Why Crypto-Related Stock Bit Brother Is Extremely Volatile Today
Portfolio Pulse from Henry Khederian
Bit Brother Ltd (NASDAQ:BETS) shares plummeted by 37% to $0.022 after announcing a registered direct offering of $12.0 million worth of Class A ordinary shares and warrants. The offering includes 184,615,385 shares at $0.065 each, with Class D and E warrants exercisable at $0.06 and $0.13 respectively. The deal is expected to close around December 8, with Maxim Group LLC as the placement agent. Additionally, Bit Brother received a Certificate of Occupancy for its new cryptocurrency mining farm in Texas, planning to start operations in early 2024 with a goal of producing 12 Bitcoin per month.
December 07, 2023 | 5:01 pm
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Bit Brother's stock price has significantly dropped due to the announcement of a large direct offering at a price below the current trading level, which typically dilutes existing shareholders.
The sharp decline in Bit Brother's stock price is a direct reaction to the dilutive effect of the new share offering, which is priced below the recent trading price, indicating a bearish outlook in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100