BIT Digital, a worldwide platform for high-performance computing (HPC) infrastructure and digital asset mining corporations, has introduced plans to lift as much as $500 million by market (ATM) fairness provides.
The corporate's fundraising marketing campaign is an try and encourage its growth into HPC and cloud companies as conventional Bitcoin mining reduces profitability because of 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 means of the Firm, shares of widespread 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 present shareholders could must dilute their holdings.
In keeping with BIT Digital, income from the providing can be used for basic company functions, similar 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, assist their operations, and pivot into adjoining sectors similar to AI and HPC. Within the fourth quarter of 2024 alone, public mining corporations raised greater than $1.6 billion by fairness financing and greater than $4.6 billion by debt financing.
BIT Digital's pivot contains investments in HPC and cloud companies. In October 2024, the corporate acquired Enovum Information Facilities, a Tier 3 HPC information heart operator, for about $62.8 million ($46 million).
Moreover, BIT Digital signed a Grasp Providers 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 companies for rescue as mining declines
In its 2024 report, BIT Digital reported complete 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 Providers 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 companies accounted for $45.7 million in 2024. The acquisition of EnovumDataCorp earned $1.4 million from Colocation Providers. 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 liable for 98% of the corporate's income.
Bit Digital's HPC enterprise line and cloud companies generated 42% of income in 2024, most of which came about within the fourth quarter of the 12 months.
