Bitfarms shares are trading lower after the company announced a C$60 million private placement with U.S. institutional investors.
Portfolio Pulse from Benzinga Newsdesk
Bitfarms shares have declined following the announcement of a C$60 million private placement with U.S. institutional investors. The capital raise may dilute existing shareholders but also provides the company with additional funds for operations or expansion.
November 24, 2023 | 1:35 pm
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Bitfarms' stock price is likely to experience short-term downward pressure due to the announcement of a C$60 million private placement, which could lead to dilution of existing shares.
Private placements often result in dilution of existing shares, which can lead to a decrease in stock price as the market adjusts to the increased share supply. However, the additional capital can be positive in the long term if used effectively for growth.
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