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Investing.com -- Lion Group Holding Ltd (NASDAQ:LGHL) shares tumbled 9.4% on Thursday after the company announced plans to allocate $8 million from a convertible note offering toward purchasing Bitcoin for its corporate treasury.
The Nasdaq-listed company has entered into an amendment to its previously announced Securities Purchase Agreement to facilitate a subsequent closing under its convertible note facility, which will generate approximately $9.98 million in gross proceeds. The transaction is expected to close around December 5, 2025, subject to customary closing conditions.
Lion Group CEO Wilson Wang described the Bitcoin allocation as a strategic move to enhance the company’s treasury, which currently consists primarily of Hyperliquid (HYPE) tokens. "Our digital asset strategy is designed to capture opportunities while maintaining a disciplined approach to risk," Wang stated. "We believe current market conditions present a favorable accumulation window."
The company cited the current "market cooldown" across digital assets as providing an attractive entry point for Bitcoin investment. Lion Group also highlighted Bitcoin’s liquidity and volatility as providing stability and diversification for its balance sheet.
Despite management’s optimistic outlook on the Bitcoin allocation strategy, investors responded negatively to the announcement, sending shares lower. Chardan is acting as the sole placement agent for the subsequent closing of the convertible note offering.
Lion Group noted it will continue to actively manage its corporate treasury and may reallocate among digital assets depending on market conditions.
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