Bit Digital Stock Slides After $80 Million Private Placement
Bit Digital (Nasdaq: BTBT) announced an $80 million private placement to sell stock to institutional investors. The shares fell 14% to $6.80 as of 14:00 UTC.
The bitcoin mining company agreed to sell 13.5 million ordinary shares and warrants for another 10.1 million shares. The combined purchase price of one share and one warrant is $5.93. The warrants, each of which allows the purchase of 3/4 of a share, will have an exercise price of $7.91 per whole share.
H.C. Wainwright & Co. is the exclusive placement agent. Bit Digital said it expects the placement to close on Oct. 4.
Bit Digital earlier this week appointed Brock Pierce, chairman of the Bitcoin Foundation, to its board of directors, effective Oct. 31.