Bit Digital Stock falls 15% as firm pivots in Ethereum and launches $ 150m offering
The former Bitcoin mining firm Bit Digital fell dramatically this week, with the sharing price falling nearly 19% in the five -day period to close to $ 1.99 on Friday, with a 15% fall in just 24 hours.
Plunge complies with the company’s major announcements, including a $ 150 million public offer and a strategic pivot on ether staking. On Thursday, the company announced A public offer of 75 million ordinary shares intended to raise $ 150 million.
Bit Digital plans to issue 75 million ordinary shares at $ 2 each. Proceeds will be used to buy ether (Eth), doubling the previous decision to move to a company dedicated to Ethereum.
After the news, the company’s stock sank to less than $ 1.86 before recovering slightly to after -time trade.
Bit digital pivots in an eth staking and treasury company
The news follows the company’s decision earlier this week to dick bitcoin (Btc) for ET. On Wednesday, the company revealed that it is moving In a “pure-play Ethereum staking and treasury company,” focusing on increasing its handling in ETH.
The company said it had accumulated the ETH for its treasury reserves and started its staking infrastructure in 2022. It plans to liquidate Bitcoin handles to buy more ETH.
On March 31, the Bit Digital was held 24,434 ETH and 417 BTC, worth about $ 44.6 million and $ 34.5 million, respectively.
Once it has converted all of its BTCs to ETH, the company will have about 42,000 ETH, which costs nearly $ 103 million in current market prices.
Related: Bitcoin Mining Firm Bit Digital reports almost 40%
Bit digital stock dips 19% in five days
Investors react poorly to the move. Bit Digital shares dropped nearly 4% on Wednesday following the Eth Pivot announcement.
Throughout the week, company stock prices declined nearly 19%, from a high $ 2.40 to low $ 1.86 on Friday. Despite the reaction, the company did not show signs of stopping its transfer to ETH.
Bit Digital is the 12th-largest Bitcoin mining company through market capitalization. However, since its eth pivot, companymarketcap Shut up One drop in the 13th place. Data also shows that its stock prices have refused more than 40% this year.
Cointelegraph reached Bit Digital for comment but did not receive a response by publication.
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