Bit Digital Declines 10% Following Private Placement Of Shares

Shares of bitcoin mining company Bit Digital, Inc. (BTBT) are down more than 10% Thursday morning after the company announced private placement of about 13.5 million shares.

The company has entered into a definitive agreement with institutional investors to purchase 13,490,728 ordinary shares. It will also issue unregistered warrants to the investors to purchase up to an aggregate of 10,118,046 ordinary shares.

The purchase price for one ordinary share and one warrant to purchase three-fourths of an ordinary share is $5.93.

The warrants have an exercise price of $7.91 per whole ordinary share, will be exercisable immediately, and will have a term equal to three and one-half years following the effective date of the resale registration statement registering the ordinary shares and warrant shares.

The private placement is expected to close on or about October 4, 2021.

BTBT is at $7.06. It has been trading in the range of $3.40- $33 in the last one year.

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