Bit Digital raises $203M in convertible notes due 2032
What's the deal? Bit Digital (NASDAQ: BTBT) disclosed in its Form 10-Q, filed on November 12, 2026, that it issued $203.2 million of convertible senior notes due 2032. The crypto-and-compute company issued the notes on August 21, 2026, and bought zero-strike call options in connection with the offering.
Why now? The 2032 notes help refinance earlier debt. Bit Digital executed an induced conversion of its 2031 convertible notes on August 18, 2026, issuing ordinary shares to noteholders and recording an induced conversion expense.
What's the endgame? The company is building out AI data-center infrastructure. Its majority-owned subsidiary WhiteFiber raised $310 million in August through 5% convertible notes due 2032, using about $118.5 million of proceeds plus roughly 6.3 million shares to retire most of its own 2031 notes.
Bit Digital also expanded its borrowing capacity during the quarter. It closed a syndicated credit facility with Royal Bank of CanadaDealroom has a profile for this one. Try Dealroom → on July 6, 2026, and entered facilities tied to a North Carolina real estate acquisition and its WhiteFiber Iceland operations. After quarter-end, on November 9, 2026, it added NC-1 project financing with Morgan Stanley Senior Funding as administrative agent, plus a further $70 million draw on a related-party credit facility.
What could go wrong? The refinancing increases leverage and fixed obligations. New borrowings carry floating-rate exposure, while the induced conversion and shares issued to noteholders dilute existing holders — the zero-strike call options are designed to partly offset that dilution.
The signal: The round reflects a broader AI-infrastructure funding boom, with peers such as Nebius also raising billions in convertible debt to finance data-center expansion. For Bit Digital, the financing extends runway, but the key question is whether planned infrastructure growth can generate returns sufficient to justify the burden.
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