Bit Digital CEO Sam Tabar has advised digital asset treasury (DAT) companies to opt for unsecured debt financing over secured debt to better navigate potential bear markets. Speaking at the Token2049 summit in Singapore, Tabar highlighted the dangers of secured debt, particularly for Ethereum treasury builders, as creditors may target the company and its collateral if Ethereum's value drops. This cautionary advice comes as Bit Digital announced an expansion of its convertible bond offering to $135 million, featuring a 4% annual interest rate and semi-annual payments.
Bit Digital CEO Advises DAT Firms Against Secured Debt Amid Market Risks
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.