BTC Digital Raises $7M at $1.14 Unit Price, Shares Drop 30% on Ethereum Pivot
BTCT•BTC Digital priced a $7 million unit offering at $1.14 per unit, with warrant exercise potentially boosting proceeds to $21 million, diluting its 9.52 million shares. Shares plunged over 30% after the company announced converting all Bitcoin holdings into Ethereum to pursue staking, DeFi, and tokenization opportunities.
1. $7M Offering Details
BTC Digital sold 6.1 million common units at $1.14 each, raising $7 million from institutional investors. Each unit includes one ordinary share or one pre-funded warrant, plus PIPE warrants for one share. If all common warrants are exercised, the company expects gross proceeds to reach $21 million. Proceeds will fund general corporate purposes and working capital.
2. Stock Reaction
Following the offering pricing, BTCT shares tumbled over 30%, trading near record lows as the market reacted to immediate dilution concerns. The unit price matched the prior session’s closing price, offering no premium to existing shareholders. Trading volume spiked as investors digested the impact on share count and per-share value.
3. Strategic Pivot to Ethereum
BTC Digital announced it will convert all existing and future Bitcoin holdings into Ethereum, positioning itself within staking, DeFi protocols, and real-world asset tokenization. The company previously raised $6 million and deployed $1 million into Ethereum to kickstart the transition. Management cited Ethereum’s smart-contract ecosystem as key to long-term growth.
