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Bit Digital has increased its Ethereum holdings by acquiring 31,057 ETH worth approximately $140 million. This purchase was financed by selling $150 million in convertible notes, marking a key step in the company's digital asset acquisition strategy. This purchase included the full exercise of underwriters' options, bringing Bit Digital's total holdings to around 150,244 ETH.
Bit Digital is currently the sixth-largest Ethereum treasury among publicly traded companies, according to data from Strategic ETH Reserve. The expanding Ether portfolio of the company highlights its strategic focus on blockchain assets, which are vital to digital financial systems. According to CEO Sam Tabar, Ethereum is viewed by the firm as a key part of the emerging decentralized infrastructure.
The newly purchased ETH was financed with convertible notes at a price of 4.16 per share, which implies an 8.2% premium on the mark-to-market net asset value (mNAV) of Bit Digital at the issue date. This offering received the interest of some of the largest crypto institutions, including Kraken Financial, Jump Trading Credit, and Jane Street Capital.
Bit Digital’s estimated mNAV as of late September stood at $3.84 per share. The balance sheet reflected that the company owned Ethereum, valued at $512.7 million, and equity in its majority-owned company, WhiteFiber Inc., worth $723.1 million. This structure portrays that there is a robust asset base on which it can expand into digital assets. The company believes that it can increase shareholder value by funding Ethereum accumulation in a manner that positively impacts the net asset value per share.
Bit Digital is now the sixth-largest corporate holder of Ethereum ranking behind PulseChain Sac, the Ethereum Foundation, The Ether Machine, SharpLink Gaming and Bitmine Immersion Technologies. Bitmine owns approximately 2.83 million ETH, which makes it the largest corporate holder while SharpLink Gaming holds around 838,730 ETH, valued at roughly $4 billion.
In addition, the rising ETH holdings of Bit Digital reflect a broader trend of institutional accumulation. Data shows that reserve companies and exchange-traded funds own about 12.6 million ETH, worth roughly $56.4 billion. This number constitutes more than 10.3% of the entire Ethereum circulation supply, further supporting its position as a central digital treasury asset.
Also Read: Ethereum News Today: ETH Faces $10B Validator Exit as Institutions Reinvest
CEO Sam Tabar affirmed that Bit Digital intends further to increase its Ethereum holdings in a cost-efficient manner. This supports the company's aims to balance between capital efficiency and long-term net asset value growth.
Ethereum price is currently at $ 4,471. The firm's continued accumulation policy aligns with its goal of consolidating its presence in the digital asset market. The relocation is also indicative of increased institutional belief in Ethereum as a long-term investment tool and a layer of decentralized finance.
