BTC Digital Ltd. (NASDAQ:BTCT) saw its stock decline by 15% after announcing a registered direct offering of $6 million targeted at institutional investors.
The company plans to issue 2 million ordinary shares priced at $3.00 each, according to a statement released today. The funds raised, combined with current cash reserves, will be used to acquire Ethereum cryptocurrency.
The offering is expected to close on or around July 16, 2025, pending standard closing conditions. Aegis Capital Corp. is acting as the sole placement agent for the transaction.
This share issuance represents notable dilution for existing shareholders, which appears to be a key factor behind the stock’s decline. With the offering price set at $3.00 per share, below recent trading levels, additional selling pressure on the stock is likely.
BTC Digital, a company focused on blockchain technology, is strategically increasing its Ethereum holdings through this capital raise, shifting focus from Bitcoin to expand its crypto portfolio.
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