services – especially in the context of strong AI development – are becoming attractive destinations for Bitcoin mining companies with available server infrastructure and large computing capacity. Bit Digital is not the only name moving in this direction: the whole industry is witnessing a strong shift wave when public mining companies have raised a total of more than $ 6.2 billion in Q4/2024 through issuing shares and debt financing.
Bit Digital's new move is considered by observers as a bold step but in line with market trends, especially in the post-halving period when block rewards are reduced and profit margins are narrowed. With a plan to invest heavily in HPC and cloud, Bit Digital is gradually reshaping its role – from a traditional Bitcoin mining company to a multi-purpose technology infrastructure provider in the AI era.