TLDR:

• Bit Digital is seeking $100M through convertible notes due 2030, with funds directed toward Ethereum purchases.
• The company may allow underwriters to buy an extra $15M in notes to cover over-allotments.
• Proceeds from the offering could also support corporate expenses, acquisitions, and new digital asset opportunities.
• Barclays, Cantor, and B. Riley Securities have been named as lead book-running managers for the transaction.
  

---

Bit Digital is preparing a major move. The Nasdaq-listed crypto firm announced plans to raise $100 million through convertible notes. 

The funds will be aimed at Ethereum purchases while leaving room for other business uses. This step reflects a strategy to build exposure to digital assets while accessing fresh liquidity. The company confirmed the plan through a filing and a press release on September 29.

Bit Digital Convertible Notes Offering Targets Ethereum

According to Bit Digital, the convertible senior notes will mature in October 2030 unless redeemed, repurchased, or converted earlier. 

Investors holding the notes may opt to convert them into cash, shares, or a mix of both. The company stated that the final interest rate, conversion price, and terms will be set at the time of pricing.

The filing also revealed that underwriters will have the option to purchase an extra $15 million in notes. This move would help manage over-allotments if demand exceeds the $100 million base offer. 

Barclays, Cantor, and B. Riley Securities will serve as joint lead book-running managers for the deal.

Proceeds from the raise are expected to go primarily toward buying Ethereum. The firm added that remaining funds could support acquisitions, investments, or other general needs tied to its digital asset operations. This strategy ties debt financing directly to crypto exposure, a path few firms in the space have taken publicly.

The company emphasized that the offering is subject to market conditions and may not close as planned. It also clarified that the securities will be issued under an existing shelf registration statement declared effective by the SEC earlier in June.

Offering Structure and SEC Filing

Bit Digital explained that the notes are unsecured senior obligations. Investors will be able to convert them at their discretion until shortly before the maturity date. The company will decide whether to settle conversions in cash, stock, or both.

The announcement was supported by a filing with the Securities and Exchange Commission, where the preliminary prospectus is available. Investors have been advised to review the prospectus before making decisions, as it outlines risks and conditions in detail.

According to the official press release, copies of the preliminary prospectus can be obtained through the underwriters. This ensures transparency around terms and compliance with U.S. securities law. The firm underlined that the release is not a direct offer to sell securities but an announcement of the proposed deal.

Wu Blockchain also shared details of the move, pointing out the timing and focus on ETH. The market reaction will now depend on pricing terms and how investors view the crypto exposure strategy.

The post Bit Digital Moves to Raise $100M for Ethereum Purchases appeared first on Blockonomi.

Go to Source

TLDR

• ETH reserves on exchanges are falling, indicating growing long-term holding
• Some analysts project a possible rally toward $10,000 after correction
• SWIFT is testing Ethereum’s Linea network with major banks including BNP Paribas and BNY Mellon
• Current Ethereum price is $4,176.84
• Exchange reserve decline suggests supply reduction while price remains steady

---

Ethereum may be on the verge of a major price movement as on-chain data reveals shifting market dynamics. CryptoQuant’s recent analysis shows that ETH reserves on exchanges have been steadily declining in recent weeks, a trend that often precedes price increases.

This movement of coins from exchanges to personal wallets indicates growing confidence among investors. When ETH leaves exchanges, it reduces the available supply that can be sold, potentially setting the stage for price increases if demand grows.

There are several reasons why ETH might be moving off exchanges. Some investors are transferring existing holdings to self-custody solutions. Others are purchasing new ETH and immediately moving it to private wallets for long-term holding.

CryptoQuant has identified the latter as the primary driver in the current market. This suggests that many buyers are accumulating ETH with the intention of holding it for an extended period rather than trading it.

Past market cycles have shown that declining exchange reserves can precede price rallies. During previous periods when network congestion and high gas fees were followed by renewed demand, ETH prices climbed significantly.

A similar pattern emerged during the FTX crisis when many holders withdrew their coins from exchanges. When market conditions improved later, ETH prices responded positively.

Currently, exchange reserves are falling while the price remains relatively stable at $4,176.84. This indicates that buyers are active in the market, but sellers are still providing enough supply to maintain price equilibrium.

Analysts Eye $10,000 Target

The second-largest cryptocurrency has already seen substantial gains from its recent market bottom. Analyst Ted Pillows noted that ETH has rallied approximately 250% from its lowest point.

While Pillows acknowledges that a correction was expected and may still be underway, he believes it could conclude soon. More interestingly, he suggests that once this pullback ends, ETH price could resume its upward trajectory potentially surpassing the $10,000 mark when demand returns.

Though this target remains speculative, it reflects the optimistic outlook some market watchers maintain regarding Ethereum’s future prospects.

Another metric closely monitored by traders is the realized price level of large investors or “whales.” When ETH falls below this threshold, many view it as an accumulation opportunity.

CryptoQuant has pointed out that previous drops below this mark have presented successful buying windows for investors. This observation connects to the broader theme that falling reserves suggest supply constraint.

If stronger demand enters the market while supply remains limited, prices could break higher. The $10,000 level remains an ambitious target, but the current market setup shows many participants are positioning for potential long-term growth.

SWIFT Test Boosts Ethereum’s Institutional Appeal

Beyond exchange data, recent adoption news has added another dimension to Ethereum’s outlook. Reports indicate that SWIFT, the global payments messaging network, has begun testing Ethereum’s Linea, a Layer-2 scaling solution.

This development carries weight considering SWIFT connects over 11,000 banks worldwide and processes more than $150 trillion in transactions annually.

The pilot program includes major financial institutions such as BNP Paribas and BNY Mellon. Their involvement focuses on utilizing Linea for on-chain messaging and settlement processes.

This testing phase demonstrates that established banks are exploring Ethereum technology for practical applications in the traditional financial system.

If these projects expand in scope, they could further cement Ethereum’s role in the broader financial ecosystem. Such integration might generate increased demand for ETH over time.

When combined with decreasing exchange reserves, these adoption stories contribute to a picture of growing institutional interest in the asset. This interest may translate to sustained demand in the future.

As investors continue to monitor these developments, the declining exchange reserves and institutional testing provide tangible signals about Ethereum’s market position. The current price of $4,176.84 reflects the balance between these bullish indicators and ongoing market factors.

The post Ethereum (ETH) Price: Data Shows Decreasing Exchange Reserves While Trading at $4,176 appeared first on Blockonomi.

Go to Source