SINGAPORE - BTC Digital Ltd. (NASDAQ: BTCT), a blockchain technology company, today announced the successful exercise of an over-allotment option by the underwriter in its recent public offering. This move resulted in the sale of an additional 228,853 Ordinary Shares at a price of $8.00 each, contributing approximately $1.8 million to the company's gross proceeds. Consequently, the total number of shares sold in the offering has reached 1,108,853, raising the gross proceeds to about $8.8 million, before accounting for underwriting fees and other estimated expenses. The company, currently valued at $28.8 million in market capitalization, has seen its stock price decline to $6.98, representing a 47% drop over the past week.InvestingPro analysis reveals high price volatility in BTCT's trading pattern, with 11 additional key insights available to subscribers.
The closure of this over-allotment option is expected today, subject to the satisfaction of customary closing conditions. Aegis Capital Corp. has been the sole book-running manager for the offering.
The offering was made under an effective shelf registration statement on Form S-3, which was filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on December 5, 2024. The final prospectus supplement, along with the accompanying prospectus detailing the offering's terms, has been filed with the SEC and is available on its website.
BTC Digital Ltd. focuses on creating value in the metaverse, blockchain, and cryptocurrency mining industry. The company's strategy involves developing blockchain-related businesses in North America, which include cryptocurrency mining, construction of mining farms, operation of mining pools and data centers, as well as the miner accessories business. According to InvestingPro data, the company maintains a moderate debt level with a current ratio of 2.14, though it faces profitability challenges with negative gross margins and earnings per share of -$1.10 over the last twelve months.Get comprehensive financial analysis and Fair Value estimates for BTCT and thousands of other stocks with an InvestingPro subscription.
Investors and interested parties are encouraged to fully review the prospectus supplement and the accompanying prospectus, as well as other documents filed with the SEC, which provide further details about BTC Digital Ltd. and the offering.
This press release is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities has not been made in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
In other recent news, BTC Digital Ltd. has made significant strides in its operations, raising $20 million in a public offering to expand its green energy mining operations and invest in research and development. The company plans to construct and expand mining farms in North America, focusing on sustainable energy sources. The funds will also finance the deployment of new mining machines to increase computing power and develop mining machines for alternative Proof of Work (PoW) cryptocurrencies.
In a bid to boost its mining capacity, BTC Digital announced the addition of 2,000 BITMAIN T21 miners to its North American operations, a move expected to nearly triple its current hash rate capacity to 600 petahashes. The company is also exploring business opportunities across Arkansas, Tennessee, Georgia, and Missouri, with a focus on sustainable energy sources.
BTC Digital has also secured agreements to host and manage 1,100 Bitcoin mining machines for Recte Technologies Company Limited and ASIA INVESTMENT FUND SP2. Additionally, the company has expanded its stake in a cryptocurrency mining venture by acquiring an additional 5.23% equity interest valued at approximately $1,050,400.
Finally, BTC Digital's shareholders ratified Audit Alliance LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2024, and approved the issuance of at least 600,000 ordinary shares through one or more non-public offerings. These developments are part of BTC Digital's strategic focus on value creation across the metaverse, blockchain, and cryptocurrency mining industry.
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