BTC Digital shares plans for non-public offerings

BTC Digital Ltd. (NASDAQ:BTCT), a finance services company, announced the results of its annual shareholders' meeting held on Thursday, where two key proposals were voted upon by its security holders.

The first proposal, which passed with significant support, was the ratification of Audit Alliance LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.

The second, a more strategic proposal, involved the approval to issue at least 600,000 ordinary shares through one or more non-public offerings. The proposal received a majority of the votes in favor, though not as overwhelmingly as the first.

The detailed voting results are as follows: For the selection of Audit Alliance LLP, there were 1,239,249 votes for, 45,022 against, and 6,535 abstentions. Regarding the issuance of ordinary shares, 1,173,834 voted in favor, 115,491 against, and there were 1,481 abstentions.

These outcomes reflect the shareholders' trust in the company's current accounting oversight and their agreement with the company's approach to raise capital through non-public means. The exact terms and timing of the offerings have not been disclosed.

It is worth noting that on the record date, July 1, 2024, there were 2,610,785 shares of the company’s ordinary shares issued and outstanding. The quorum for the meeting was established with the presence of 1,290,806 shares.

BTC Digital Ltd., previously known as DTC Digital Ltd. and before that as Meten Holding Group Ltd., has undergone several name changes in recent years, with the last occurring on August 16, 2023.

InvestingPro Insights

In the context of BTC Digital Ltd.'s recent shareholder meeting outcomes, a glimpse into the company's financial health and stock performance through InvestingPro's lens provides investors with additional layers of insight. As of the last twelve months leading up to Q2 2024, BTC Digital Ltd. has been trading at a low Price / Book multiple of 0.21, indicating that the market may be undervaluing the company's net asset value. This aligns with an InvestingPro Tip highlighting the stock's low revenue valuation multiple, suggesting that the company's sales are also potentially undervalued by the market.

However, a deeper dive into the financial metrics reveals challenges, including a significant revenue decline of nearly 60% over the last year and a negative gross profit margin of -20.2%, which aligns with another InvestingPro Tip pointing out the company's weak gross profit margins. The stock's performance reflects these difficulties, having fallen significantly over various time frames, including a 22.22% drop over the last month and a steep 68.05% year-to-date decline.

Investors considering BTC Digital Ltd.'s strategic decisions, such as the issuance of new shares, should weigh these financial metrics and stock performance trends. For a more comprehensive analysis, including additional InvestingPro Tips that can further guide investment decisions, visit https://www.investing.com/pro/BTCT.

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