Calculating Bit Digital's 'Fair Value'

Summary Bit Digital recently completed a $150 million convertible note offering, with the proceeds used to purchase ￰0￱ company has transitioned from a Bitcoin miner and ETH DAT to a pure ETH DAT with HPC/AI exposure through its WhiteFiber ￰1￱ current price levels, BTBT stock is trading at nearly a 13% discount to what I feel is a conservative net asset value estimate. I believe BTBT shares should be priced closer to $4.45. Back in early July, when I last covered Bit Digital ( BTBT ) for Seeking Alpha, I reiterated a cautious sentiment that I have had with the stock going back the last year or ￰2￱ BTBT Coverage History (Seeking Alpha) Prior to flipping to more neutral in December 2024, I had written 6 consecutive BTBT articles labeling the stock either a 'buy' or a 'strong buy' between March 2023 and August ￰3￱ general feeling on Bit Digital over these last few quarters has been that the company betting on Ethereum ( ETH-USD ) over Bitcoin ( BTC-USD ) had been detrimental to its returns due to Ethereum's significant underperformance against the top Digital ￰4￱ has certainly changed: TrendSpider After bottoming out against Bitcoin in April, Ethereum has performed incredibly well over the last five ￰5￱ speaking, I'd argue very little has actually changed with the long-term ETH thesis over that period of time.

Yet, driven by the surge in Ethereum-based DAT companies in the public equity market, of which Bit Digital can now be considered one, BTBT shares are interesting once ￰6￱ this update, we'll get an updated look at a fair value estimate for BTBT shares now that the company has essentially exited the Bitcoin mining business and sold $150 million in convertible notes to start ￰7￱ Notes At the end of September, Bit Digital announced the pricing on its upsized convertible note offering that was disclosed earlier in the ￰8￱ the exercising of an additional $15 million in underwriting options, Bit Digital's total convertible note sales were $150 million at a conversion price of $4.16 per ￰9￱ table below breaks down the potential BTBT dilution from converts as follows: Convertible Note Details Raised $150,000,000 BTBT Shares per $1,000 240.4 $1,000 Allotments 150,000 BTBT Shares from converts 36,057,690).

That company has a $1.3 billion market cap and Bit Digital owns roughly 75% of those ￰10￱ the company's ETH position, WhiteFiber shares, and potential convert dilution, I'm estimating BTBT fair value like this: As of 10/8/25 Unit Value Total Value Shares Outstanding 321,435,847 $3.88 $1,247,171,086 WYFI Shares 27,043,749 $34.33 $928,411,903 ETH Balance 153,244 $4,441.99 $680,708,316 Asset value $1,609,120,219 Convertible notes/payments $180,000,000 NAV $1,429,120,219 NAV Discount 12.73%